In this video, discover how a company's tax obligation can be deferred years into the future. This can help with cash flow, long-term planning, and growth.
- Corporations pay income taxes just like individuals do. … It's reported as the final expense in the income statement. … For example, in 2018, the final three lines … in Exxon Mobil's income statement appeared like this, … with all numbers shown in millions. … The $9.532 billion in income tax expense … reported by Exxon Mobil in 2018 … is not necessarily equal to the amount of cash paid … for income taxes during the year. … In fact, Exxon Mobil paid cash of $9.294 billion … for income taxes in 2018. … The difference between reported income tax expense … and the actual amount of cash paid for taxes … arises for two reasons. … First, as with many other expenses, … income taxes are not necessarily paid in cash … in the year in which they are incurred. … Because less cash than this was paid, … there was an increase in the income taxes payable liability … that remained at the end of 2018. … Now in a similar fashion, individuals usually pay … more or less income tax than they actually owe …
- Accounting basics
- Reviewing the balance sheet and income statement
- Credits, debits, and journal entries
- Making financial statements
- Issues in financial accounting
- Revenue recognition
- Deferring taxes
- Analyzing financial statements
Skill Level Beginner
Accounting Foundations: Internal Controlswith Kay Stice1h 46m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
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