Which of the following is true about intraperiod tax allocation?
A) It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return.
B) It is required for extraordinary items and cumulative effect of accounting changes but not for prior period adjustments.
C) Its purpose is to allocate income tax expense evenly over a number of accounting periods.
D) Its purpose is to relate the income tax expense to the items which affect the amount of tax.

Question

Quizplus · Accepted Answer

Intraperiod tax allocation is used to match the income tax expense with the specific items that affect the taxable income in the period they occur, ensuring that the financial statements accurately reflect the tax implications of those items.

Which of the Following Is True About Intraperiod Tax Allocation