Which of the Following Is Not a Proper Description with Respect

question 54

Multiple Choice

Which of the following is not a proper description with respect to the financial accounting and reporting of income taxes?

• A)A permanent difference does not create a deferred tax asset or liability.
• B)An originating temporary difference will eventually create a reversing temporary difference.
• C)A net operating loss carryforward does not have any impact on income tax expense for the year the loss occurs.
• D)Income tax expense changes during the year that future tax rate increases are enacteD.

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Definitions:

Co-Payments

A fixed amount paid by an insured person for covered healthcare services in addition to what the insurance covers.

Mental Health Treatment

Interventions designed to treat mental disorders, which may include therapy, medication, or other forms of support.

Substance Abuse Treatment

A range of medical and therapeutic treatments aimed at helping individuals overcome dependence on or misuse of drugs, alcohol, or other substances.