Temporary Differences

question 64

Multiple Choice

Temporary differences:

• A) arise due to differences between income tax legislation and accounting rules, in a particular period, and are reversed in subsequent periods.
• B) can be both deductible temporary differences or taxable temporary differences.
• C) must be considered, and accounted for, by the creation of deferred tax asset and liabilities for all statement of financial position items (e.g. including asset revaluations), rather than just statement of comprehensive income items, which is a major change created by the new standard.
• D) arise due to changes in the income tax rate.

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Definitions:

Acquaintance

A person one knows slightly, but who is not a close friend.

Bald-Faced Lie

An obvious lie that is told without any attempt to conceal the untruth.

Falsification

The act of disproving a theory or hypothesis, generally considered a critical part of the scientific method.

Outright Deceive

To mislead or trick someone without any form of concealment or subtlety.