Asked by shivangi thakur on Jun 09, 2024
Verified
The amount of income taxes recognized on the income statement but not yet payable to the government are found on the
A) balance sheet in the account Deferred Income Taxes.
B) balance sheet in the account Income Taxes Payable.
C) income statement in the account Income Tax Expense Current.
D) income statement in the account Income Tax Expense DeferreD.
Deferred Income Taxes
Taxes applicable to income that is recognized in the financial statements in one period but is taxable in another.
Income Taxes Payable
The amount of income taxes a company owes to the government that has not yet been paid.
Income Tax Expense
The total amount of income tax a company is obligated to pay to tax authorities, reported in its financial statements.
- Pinpoint and arrange the several types of liabilities and equity represented in the balance sheet.
Verified Answer
ML
miguel lopezJun 13, 2024
Final Answer :
A
Explanation :
Income taxes recognized on the income statement but not yet payable to the government are deferred income taxes. Therefore, the correct option is A) balance sheet in the account Deferred Income Taxes. Option B is incorrect because it refers to income taxes that are both recognized on the income statement and payable to the government. Option C is incorrect because it refers to income taxes that have been expensed in the current period. Option D is incorrect because it refers to income taxes that have been recognized but not yet expensed.
Learning Objectives
- Pinpoint and arrange the several types of liabilities and equity represented in the balance sheet.