More Introduction to Financial Accounting | Online Course Support

Which of the following cause the effective tax rate to not equal the statutory tax rate for a US company? (check all that apply)

 
 
 

Permanent differences cause the effective tax rate to not equal the statutory tax rate. Research tax credits and Non-US taxes are permanent differences because they could show up in the financial statements but not on the tax return. Bad debt expense, Depreciation expense, and Unearned revenue were all given as examples of temporary differences in the videos.

 

Permanent differences cause the effective tax rate to not equal the statutory tax rate. Research tax credits and Non-US taxes are permanent differences because they could show up in the financial statements but not on the tax return. Bad debt expense, Depreciation expense, and Unearned revenue were all given as examples of temporary differences in the videos.

 

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