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Needing a Certain Key to Open the Front Door of Your

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Needing a certain key to open the front door of your house is analogous to the


Definitions:

Income Tax Expense

The amount of income tax a company owes to federal, state, or local authorities, recognized as an expense in the period it is incurred.

Income Tax Payable

The amount of income tax a company owes to the government but has not yet paid.

Cash Paid

The total amount of cash disbursed by a business for various purposes, such as operating expenses, purchases, and investments.

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