Starstruck Co estimated that its income tax liability for the year ended 30 September 20X6was $15,000. The income tax charge disclosed in the statement of profit or loss for the yearended 30 September 20X6 was $14,200.Which of the following statements is true?A The difference between the statement of profit or loss charge and the liability in thestatement of financial position is the result of an adjustment relating to an underprovision in an earlier year.B The difference between the statement of profit or loss charge and the liability in thestatement of financial position is the result of an adjustment relating to anoverprovision in an earlier year.C It is not possible to state whether the difference between the statement of profit orloss charge and the liability in the statement of financial position is due to anunderprovision or overprovision in an earlier yearD There is no relationship between the amounts included in the statement of financialposition and statement of profit or loss relating to income tax

Then try StudyFetch, the AI-powered platform that can answer your questions and teach you more about it!