When Talking About New Products,what Does New Mean

question 16

Multiple Choice

When talking about new products,what does new mean?

• A) New-to-the-world
• B) Modification to existing products
• C) Additions to product lines
• D) Repositioning existing products
• E) All of the above

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Definitions:

Permanent Difference

These are differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting taxable income and tax liability.

Temporary Difference

A discrepancy between the tax base of an asset or liability and its carrying amount on the balance sheet that results in taxable or deductible amounts in future years.

Net Operating Loss Carryforward

This is a tax provision that allows a company to apply a tax year's net operating losses to future years' profits in order to lower tax liabilities.

US GAAP

The Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used in the financial reporting of companies.