A Temporary Difference Created This Year Causes Book Income to Be

question 23

Multiple Choice

A temporary difference created this year causes book income to be greater than taxable income;in future years book income will be less than taxable income.The temporary difference in the future years' incomes is referred to as

• A)reversing temporary difference.
• B)originating temporary difference.
• C)permanent difference.
• D)minor difference.

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Definitions:

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific business segment or department.

Net Operating Income

The total profit of a company after all operating expenses, excluding interest and taxes, have been deducted from revenues.

Price Hike

A price hike refers to an increase in the price of goods or services, often due to factors such as increased production costs or higher demand.

Sales Forecast

An estimate of the sales volumes, and often revenues, that a company expects to achieve within a specific period.