Permanent differences do not give rise to future taxable or deductible amounts.

Name: Permanent differences do not give rise to future taxable or deductible amounts.
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Question

Quizplus · Accepted Answer

Permanent differences are differences between the financial statement income and the taxable income that will never reverse and thus will not give rise to future taxable or deductible amounts. Examples of permanent differences include life insurance proceeds and tax-exempt interest income.

Permanent Differences Do Not Give Rise to Future Taxable or Deductible