Income taxes shown on the income statement are based on

Question

Quizplus · Accepted Answer

Income taxes shown on the income statement are based on income before taxes. This is because income taxes are calculated on the taxable income of a company, which is the income after deducting expenses but before subtracting income taxes. The income taxes shown on the income statement represent the amount of income tax expense that the company has incurred in the given period based on its income before taxes.

Income Taxes Shown on the Income Statement Are Based on