Question

true or false: income tax expense recognized each period should be based on the accrual concept, regardless of when the tax laws require the tax to be paid. true false question. true false

Answer 1

Income tax expense should indeed be recognized based on the accrual concept, reflecting the economic events in the period they occur regardless of the actual tax payment date.

Step-by-step explanation:

The question of whether income tax expense recognized each period should be based on the accrual concept is true. According to accrual accounting principles, expenses should be recognized when they are incurred, not necessarily when they are paid. This includes income tax expense, which should be accounted for in the period in which the income was earned, even if the actual payment of taxes occurs at a later date. This accounting treatment aligns with the concept that financial statements should reflect the economic events that take place during a period regardless of when cash transactions occur.