Mistake About Terms Does NOT Include

question 98

Multiple Choice

Mistake about terms does NOT include

• A)the attribution by the parties of different meanings to words used in a contract.
• B)errors that are made in the recording of an agreement between parties.
• C)the error of judgment that a party makes when he or she enters into a bad contract.
• D)misunderstandings about the meanings of words used in a contract.
• E)words used inadvertently in stating the terms of a contract.

---

Definitions:

Temporary Difference

A discrepancy between the tax basis of an asset or liability and its carrying amount on the balance sheet, which will eventually settle and affect taxable income.

Book Income

A company's income as reported in its financial statements, representing the difference between revenues and expenses.

Income Tax Rate

The portion of a person's or company's earnings that is handed over to the state in the form of taxes.

Deferred Income Tax Liability

A tax obligation that a company owes but has not yet paid, resulting from temporary timing differences between its accounting earnings and its taxable income.