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Basic Question 3 of 7
Generally accepted accounting principles (GAAP) require the recognition of future income tax assets and liabilities resulting from timing differences. If timing differences were ignored and tax expense was equal to current taxes payable, which accounting principle would be violated?
B. Comparability
C. Historical cost
D. Matching
A. Consistency
B. Comparability
C. Historical cost
D. Matching
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Learning Outcome Statements
contrast accounting profit, taxable income, taxes payable, and income tax expense and temporary versus permanent differences between accounting profit and taxable income
CFA® 2024 Level I Curriculum, Volume 3, Module 9.