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Tax Accounting Facts

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Which one is not correct in the context of tax accounting:

Deferred tax liability might result when tax expense on an income statement is less than tax payment based on the tax code.

Corporate income tax is an expense, not a distribution of the profits to the government.

Non taxable expenses cause permanent differences between pretax accounting income and taxable income.

Deferred tax assets might be resulted from Loss Carryback.


Solution Summary

This solution explains which statement is not correct in the context of tax accounting.