CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Intraperiod income tax allocation arises because ______

A. income taxes must be allocated between current and future periods.
B. certain revenues and expenses appear in the financial statements but are excluded from taxable income.
C. items included in the determination of taxable income may be presented in different sections of the financial statements.
D. certain revenues and expenses appear in the financial statements either before or after they are included in taxable income.
Correct Answer: C

Intraperiod tax allocation deals with allocating taxes between different lines on the income statement. Financial statements are reported in accordance with the nature of the revenues, expenses, gains, and losses that gave rise to the tax.

User Contributed Comments 5

User Comment
kalps Intraperiod tax allocation ----> allocating taxes between different lines on the income sttaement.
achu Choice B- Because certain revenues and expenses appear in the financial statements but are excluded from taxable income- is more suitable to describe DTA's and DTL's.
johntan1979 How does this differ from interperiod tax allocation?
Seancfa1 Intra is inside/within the same entity - eg: intranet or intra-comany transfer.

Inter is between/among - eg: internet, international, interpreter (someone who translates BETWEEN languages).
Seancfa1 Therefore, intra in this sense applies to within 1 period.

Inter applies between periods (multiple periods).
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