Question

There is a difference between the income tax payable account and the income tax expense account in the financial statement of the sooners corporation which account attributes to this difference A. Depreciation
B. Petty cash on hand


C. Accounts payable


D. Size of land owned

Answer 1

C. Accounts Payable

Income tax expense is the amount that your company calculates for taxes, whereas income tax payable is the actual amount calculated by the IRS that the company owes which is recorded as a liability in accounts payable until the tax bill is paid off.