Which of the Following Is True About Intraperiod Tax Allocation

question 57

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 the 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.

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Definitions:

Costing

The process of determining the cost associated with producing or providing a product or service.

Mark-up

The variance between the price at which a good or service is purchased and its retail price, shown as a proportion of the purchase cost.

Selling Price

The amount of money for which something is sold, not necessarily equal to its cost to produce.

Coat

An outer garment worn outdoors, typically for warmth or as part of formal or casual attire.