The tax expense for the financial statements often agrees with the taxes payable.

Question

Quizplus · Accepted Answer

Tax expense for financial statements and taxes payable may differ due to accounting and tax rules differences, timing differences, estimates, and other factors. The tax expense represents the amount of income taxes owed based on accounting rules while taxes payable represent the actual taxes owed based on current tax laws and regulations.

The Tax Expense for the Financial Statements Often Agrees with the Taxes