8. Intraperiod tax allocation a. is used to allocate a company\'s total income t

Question

8. Intraperiod tax allocation

a.

is used to allocate a company's total income tax expense to the components of net income and retained earnings

b.

involves temporary (timing) differences between financial and taxable incomes

c.

requires allocation of deferred taxes across accounting periods

d.

results from differences between tax regulations and the principles followed to determine financial income.

a.

is used to allocate a company's total income tax expense to the components of net income and retained earnings

b.

involves temporary (timing) differences between financial and taxable incomes

c.

requires allocation of deferred taxes across accounting periods

d.

results from differences between tax regulations and the principles followed to determine financial income.

Explanation / Answer

Answer is (a)

is used to allocate a company's total income tax expense to the components of net income and retained earnings

because

An intraperiod tax allocation is the allocation of income taxes to different parts of the results appearing in the income statement of a business, so that some line items are stated net of tax. this arise in case of

In this way this concept allocate the a company's total income tax expense to the components of net income,comprehensive income, and retained earnings

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