Question

Provision for income taxes" is the label for income tax expense?a. True b. False

Answer 1

Answer: True

Explanation:

The Provision for income taxes is the account that records the amount that the company expects that it will pay in taxes for the relevant period.

This balance is arrived at after the net income is derived and then adjusted for the various differences be they permanent or temporary. After that is done the relevant tax rate is applied on the balance and this will be the amount that the company will expect as pay for income tax expense.