Companies Use Intraperiod Tax Allocation for All of the Following

question 2

Multiple Choice

Companies use intraperiod tax allocation for all of the following items except

• A) discontinued operations.
• B) prior period adjustments.
• C) changes in accounting estimates.
• D) income from continuing operations.

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Definitions:

Revenues and Gains

Measures of income for a business, where revenues come from primary operations and gains from secondary activities or the sale of assets.

Peripheral Activities

Secondary or non-core operations of a company that are not essential to its primary business functions.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and comparable.

Freight-out

The cost associated with transporting goods from the seller to the buyer, usually considered a selling expense.