Under comprehensive allocation, the tax liability is equal to the income expense for the period.

Question

Quizplus · Accepted Answer

Comprehensive allocation is a method of recognizing and allocating taxes on a pro-rata basis over several years, rather than recognizing them all at once in the year they are incurred. The tax liability is not necessarily equal to the income expense for the period, as it depends on the specific tax laws and regulations applicable to the entity.

Under Comprehensive Allocation, the Tax Liability Is Equal to the Income