Question

Under the provision for income taxes and the effective tax rate, companies disclose all of the following except:

a) Current income tax expense
b) Deferred income tax expense
c) Total revenue
d) Changes in deferred tax assets and liabilities
e) Effective tax rate

Answer 1

In provisions for income taxes, companies disclose current and deferred income tax expenses, changes in deferred tax assets and liabilities, and their effective tax rate. However, 'Total revenue' is not disclosed as part of this provision.

Step-by-step explanation:

Under the provision for income taxes and the effective tax rate, companies must disclose various information related to their tax expenses. This disclosure includes items such as the current income tax expense, which is the tax on income earned in the current year, and the deferred income tax expense, which relates to future tax liabilities or assets. Additionally, companies must report changes in deferred tax assets and liabilities, and provide information about their effective tax rate. However, the item that companies do not disclose as part of this provision is c) Total revenue. Total revenue pertains to the gross income received from all sources before any deductions or expenses are considered, and while it is an important figure in financial reporting, it is not specifically tied to the tax provisions under discussion.