For accounting purposes, income tax expense is accrued based on the current year's estimated profit before income tax.

Name: For accounting purposes, income tax expense is accrued based on the current year's estimated profit before income tax.
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Quizplus · Accepted Answer

Income tax expense is accrued based on the current year's estimated profit before income tax to ensure proper matching of expenses with revenues in the period they are earned. This is in accordance with the accrual basis of accounting.

For Accounting Purposes, Income Tax Expense Is Accrued Based on the Current