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:

Non-Controlling Interest (NCI)

Equity interest in a subsidiary not attributable to the parent company, reflecting the minority shareholders' stake in the subsidiary's net assets.

Consolidated Balance Sheet

A financial statement showing the total assets, liabilities, and equity of a parent company and its subsidiaries as if they were a single entity.

Fair Value Enterprise Method

A valuation technique that estimates the price at which an asset or liability would be exchanged in an orderly transaction between market participants at the measurement date.

Consolidated Balance Sheet

A financial statement that summarizes the assets, liabilities, and equity of a company and its subsidiaries as a single entity.