Question

accounting principle of current tax liability
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Answer 1

This principle states that a current tax liability or asset should be recognized using taxes payable -- a balance sheet account -- in the year the liability is created, which may create a temporary difference in the amount of taxes paid to the IRS and the amount of taxes shown on the income statement.

Answer 2

Answer:

a balance sheet account in the year the liability is created, which may create a temporary difference in the amount of taxes paid to the IRS and the amount of taxes shown on the income statement.