The exchange of goods or services for money isn't always simultaneous in the business world. When a service is provided without immediate compensation or money is received before goods are shipped, ...

Companies record both income tax expense and income tax payable in journal entries. For companies that use the cash basis for both financial and tax reporting, income tax expense equals income tax ...

An accrual has occurred but has not yet been paid for. This can include work or services that have been completed and considered accrued expenses. Interest that has been charged or accrued but not yet ...