Which of the Following Statements About Tax Expense Per Books

question 81

Multiple Choice

Which of the following statements about tax expense per books and tax payable is false?

• A) If a corporation has no temporary differences between book income and taxable income, tax expense per books equals tax payable.
• B) If a corporation has no permanent differences between book income and taxable income, tax expense per books equals tax payable.
• C) Tax expense per books and tax payable are calculated from the same rate schedule.
• D) Firms compute total tax expense for financial statement purposes based on book income adjusted for permanent book/tax differences.

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