- 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
Which of the following is the income that is used to compute the amount of taxes to be paid in a period?
B. Taxable income
C. Either one can be used.
A. Pretax accounting income
B. Taxable income
C. Either one can be used.
Correct Answer: B
Taxable income is the amount of income shown on the tax return; it is the income to be used in computing tax liability.
User Contributed Comments 5
| User | Comment |
|---|---|
| Yurik74 | The only question I got answered right : ))) |
| DannyZhou | Me too! |
| dipu617 | Me too!!!! ;-) |
| gulfa99 | mmm...i am not good at this...i dont pay taxes |
| Diruuk | Me Too!!!! |