Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
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) |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
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.