Which of the Following Statements Regarding the Tax- Payable Method

question 6

Multiple Choice

Which of the following statements regarding the tax- payable method is incorrect?

• A)the income tax expense for the period is the same amount as the income tax payable for the same period
• B)a balance day adjustment is recorded for income tax based on an estimate of taxation liability at the end of the financial year
• C)the income tax expense for the period is different to the income tax payable for the same period
• D)it is based on the proposition that the amount that has to be paid to the ATO is an appropriation of profits by governments