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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Policy Decisions

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Marketable Securities

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