Which of the following statements regarding tax is least likely appropriate?
Taxable income is the income subject to tax base on the tax return.B.
Taxes payable is the tax liability on the balance sheet caused by taxable income.C.
Pretax income can always be calculated by income tax expense dividing tax rate.
C is correct.
There may be a temporary or permanent difference between pretax income and taxable income. In this case, the equation about pretax income and income tax expense does not work.
考虑税收调整后的税率叫 有效/实际税率（effective tax rate）
但是它含有的10块钱的免税收入， 那么它的income expense = 90*40% =36。
这样它税前收入就不等于income expense / tax rate了。
实际税率 = 90*40%/100 = 36%
A.Taxable income is the income subject to tax base on the tax return.
——个人理解，taxable income = taxable revenues- tax deductible expenses，不涉及tax base；
B.Taxes payable is the tax liability on the balance sheet caused by taxable income.
Taxes payable = Taxable income * tax rate