Misconception · MIS:current-tax-expense-equals-cash-paid

Mistaken idea “Current tax expense equals cash taxes paid”

Mistaken reasoning: This mistake collapses accrual and cash measures.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Payments can settle prior or current accruals. Reconcile expense, payable or receivable, payments, refunds, and settlements.

Where to watch

When this mistake may appear

  • Cash paid is available.
Check your work

Your work may contain this mistake if:

  • Use cash paid as current tax expense without a payable rollforward.