An Accrual Basis Taxpayer That Accrues a Liability at Year-End

question 39

True/False

An accrual basis taxpayer that accrues a liability at year-end for unpaid state income tax can deduct the accrued tax expense in the computation of federal taxable income.

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Definitions:

Sales Tax

A percentage of the sale price collected by the government on goods and services.

Purchase

The act of buying goods or services.

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables, and operators.

Verbal Phrase

A verbal phrase is a group of words expressing an action or a state of being, often used in mathematics to translate words into algebraic expressions or equations.