Which of the Following Arguments Is Supportive of Allocation of Income

question 65

Multiple Choice

Which of the following arguments is supportive of allocation of income taxes?

• A) Future predictions of net income are enhanced when income taxes are allocated.
• B) Income tax expense computed under interperiod tax allocation is a better predictor of future cash flows than income taxes actually paid.
• C) Income tax is not an expense;it is a sharing of profits with government.
• D) Income tax expense based on actual payments is more understandable to users than allocated income taxes.

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Definitions:

Grammar

The set of structural rules governing the composition of clauses, phrases, and words in a natural language.

Brainstorming

An approach meant to elicit numerous ideas through group collaboration to tackle a problem.

Focused Freewriting

A writing strategy that involves continuous, non-stop writing focused on a specific topic or prompt to generate ideas and thoughts.

Sherman High School

A general term that could refer to any high school named after someone surnamed Sherman, without a specific location or context.