Income taxableentitiesincome taxexpensecomputed

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Unformatted text preview: taxable entities. Income taxable entities. Income tax expense computed tax expense computed as Income Before as Income Before Income Taxes × Tax Income Taxes × Tax Rate (Federal, State, Rate (Federal, State, Local and Foreign). Local and Foreign). 3-4 Cash Basis Accounting Revenue is recorded Revenue is recorded when cash is received. when cash is received. Expenses are recorded Expenses are recorded when cash is paid. when cash is paid. 3-5 Accrual Accounting Assets, liabilities, revenues, and expenses should be Assets, liabilities, revenues, and expenses should be recognized when the transaction that causes them recognized when the transaction that causes them occurs, not nece...
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