Temporary differences occur when an item affects both book and tax calculations but not in the same time period.

Name: Temporary differences occur when an item affects both book and tax calculations but not in the same time period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Temporary differences arise when the timing of recognition of revenue or expenses differs between accounting and tax reporting, leading to discrepancies in taxable income and financial income for a period.

Temporary Differences Occur When an Item Affects Both Book and Tax