The Deferred Tax Account Should Reflect Permanent Differences but Not

question 67

True/False

The Deferred Tax account should reflect permanent differences but not items that are temporary differences between book accounting and tax reporting.

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Definitions:

External Rotation

A movement or exercise where a limb or part of the body is rotated away from the center of the body, often used in physical therapy and fitness.

Abduction

Movement away from the body.

Ice Pack

A portable bag filled with ice or refrigerant gel used to reduce swelling, relieve pain, or decrease inflammation by applying cold temperatures to affected areas.

Swelling

An enlargement of a body part caused by an accumulation of fluid or inflammation in tissues.