Which Statement Is CORRECT Regarding Accounting for Income Taxes in a Financial

question 14

Multiple Choice

Which statement is CORRECT regarding accounting for income taxes in a financial statement?

• A)The income tax provision includes only the taxes paid for that reporting period.
• B)Items of income and expense are treated the same for book and tax purposes as reflected in the financial statement.
• C)Accounting for income taxes does not incorporate the deferred tax model.
• D)Accounting for income taxes must reflect the differences between financial statement and tax return reporting.