The Deferred Tax account should reflect permanent differences but not items that are temporary differences between book accounting and tax reporting.

Name: The Deferred Tax account should reflect permanent differences but not items that are temporary differences between book accounting and tax reporting.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

The Deferred Tax account reflects temporary differences between book accounting and tax reporting, not permanent differences. Permanent differences do not affect deferred taxes.

The Deferred Tax Account Should Reflect Permanent Differences but Not