"Taxable amounts" include revenues and gains that are included in the tax return BEFORE they are recognized for accounting purposes.

Question

Quizplus · Accepted Answer

"Taxable amounts" include revenues and gains that are recognized for tax purposes when they are earned, regardless of when they are recognized for accounting purposes. The timing for tax recognition can differ from accounting recognition, but it's not accurate to say taxable amounts are included in the tax return before they are recognized for accounting purposes.

"Taxable Amounts" Include Revenues and Gains That Are Included in the Tax