Generally income tax accounting methods are designed to result in
I.a proper matching of expenses to the revenues being generated.
II.a denial of a current deduction for costs that will not have to be paid in the near future.

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 matching of expenses to the revenues being generated.
II.a denial of a current deduction for costs that will not have to be paid in the near future.
​
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 often focus on the timing of deductions and income recognition, which may not necessarily align with the matching principle used in financial accounting. Statement II is correct as tax accounting may deny current deductions for costs that are not immediately payable.

Generally Income Tax Accounting Methods Are Designed to Result in