GAAP requires a disclosure that reconciles a company's effective income tax rate and the U.S.statutory income tax rate.

Name: GAAP requires a disclosure that reconciles a company's effective income tax rate and the U.S.statutory income tax rate.
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Question

Quizplus · Accepted Answer

This is a requirement under GAAP in order to provide transparency and consistency in financial reporting. The disclosure should explain the differences between the two rates, including items such as tax credits, deductions, and adjustments.

GAAP Requires a Disclosure That Reconciles a Company's Effective Income