A corporation's effective tax rate as computed in its income tax note is the company's cash tax rate for the year.
The accounting ETR is the provision (benefit) divided by pretax income from continuing operations.

Question

Quizplus · Accepted Answer

The accounting ETR is the provision (benefit) divided by pre-tax income, not just from continuing operations. Therefore, it may differ from the company's cash tax rate for the year.

A Corporation's Effective Tax Rate as Computed in Its Income