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Basic Question 8 of 13
Reported effective tax rate is equal to ______.
B. income tax expense / taxable income
C. income tax expense / accounting profit
A. taxes payable / taxable income
B. income tax expense / taxable income
C. income tax expense / accounting profit
User Contributed Comments 4
| User | Comment |
|---|---|
| mattg | Key word: REPORTED i.e. reported on financial statements |
| Seal | Effective Tax Rate = inc tax exp / pre tax inc Reported Effective Tax Rate = inc tax exp / Accounting Profit. Is accounting profit same as pre tax inc? |
| johntan1979 | Yes, acct prof = pre tax inc And nope to mattg. Keyword is "effective". Answer A is statutory tax rate. |
| robbiecow | Accounting Profit = Total Revenue - (Cost of Good Sold + Operating Expenses +Taxes) |
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Learning Outcome Statements
explain how deferred tax liabilities and assets are created and the factors that determine how a company's deferred tax liabilities and assets should be treated for the purposes of financial analysis
CFA® 2025 Level I Curriculum, Volume 3, Module 9.