Why Is Corporate Income Tax in Germany Based on Financial

question 48

Multiple Choice

Why is corporate income tax in Germany based on financial accounting income?

• A)Germany had rules for financial accounting before it had a corporate income tax.
• B)The German Accounting Standards Board has more authority than the Bundestag.
• C)German financial accounting standards reflect true economic income.
• D)Germany was following the practice set by the United Kingdom.

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