A Characteristic of the Taxes Payable Method Is That

question 96

Multiple Choice

A characteristic of the taxes payable method is that:

• A)It is mandatory for private companies.
• B)Tax owed for the period will equal accounting income tax expense.
• C)The matching principle is respected.
• D)Inter-period income tax allocation is applied to some types of temporary differences but not all.

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Definitions:

Withdraw

The act of formally leaving a particular status or position, such as removing oneself from a legal case or retracting a statement.

Limited Partnerships

Business arrangements where at least one partner has unlimited liability while others have liability limited to the extent of their investments.

General Partners

Individuals in a partnership who are responsible for managing the business and are personally liable for the partnership's debts.

Limited Liability

A legal structure where a company's owners are protected from personal responsibility for the company’s debts or liabilities, beyond the amount of their investment in the company.