It Is Important to Distinguish Between Temporary and Permanent Book-Tax

question 15

Multiple Choice

It is important to distinguish between temporary and permanent book-tax differences for which of the following reasons?

• A) Temporary book-tax differences will reverse in future years whereas permanent differences will not.
• B) Certain corporations are required to disclose book-tax differences as permanent or temporary on their tax returns.
• C) Both A and B are reasons for why a corporation might distinguish between temporary and permanent differences.
• D)Neither temporary nor permanent book-tax differences will reverse in future years nor are certain corporations required to disclose book-tax differences as permanent or temporary on their tax returns.

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Definitions:

Prospect

A potential customer or client who has been identified as fitting a target market or demographic but has not yet made a purchase.

Mental Steps

The cognitive processes or stages one goes through when solving a problem or making a decision.

Purchasing Decision

The process of evaluating and choosing among alternative products or services to fulfill a need or desire.

Selling Process

A series of steps taken by a salesperson to persuade potential buyers to purchase a product or service, from initial contact to closing the sale.