Situations which require that future income tax be reported involve a difference that is called which of the following?
A) A temporary difference.
B) A reversing tax inverse difference.
C) A permanent difference.
D) A contingent liability.

Question

Quizplus · Accepted Answer

Situations which require that future income tax be reported involve a difference between the carrying amount of an asset or liability and its tax basis. This difference is called a temporary difference.

Situations Which Require That Future Income Tax Be Reported Involve