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:

Stress

(1) Physical or psychological demands on a person or organism. (2) Response to physical or psychological demands.

Adapt Thinking

The process of adjusting one's thoughts and cognitive processes in response to new information or environments.

Growth

An increase in size, number, value, or strength.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.