A Major Distinction Between Temporary and Permanent Differences Is

question 111

Multiple Choice

A major distinction between temporary and permanent differences is

• A) permanent differences are not representative of acceptable accounting practice.
• B) temporary differences occur frequently, whereas permanent differences occur only once.
• C) once an item is determined to be a temporary difference, it maintains that status; however, a permanent difference can change in status with the passage of time.
• D) temporary differences reverse themselves in subsequent accounting periods, whereas permanent differences do not reverse.

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Definitions:

Avoidance

A defensive mechanism where an individual steers clear of certain thoughts, feelings, or interactions due to perceived negative outcomes.

Centration

A term from Piaget's theory of cognitive development, describing the tendency to focus on one aspect of a situation while neglecting others.

Decentering

The cognitive ability to consider multiple aspects of a situation rather than focusing on a single perspective.

Conservation

The act of preserving, protecting, or restoring natural environments and their wildlife.