As long as actual tax expense does not materially differ from estimated tax expense, a corporation may record the difference in the subsequent year and not violate the matching principle in so doing.

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This statement is true. As per the matching principle, expenses should be recognized in the same period as related revenues. However, if the estimated tax expense does not materially differ from the actual tax expense, the corporation may record the difference in the subsequent year. This is because the materiality concept allows for certain items to be recorded in future periods if their impact on the financial statements is not significant. Therefore, if the difference between estimated tax expense and actual tax expense is immaterial, recording it in the subsequent year does not violate the matching principle.

As Long as Actual Tax Expense Does Not Materially Differ