Generally income tax accounting methods are designed to result in
I.a proper application of the wherewithal-to-pay concept.
II.a proper matching of expenses to the revenues being generated.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Generally income tax accounting methods are designed to result in
I.a proper application of the wherewithal-to-pay concept.
II.a proper matching of expenses to the revenues being generated.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Income tax accounting methods are primarily concerned with the wherewithal-to-pay concept, which focuses on the taxpayer's ability to pay taxes, rather than matching expenses to revenues, which is more relevant to financial accounting.

Generally Income Tax Accounting Methods Are Designed to Result in