Tax Expense

Dictionary Says

Definition of 'Tax Expense'

A liability owing to federal, state/provincial and municipal governments. Tax expenses are calculated by multiplying the appropriate tax rate of an individual or business by their income before taxes, after factoring in such variables as non-deductible items, tax assets and tax liabilities.
Investopedia Says

Investopedia explains 'Tax Expense'

Determining the appropriate tax rate and identifying the correct accounting methods for items affecting one's tax expense are carefully described by tax authorities such as the IRS and GAAP/IFRS.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Income Tax Payable

    A type of ...
  2. Balance Sheet

    A financial ...
  3. Tax Liability

    The total amount ...
  4. Tax Rate

    The percentage ...
  5. Tax Credit

    An amount of ...
  6. Tax Deduction

    A deduction from ...
  7. Generally Accepted Accounting ...

    The common set ...
  8. International Financial Reporting ...

    A set of ...
  9. Liability

    A company's ...
  10. Conditional Sales Agreement

    A lease ...

Articles Of Interest

  1. Financial Statements: Cash Flow

    Learn what it means to do your homework on a company's performance and reporting practices before investing.
  2. Financial Statements: Earnings

    Learn what it means to do your homework on a company's performance and reporting practices before investing.
  3. Accounting Basics: Financial Statements

    What is accounting? Learn about the different branches of this essential career.
  4. Profitability Indicator Ratios: Effective Tax Rate

    Learn about profit margin analysis, effective tax rate, return on assets, return on equity and return on capital employed.
  5. EVA: Calculating NOPAT

    Discover the simplicity of this important valuation metric. We reveal its underlying ideas and examine each of its components.
  6. The Impact Of Combining The U.S. GAAP And IFRS

    The convergence of accounting standards is changing the attitudes of CPAs and CFOs toward harmonization of international accounting.
  7. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  8. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  9. CPA, CFA Or CFP® - Pick Your Abbreviation Carefully

    A couple of letters can mean a big difference. Find out which designation you need and how to get it.
  10. Using Enterprise Value To Compare Companies

    Learn how enterprise value can help investors compare companies with different capital structures.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center