Which of the following statements with respect to the relationship between accounting Net Income and Net Income For Tax Purposes is NOT correct?
A)Both accounting Net Income and Net Income For Tax Purposes value many assets at their historical cost.
B)Accounting Net Income requires that costs be matched with revenues.
C)Net Income For Tax Purposes requires that costs be matched with revenues.
D)Accounting Net Income is determined by applying Generally Accepted Accounting Principles.

Question

Quizplus · Accepted Answer

Net Income For Tax Purposes does not require costs to be matched with revenues, as tax rules may allow for different methods of depreciation and expense deduction than those used in accounting.

Which of the Following Statements with Respect to the Relationship