Interperiod income tax allocation:
A)Involves the allocation of income taxes on certain taxable items of the same period.
B)Generally has no effect on the balance sheet.
C)Arises because certain revenues and expenses appear in the financial statements either before or after they are included on the income tax return.
D)Involves only items appearing below income from continuing operations in the income statement.

Question

Quizplus · Accepted Answer

Interperiod income tax allocation arises because certain revenues and expenses appear in the financial statements either before or after they are included on the income tax return. This affects the balance sheet as well as the income statement, and includes items above and below income from continuing operations.

Interperiod Income Tax Allocation