What is Income Taxes Payable?
Income taxes payable is a liability for taxes which have to be paid to the government.
Income tax can arise on the profits of a business for the year, and any amount not paid by the end of the year would be classified as income tax payable.
The income taxes payable account in the accounting records, is normally classified as a current liability in the balance sheet as it is payable within one year.
For further information on income tax liabilities see the Wikipedia definition.
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