When tax expense equals current taxes payable to the IRS plus (minus)the increase (decrease)in deferred tax liabilities,tax expense is properly matched for the

Question

Quizplus · Accepted Answer

Tax expense should be properly matched with the current period to reflect the taxes owed or paid for the current financial year. By including the current taxes payable to the IRS, and adjusting for changes in deferred tax liabilities, tax expense is accurately matched for the current period. Therefore, option A is correct. Options B, C, and D are incorrect because tax expense should be matched with the current period, not the previous or future periods or the tax return.

When Tax Expense Equals Current Taxes Payable to the IRS