Which of the Following Is Incorrect Regarding the Income Tax

question 226

Multiple Choice

Which of the following is incorrect regarding the Income Tax Payable account?

• A)The account represents income tax incurred,but not yet paid by the company.
• B)This is a liability account.
• C)The adjusting entry involving this account also requires an entry to Income Tax Expense.
• D)The account represents tax refunds due to the company.

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Definitions:

Cognitive Dissonance Theory

A theory suggesting that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony (or dissonance).

Festinger

Refers to Leon Festinger, a social psychologist best known for his theory of cognitive dissonance, which describes the feelings of discomfort resulting from holding two conflicting beliefs.

Face-to-Face Interactions

Direct communication or exchange between people who are physically present in the same location.

Latin Americans

People from countries in Latin America, characterized by diverse cultural, ethnic, and historical backgrounds.