Which of the Following Statements Regarding Book/tax Differences Is False

question 96

Multiple Choice

Which of the following statements regarding book/tax differences is false?

• A)A permanent book/tax difference affects only the year in which it occurs.
• B)A temporary book/tax difference affects two or more tax years.
• C)Temporary book/tax differences arising in the current tax year will reverse in the future in one or more tax years.
• D)The tax cost or benefit of a permanent book/tax difference is recouped over time.