Differences Between the Carrying Amounts of an Entity's Net Assets

question 24

Multiple Choice

Differences between the carrying amounts of an entity's net assets determined under accounting standards, and the tax bases of those net assets, are described as:

• A) temporary differences;
• B) permanent differences;
• C) tax losses;
• D) the current income tax liability.

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Definitions:

Contract Frustration

A legal concept that occurs when unforeseen circumstances prevent the fulfillment of a contract, thus releasing the parties from their contractual obligations.

Contract Repudiation

The refusal to perform duties or obligations under a contract, which can lead to legal actions for breach of contract.

Breach

A violation or infraction of a law, duty, or agreement.

Condition Subsequent

A condition in a contract that, when fulfilled, terminates the contract or an obligation within the contract.