Which of the Following Is True About Intraperiod Tax Allocation

question 13

Multiple Choice

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.

---

Definitions:

5C Model

A strategic framework that focuses on five key areas for business success: Company, Customers, Competitors, Collaborators, and Context.

Commitment

The level of dedication and loyalty an individual or group has towards tasks, objectives, or an organization, often manifesting in hard work and perseverance.

Compliance

Compliance with business-relevant laws, regulations, guidelines, and specifications.

Perennial Problem

A persistent or enduring issue that continues to exist or recur over a long period.