A Temporary Difference Arises Due To

question 15

Multiple Choice

A temporary difference arises due to:

• A) the timing difference between the end of the financial year and when the income tax payable is paid
• B) a difference between the amounts of the accounting expenses and the tax deductions of a company which will be reversed in future periods
• C) a difference between the amounts of the accounting expenses and the tax deductions of a company which will never be reversed
• D) a difference in the amount of the deferred tax assets and the deferred tax liabilities

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Definitions:

Test Validity

The degree of accuracy with which an assessment measures its intended target.

Normal Distribution

A bell-shaped frequency distribution curve where most occurrences take place in the middle of the range and the probabilities of values farther away from the mean taper off equally in both directions.

Predictive Validity

How well a score from a test or scale indicates anticipated performance in tasks or outcomes that are related.

IQ Test

A standardized assessment used to measure human intelligence and cognitive abilities in relation to an age-group norm.