Permanent Differences Include Items That Appear in the Federal Income

question 101

True/False

Permanent differences include items that appear in the Federal income tax return as income or deduction and in the
GAAP financial statements as revenue or expense but in different reporting periods.

---

Definitions:

Denial

A defense mechanism in which confrontation with a personal problem or with reality is avoided by denying the existence of the problem or reality.

Displacement

In psychology, displacement is a defense mechanism where a person redirects a negative emotion from its original source to a safer, substitute target.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.

Displacement

A defense mechanism where an individual shifts emotional impulses from an undesirable object or person to a more acceptable one.