Say your company calculates its income tax expense at $10,000. But its actual tax bill comes out to $8,000. You report the expense of $10,000 and denotes $8,000 as income tax payable.

What’s the Difference Between a Psychologist and Therapist? How to Choose. Medically reviewed by Joslyn Jelinek, LCSW, ACSW, RDDP — Written by Kristeen Cherney — Updated on May 27, 2025.

In casual conversation, raw materials and supplies for your company can mean the same thing. If, say, iron ore is one of the materials you use, it would be normal to talk about finding a supply of it.