The difference in objectives of GAAP accounting and tax accounting methods.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 17, Problem 17.1Q

To determine

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Expert Solution & Answer

Answer to Problem 17.1Q

The income tax expenditure shown on financial statements of the company does not similar to the income taxes paid in actual by the company during the year. This difference arises because of the difference in objectives of GAAP (Generally accepted accounting principles) and the tax accounting.

Explanation of Solution

GAAP Accounting

Generally accepted accounting principles includes the set of accounting standards, principles and procedures that is followed by the companies for final report of financial statements.

Tax Accounting:

Tax Accounting includes accounting methods and principles related to taxation rather than for report of financial statements of the company.

There is a difference in objectives of GAAP accounting and the Tax accounting. The main objective of GAAP accounting is to provide information related to the financial statements of the companies. In contrast to this, Tax accounting focuseson maximization of the tax revenue, achieve economic objectives and promote social objectives.

Conclusion

The income tax expense and the income tax payable are not same due to the difference in objectives of GAAP accounting and Tax accounting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is the companys gross profit?

Radium Tech Inc. has net sales of $320,000, cost of goods sold of $210,000, selling expenses of $15,000, and non-operating expenses of $6,000. What is the company's gross profit?

Please given True answer general Accounting

Answer 2

Question

Chapter 17, Problem 17.1Q

To determine

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Expert Solution & Answer

Answer to Problem 17.1Q

The income tax expenditure shown on financial statements of the company does not similar to the income taxes paid in actual by the company during the year. This difference arises because of the difference in objectives of GAAP (Generally accepted accounting principles) and the tax accounting.

Explanation of Solution

GAAP Accounting

Generally accepted accounting principles includes the set of accounting standards, principles and procedures that is followed by the companies for final report of financial statements.

Tax Accounting:

Tax Accounting includes accounting methods and principles related to taxation rather than for report of financial statements of the company.

There is a difference in objectives of GAAP accounting and the Tax accounting. The main objective of GAAP accounting is to provide information related to the financial statements of the companies. In contrast to this, Tax accounting focuseson maximization of the tax revenue, achieve economic objectives and promote social objectives.

Conclusion

The income tax expense and the income tax payable are not same due to the difference in objectives of GAAP accounting and Tax accounting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 17, Problem 17.1Q

To determine

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Expert Solution & Answer

Answer to Problem 17.1Q

The income tax expenditure shown on financial statements of the company does not similar to the income taxes paid in actual by the company during the year. This difference arises because of the difference in objectives of GAAP (Generally accepted accounting principles) and the tax accounting.

Explanation of Solution

GAAP Accounting

Generally accepted accounting principles includes the set of accounting standards, principles and procedures that is followed by the companies for final report of financial statements.

Tax Accounting:

Tax Accounting includes accounting methods and principles related to taxation rather than for report of financial statements of the company.

There is a difference in objectives of GAAP accounting and the Tax accounting. The main objective of GAAP accounting is to provide information related to the financial statements of the companies. In contrast to this, Tax accounting focuseson maximization of the tax revenue, achieve economic objectives and promote social objectives.

Conclusion

The income tax expense and the income tax payable are not same due to the difference in objectives of GAAP accounting and Tax accounting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 17.1Q

To determine

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Expert Solution & Answer

Answer to Problem 17.1Q

The income tax expenditure shown on financial statements of the company does not similar to the income taxes paid in actual by the company during the year. This difference arises because of the difference in objectives of GAAP (Generally accepted accounting principles) and the tax accounting.

Explanation of Solution

GAAP Accounting

Generally accepted accounting principles includes the set of accounting standards, principles and procedures that is followed by the companies for final report of financial statements.

Tax Accounting:

Tax Accounting includes accounting methods and principles related to taxation rather than for report of financial statements of the company.

There is a difference in objectives of GAAP accounting and the Tax accounting. The main objective of GAAP accounting is to provide information related to the financial statements of the companies. In contrast to this, Tax accounting focuseson maximization of the tax revenue, achieve economic objectives and promote social objectives.

Conclusion

The income tax expense and the income tax payable are not same due to the difference in objectives of GAAP accounting and Tax accounting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 17.1Q

To determine

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Expert Solution & Answer

Answer to Problem 17.1Q

The income tax expenditure shown on financial statements of the company does not similar to the income taxes paid in actual by the company during the year. This difference arises because of the difference in objectives of GAAP (Generally accepted accounting principles) and the tax accounting.

Explanation of Solution

GAAP Accounting

Generally accepted accounting principles includes the set of accounting standards, principles and procedures that is followed by the companies for final report of financial statements.

Tax Accounting:

Tax Accounting includes accounting methods and principles related to taxation rather than for report of financial statements of the company.

There is a difference in objectives of GAAP accounting and the Tax accounting. The main objective of GAAP accounting is to provide information related to the financial statements of the companies. In contrast to this, Tax accounting focuseson maximization of the tax revenue, achieve economic objectives and promote social objectives.

Conclusion

The income tax expense and the income tax payable are not same due to the difference in objectives of GAAP accounting and Tax accounting.

Answer 6

Chapter 17, Problem 17.1Q

To determine

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Expert Solution & Answer

Answer to Problem 17.1Q

The income tax expenditure shown on financial statements of the company does not similar to the income taxes paid in actual by the company during the year. This difference arises because of the difference in objectives of GAAP (Generally accepted accounting principles) and the tax accounting.

Explanation of Solution

GAAP Accounting

Generally accepted accounting principles includes the set of accounting standards, principles and procedures that is followed by the companies for final report of financial statements.

Tax Accounting:

Tax Accounting includes accounting methods and principles related to taxation rather than for report of financial statements of the company.

There is a difference in objectives of GAAP accounting and the Tax accounting. The main objective of GAAP accounting is to provide information related to the financial statements of the companies. In contrast to this, Tax accounting focuseson maximization of the tax revenue, achieve economic objectives and promote social objectives.

Conclusion

The income tax expense and the income tax payable are not same due to the difference in objectives of GAAP accounting and Tax accounting.

Answer 7

Chapter 17, Problem 17.1Q

To determine

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Answer 8

Expert Solution & Answer

Answer to Problem 17.1Q

The income tax expenditure shown on financial statements of the company does not similar to the income taxes paid in actual by the company during the year. This difference arises because of the difference in objectives of GAAP (Generally accepted accounting principles) and the tax accounting.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

GAAP Accounting

Generally accepted accounting principles includes the set of accounting standards, principles and procedures that is followed by the companies for final report of financial statements.

Tax Accounting:

Tax Accounting includes accounting methods and principles related to taxation rather than for report of financial statements of the company.

There is a difference in objectives of GAAP accounting and the Tax accounting. The main objective of GAAP accounting is to provide information related to the financial statements of the companies. In contrast to this, Tax accounting focuseson maximization of the tax revenue, achieve economic objectives and promote social objectives.

Answer 12

Conclusion

The income tax expense and the income tax payable are not same due to the difference in objectives of GAAP accounting and Tax accounting.

Answer 13

Ch. 17 - Prob. 17.1Q Ch. 17 - When will income tax expense and income taxes...Ch. 17 - Will permanent differences cause the effective tax...Ch. 17 - When do permanent differences arise?Ch. 17 - How are deferred tax assets and deferred tax...Ch. 17 - Prob. 17.6Q Ch. 17 - Prob. 17.7Q Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - How does a firm determine the need for a valuation...

The difference in objectives of GAAP accounting and tax accounting methods.

To explain: The difference in objectives of GAAP accounting and tax accounting methods.

Answer to Problem 17.1Q

Explanation of Solution

Want to see more full solutions like this?

Chapter 17 Solutions