Income tax allocation procedures are justified by which of the following basic concepts?

Question

Quizplus · Accepted Answer

Income tax allocation procedures are based on the matching principle, which requires that expenses be matched with the revenues they generate. Since income taxes are based on income generated during a specific period, income tax expense must be recognized in the same period that the income is recognized. This ensures that income tax expense is properly matched with the income it corresponds to.

Income Tax Allocation Procedures Are Justified by Which of the Following