Which of the following does not help in explaining why (1)and (2)are different: (1)Income tax expense
(2)The product of pre-tax income and the current tax rate.

Question

Quizplus · Accepted Answer

The fact that future and current tax rates are different may explain differences in income tax expense and the product of pre-tax income and the current tax rate. Therefore, it does not help in explaining why they are different. The other choices, such as permanent and temporary differences, a change in the effective tax rate, could all be factors contributing to the difference between the two.

Which of the Following Does Not Help in Explaining Why