It Is Important to Distinguish Between Temporary and Permanent Book-Tax

question 98

Multiple Choice

It is important to distinguish between temporary and permanent book-tax differences for which of the following reasons?

• A)Temporary book-tax differences affect the computation of taxable income whereas permanent differences do not.
• B)All corporations are required to disclose book-tax differences as permanent or temporary on their tax returns.
• C)Temporary book-tax differences will reverse in future years whereas permanent differences will not.
• D)Neither temporary nor permanent book-tax differences will reverse in future years.

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Definitions:

Coalitions

Groups formed within an organization by individuals or teams sharing common goals or interests, often to gain influence or achieve a specific objective.

Norming Stage

A phase in team development where members establish standards and norms, enhancing unity and cooperation.

Cliques

Small, exclusive groups of people who share common interests or views, often excluding others.

Noticeable

Easily seen, recognized, or observed; attracting attention.