A corporation may report a net income amount for federal income tax purposes that differs from the amount reported for financial accounting purposes.

Question

Quizplus · Accepted Answer

This is true because tax laws and accounting principles can have different rules regarding what income and expenses are recognized, how they are valued, and when they are recognized. This can lead to differences between the net income reported on the company's tax return and the net income reported on its financial statements.

A Corporation May Report a Net Income Amount for Federal