Under AASB 112 the Following Is True

question 3

Multiple Choice

Under AASB 112 the following is true:

• A)taxable temporary difference produce deferred tax assets and deductible temporary differences produce deferred tax liabilities
• B)taxable temporary difference produce deferred tax liabilities and deductible temporary differences produce deferred tax assets
• C)carry forward tax losses produce deferred tax liabilities
• D)income tax is treated as an expropriation of profits not as an expense.

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Definitions:

Reversible Reactions

Chemical reactions that can proceed in both the forward and backward directions under certain conditions, achieving a state of equilibrium.

Exchange Reaction

A chemical reaction where parts of two reacting molecules are interchanged to produce new products.

Synthesis Reaction

A process where multiple substances merge to create a compound that is more complex.

Decomposition Reaction

A chemical process where a lone compound decomposes into multiple, less complex materials.