A Major Distinction Between Temporary and Permanent Differences Is

question 36

Multiple Choice

A major distinction between temporary and permanent differences is

• A) Permanent differences are not representative of acceptable accounting practice
• B) Temporary differences occur frequently, whereas permanent differences occur only once
• C) Once an item is determined to be a temporary difference, it maintains that status; however, a permanent difference can change in status with the passage of time.
• D) Temporary differences reverse themselves in subsequent accounting periods, whereas permanent differences do not reverse

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