Which of the following statements describes considerations that may be made by users of financial statements regarding a company's tax expense.

Question

Quizplus · Accepted Answer

All of the statements are true and are considerations that may be made by users of financial statements regarding a company's tax expense. The breakdown of tax expense between current and deferred may provide useful information regarding the comparison of tax burdens between companies. An analysis of earnings before interest, taxes, depreciation, and amortization (EBITDA) is often a better approach to comparing operating results of two companies. One-time effects within a company's effective tax rate should be removed before comparing effective tax rates across companies (or across years for the same company).

Which of the Following Statements Describes Considerations That May Be