Differences Between the Carrying Amounts of an Entity's Net Assets

question 21

Multiple Choice

Differences between the carrying amounts of an entity's net assets determined under accounting standards and accrual accounting, and the tax bases of those net assets determined under the Income Tax Assessment Act, are known as:

• A) tax losses.
• B) temporary differences.
• C) permanent differences.
• D) the current income tax liability.

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Definitions:

Nearest 0.01%

Rounding a percentage to the closest one-hundredth of a percent.

Nearest 0.01%

Rounding a number or percentage to the closest hundredth of a percent for precision.

Emotions

Complex psychological states involving physiological arousal, feelings, cognitive processes, and behavioral reactions.

Feedback System

A process or mechanism by which information about the outcomes of actions is returned to the originator, enabling adjustment or improvement of future actions.