- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 9. Analysis of Income Taxes
- Subject 1. Differences between Accounting Profit and Taxable Income
CFA Practice Question
Both accounting income and taxable income are measured in compliance with generally accepted accounting principles. True or False?
Correct Answer: False
User Contributed Comments 6
| User | Comment |
|---|---|
| vincenthuang | taxable income in compliance with IRC |
| sarath | taxable income is in compliance with the IRC..Internal Revenue Code.. |
| MattNYC | Taxable income uses modified cash basis accounting while Tax expense/Pre-tax income utilizes the accrual system. |
| gill15 | Compliance with IRC...thats not even found in the curriculum books..dont understand how you guys know this... never took accounting before..still...should be in the books. |
| poomie83 | IRC only in US. It is relevant tax body in each country |
| iiman | IRS in USA |