A Taxable Temporary Difference Is One That Will Result In

question 56

Multiple Choice

A taxable temporary difference is one that will result in:

• A) an increase in income tax payable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.
• B) a decrease in income tax payable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.
• C) an increase in income tax recoverable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.
• D) a decrease in income tax payable in future reporting periods when the carrying amount of the asset or liability is recovered or settled and an increase in income tax recoverable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.

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Definitions:

Propanoic Acid

An organic compound, a colorless, oily liquid with a pungent odor, used industrially in the production of esters, as a preservative, and in cosmetics.

Amino Acid

Organic molecules used as the building blocks of proteins, characterized by an amino group, a carboxyl group, and a specific side chain attached to a central carbon atom.

Propionic Acid

A naturally occurring carboxylic acid with chemical formula C3H6O2, used in food preservation.

Alanine

A nonessential amino acid that is used in the biosynthesis of proteins.