Differences between pretax financial accounting and taxable income that are expected to reverse in one or more future accounting periods are called

Question

Quizplus · Accepted Answer

Temporary differences are differences between the tax base of an asset or liability and its carrying amount in the financial statements that will result in taxable or deductible amounts in future periods when the carrying amount of the asset or liability is recovered or settled. Permanent differences, on the other hand, do not reverse in the future.

Differences Between Pretax Financial Accounting and Taxable Income That Are