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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Definitions:

Shopper Marketing

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.

Product Samples

are small quantities of a product given away free of charge to consumers to try and encourage purchase.

Brand Communications

The means by which a brand conveys its values, attributes, and benefits to its target audience to build brand awareness and loyalty.

Displays

Physical or digital presentations designed to visually promote and provide information about products or services to potential customers.