Misconception · MIS:taxes-paid-equals-tax-expense

Mistaken idea “Taxes paid equals tax expense”

Mistaken reasoning: This mistake substitutes cash for accrual accounting in the note.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Reconcile cash paid net of refunds from cash records and disaggregate it independently from expense and payable.

Where to watch

When this mistake may appear

  • Cash payments are available.
Check your work

Your work may contain this mistake if:

  • Copy tax expense into the taxes-paid disclosure.