Question

Income tax expense is recorded with the operating expenses on the income statement for a corporation....

Income tax expense is recorded with the operating expenses on the income statement for a corporation.

True or False

TrueFalse

Business   Accounting   
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Homework Answers

Answer #1

The given statement is True.

Supporting explanations:

Income tax expense is calculated on the income after deducting all the operating expenses like salaries expense, rent expense, depreciation expense and other selling & administrative expenses etc. in the income statement so the income tax expense is recorded with the operating expenses on the income statement.

The format of the same is shown below -

Income Statement
Sales Revenue XXXX
Less: Cost of goods sold XXXX
Gross Margin XXXX
Less: Operating Expenses XXXX
Income before income tax XXXX
Less: Income Tax Expense XXXX
Net Income XXXX

Therefore, the given statement is True.

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