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:

Antennae

Sensory appendages on the heads of insects and some other arthropods, used for sensing the environment, including smells and sounds.

Butterflies

Insects of the order Lepidoptera, characterized by their colorful wings and the role they play in pollination and as indicators of ecosystem health.

Estrildid Finch

A family of small passerine birds, often characterized by their colorful plumage and complex vocalizations, commonly found in tropical and subtropical regions.

Proximate Cause

An immediate, underlying cause based on the operation of biological mechanisms within an organism.