Intraperiod tax allocation
A)arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return.
B)is required for the cumulative effect of changes in accounting principles but not for discontinued operations.
C)allocates income tax expense evenly over a number of accounting periods.
D)relates income tax expense to the items which affect the amount of tax.

Question

Quizplus · Accepted Answer

Intraperiod tax allocation is the process of relating income tax expense to specific items that affect the amount of tax, such as differences between book income and taxable income. It ensures that income tax expense is properly matched to the appropriate period's income statement, in accordance with the matching principle. Therefore, option D is the correct answer. Options A, B, and C are incorrect because they do not accurately describe intraperiod tax allocation.

Intraperiod Tax Allocation