The Adjusting Entry to Record Income Taxes at the End

question 87

Multiple Choice

The adjusting entry to record income taxes at the end of an unprofitable accounting period consists of a:

• A) Debit to Income Tax Expense and a credit to Income Tax Payable.
• B) Credit to Income Tax Expense and a debit to Income Tax Payable.
• C) Credit to Income Tax Receivable and a debit to Income Tax Expense.
• D) No adjusting entry is required for income taxes if there are no profits.

---

Definitions:

Viscous liquid

A thick and sticky fluid that has a high resistance to flow compared to a less viscous liquid.

Motor neurons

Nerve cells that transmit impulses from the spinal cord or brain to muscles or glands, enabling movements and actions.

Electrolytes

Minerals in the body that have an electric charge, such as sodium, potassium, and calcium, vital for various bodily functions including muscle contractions and the maintenance of fluid balance.

Nerve impulses

Bioelectric signals that transmit information along nerve fibers, facilitating communication within the nervous system.