NAC706.855. Income statement accounts.

     1. The account for net income before federal taxes is an income statement account reflecting the difference between the total of all income accounts and the total of all expenses, before arriving at a figure for the federal income tax.

     2. The account for federal income taxes on earnings includes the amount of federal income tax expense incurred by the taxicab company during the accounting period. Concurrent credits for tax accruals must be made to the account for accrued federal income taxes described in NAC 706.801. As the exact amount of taxes becomes known, the current tax expense must be adjusted accordingly, so that this account includes, in each year, the applicable taxes.

     3. The account for net income after federal taxes is an income account reflecting net earnings after giving effect to federal taxes.

     4. The dividends account includes the amount of dividends paid or declared by the company during the calendar year. The account for dividends payable described in subsection 2 of NAC 706.798 must be set up as a liability whenever such dividends are declared.

     [Taxicab Auth., Uniform System of Accounts Reg. §§ 991-1000, eff. 11-16-79]