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:

Idealized

Artwork or representations created in a way that portrays subjects in a perfected or highly stylized form, often ignoring flaws.

Early Stone Age

The earliest period of the Stone Age, characterized by the use of rudimentary stone tools by early humans, also known as the Paleolithic era.

Rock Art

comprises human-made markings placed on natural stone; it includes petroglyphs, carvings, engravings, and paintings, serving as a prehistoric form of expression and communication.

King Lalibela

A legendary 12th-century Ethiopian ruler credited with the founding of the rock-hewn churches in Lalibela, a significant Christian pilgrimage site.