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

question 81

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 will reverse in future years whereas permanent differences will not.
• B) Certain 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, and certain corporations are required to disclose book-tax differences as permanent or temporary on their tax returns.
• D) Neither temporary nor permanent book-tax differences will reverse in future years nor are certain corporations required to disclose book-tax differences as permanent or temporary on their tax returns.

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Definitions:

Honesty

The quality of being fair, truthful, and morally upright.

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An individual who has a deep appreciation for beauty, art, and tastefulness in various aspects of life.

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