Which of the following statements is not correct?
A. Temporary differences causing taxable income in future periods to be lower than book income in future periods create deferred tax assets.
B. Temporary differences causing taxable income in future periods to be higher than book income in future periods create deferred tax liabilities.
C. A permanent difference results when a revenue enters into the determination of book income in one period but affects taxable income in a different period.
D. A temporary difference causing book income to be less than taxable income when initially recorded is described as an originating difference.
Ans: C. A permanent difference results when a revenue enters into the determination of book income in one period but affects taxable income in a different period
You might also like to view...
The particular type of appeal that should be used in an advertisement should be based on a review of the creative brief, the objective of the advertisement, and the means-end chain to be conveyed
Indicate whether the statement is true or false
If an individual's case is not heard by an agency because the individual missed the
agency's filing deadlines, the doctrine of exhaustion of remedies may preclude judicial review. a. True b. False