What Kinds of Temporary Differences Related to Income Taxes Can

question 13

Multiple Choice

What kinds of temporary differences related to income taxes can arise under IFRS that don't occur under U.S.GAAP?

• A)book and tax differences related to the revaluation of property,plant,and equipment for book purposes and cost method for tax purposes.
• B)book and tax differences related to the calculation of impairments for book purposes with no like adjustment for tax purposes.
• C)both (A)and (B)
• D)use of the LIFO inventory method for book purposes and the FIFO inventory method for tax purposes.

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Definitions:

Number of Days

Often refers to the time period used in finance and accounting to calculate interest, production times, or deadlines.

Balance Sheet Approach

A method focusing on a company's balance sheet to assess its financial condition by analyzing assets, liabilities, and equity at a specific point in time.

Allowance Account

A contra-asset account used to estimate future uncollectible debts from customers, reducing the total amount of outstanding receivables.

Gross Accounts Receivable

The total amount of money owed to a company by its customers before deducting any allowance for doubtful accounts.