Final answer:
Intraperiod tax allocation, which associates the income tax expense with specific items impacting taxable income, is true and is important for accurately reporting financial statements.
Step-by-step explanation:
Intraperiod tax allocation is a method used in accounting to allocate income tax expenses to the specific items within a financial statement that caused the liability. It helps to accurately match the tax expense with the corresponding revenue or expense items. This ensures that the tax provision is allocated appropriately and reflects the actual tax impact of the items in a given period.
The statement that intraperiod tax allocation relates the income tax expense of the period to the specific items that give rise to the amount of the tax provision is true. Intraperiod tax allocation is a concept used in accounting to ensure that income tax expense is properly reported in the financial statements. It involves associating the tax expense with the items in the income statement that affect the taxable income, such as continuing operations, discontinued operations, and other comprehensive income. This approach ensures that users of financial statements understand how specific items have impacted the overall tax expense of a period.