I have learned about how difficulted for companies reporting their income tax and why deferred tax will happen. Income tax significantly affect analysis of a firm, almost every transaction affecting net income has an income tax effect, income expense under accrual accounting does not necessarily equal income taxes owed. Here have two reasons why income tax reported different?

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The two main reasons why reported income tax can differ from income expense under accrual accounting are Timing Differences Accrual accounting recogni... View the full answer