Which of the Following Describes a Temporary Difference

question 49

Multiple Choice

Which of the following describes a temporary difference?

• A)A difference that will be corrected in an amended tax return.
• B)A difference arising from an uncertain tax position.
• C)A fundamental difference in what constitutes revenue or expense for GAAP and tax purposes.
• D)A timing difference between the recognition of revenue or expense under GAAP and tax purposes.

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Definitions:

Talent

A natural aptitude or skill possessed by individuals.

Human Capital

Represents the economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Differences in Talent

Variations in the natural abilities, skills, or competencies among individuals that can impact productivity and earnings.

Doctoral Degrees

Advanced academic degrees awarded by universities, recognizing the highest level of expertise in a specific field of study.