An Unfavorable Temporary Book-Tax Difference Is So Named Because It

question 63

True/False

An unfavorable temporary book-tax difference is so named because it causes taxable income to decrease relative to book income.
Any book-tax difference that requires an add-back to book income to compute taxable income is an unfavorable book-tax difference because it requires an adjustment that increases taxable income relative to book income.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's unique character.

Reality Principle

A concept in psychoanalytic theory referring to the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

Ego

In psychology, a part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Personality Test

A questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup.