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Match the Following Terms with Their Definitions

Question 78

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Match the following terms with their definitions.

Premises:
Arises from a transaction or event that affects both accounting income and taxable income but in different reporting periods.
A temporary difference that results in future taxable income being higher than accounting income.
Arises from a transaction or event that affects accounting income but never taxable income, or vice versa.
A temporary difference that results in future taxable income being less than accounting income.
The amount of income tax recoverable in future periods as a result of deductible temporary differences, losses carried forward, or tax credits carried forward.
The amount of income tax payable in future deferred tax liability periods as a result of taxable temporary differences.
Responses:
Deductible Temporary Difference
Permanent Difference
Deferred Tax Liability
Temporary Difference
Taxable Temporary Difference
Deferred Tax Asset

Correct Answer:

Arises from a transaction or event that affects both accounting income and taxable income but in different reporting periods.
A temporary difference that results in future taxable income being higher than accounting income.
Arises from a transaction or event that affects accounting income but never taxable income, or vice versa.
A temporary difference that results in future taxable income being less than accounting income.
The amount of income tax recoverable in future periods as a result of deductible temporary differences, losses carried forward, or tax credits carried forward.
The amount of income tax payable in future deferred tax liability periods as a result of taxable temporary differences.
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