When there is a difference in the timing of revenues and expenses for accounting versus income tax purposes, it usually is necessary to

Question

Quizplus · Accepted Answer

When there is a difference in the timing of revenues and expenses for accounting versus income tax purposes, companies need to perform income tax allocation procedures to adjust taxable income. This ensures that the company is reporting both financial and tax information accurately and in compliance with applicable regulations. Adjusting accounting income or doing nothing are not appropriate actions in this scenario.

When There Is a Difference in the Timing of Revenues