Deferred tax expense is the: increase in a deferred tax asset. increase in a deferred tax liability. the amount of income taxes payable for the period. decrease in a deferred tax liability

increase in a deferred tax liability. More test answers on https://studyhippo.com/chapter-19-accounting-for-income-tax-56368/

A result of inter-period tax allocation is that: A. Large fluctuations in a company’s tax liability are eliminated. B. The income tax expense is allocated among the income statement items that caused the expense. C. The income tax expense in the income statement is the sum of the income taxes payable for the year and the changes in deferred tax asset or liability balances for the year. D. The income tax expense shown in the income statement is equal to the deferred taxes for the year.

C. The income tax expense in the income statement is the sum of the income taxes payable for the year and the changes in deferred tax asset or liability balances for the year. More test answers on https://studyhippo.com/acc-306-chapter-16-56271/

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Income Taxes Payable Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Income Taxes Payable and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Income Taxes Payable and get quick solutions for your test.

What is Income Taxes Payable?

Income taxes payable refer to taxes that a business or individual is obligated to pay on earned income. This includes any wages, salaries, commissions, bonuses, profits from investments and other forms of income. It is important to note that income tax payments are due on the day they are earned and not when the filing deadline arrives. The amount of taxes that must be paid will depend on the level of income earned and the applicable tax rates for that jurisdiction. For example, if an individual earns $100,000 in one year in the United States, then they would owe $27,000 in federal income taxes (assuming a 27% tax rate). Income taxes can be paid through a variety of methods including cash payments at a bank or check payments sent through mail. The most common method is to pay electronically via an online payment service such as PayPal or direct deposit into a taxpayer’s bank account. Taxpayers should ensure that all necessary information about their earnings is reported accurately so as to avoid penalties for underpayment or overpayment of taxes due. It’s important for businesses and individuals alike to stay up-to-date with changes in taxation laws since these can affect both how much they owe and when it needs to be paid by. Penalties may apply if taxpayers fail to comply with taxation laws or make late payments – so it pays off for taxpayers to stay informed.