Income tax payable is the amount of money that a person or organization owes to the government in taxes, based on their income. This can be calculated by subtracting any taxes that have already been paid from the total amount of taxes owed. For individuals, income tax payable is typically calculated using a tax return form. For businesses, income tax payable is typically calculated using financial statements. Where does income tax payable go on a balance sheet? Income tax payable is recorded on the balance sheet as a liability.
Is tax payable an expense?
Yes, tax payable is considered an expense. This is because tax payable represents the amount of money that a company owes in taxes to the government. When a company incurs an expense, it reduces its net income. Therefore, tax payable is an expense because it reduces a company's net income.
Why is income tax necessary?
There are many reasons why income tax is necessary. One reason is that it is needed to fund government programs and services. Without income tax, the government would not be able to provide these things. Another reason is that income tax is used to help reduce inequality. It does this by taking money from people who have more money and giving it to people who have less money. This helps to even things out a bit and make society fairer. Is tax payable A current liabilities? No, tax payable is not a current liability. What is income before income tax? Income before income tax is an individual's total income from all sources before any income taxes have been deducted. This includes wages, investments, and other types of income. It is also sometimes referred to as "gross income."