asked 79.8k views
0 votes
Provision for income taxes" is the label for income tax expense?a. True b. False

1 Answer

6 votes

Answer: True

Step-by-step explanation:

The Provision for income taxes is the account that records the amount that the company expects that it will pay in taxes for the relevant period.

This balance is arrived at after the net income is derived and then adjusted for the various differences be they permanent or temporary. After that is done the relevant tax rate is applied on the balance and this will be the amount that the company will expect as pay for income tax expense.

answered
User Ahatius
by
8.0k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.