Misconception · MIS:tax-payable-equals-tax-expense

Mistaken idea “Income taxes payable equals income tax expense”

Mistaken reasoning: This mistake confuses a balance sheet amount with a period measure.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Current payable is a rollforward balance; total expense includes current, deferred, uncertainty, and allocation effects.

Where to watch

When this mistake may appear

  • A tax entry is requested.
Check your work

Your work may contain this mistake if:

  • Credit payable for total tax expense and omit deferred and payment effects.