Temporary differences that will cause taxable income to be higher than book income in future periods give rise to deferred tax liabilities.

Name: Temporary differences that will cause taxable income to be higher than book income in future periods give rise to deferred tax liabilities.
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Question

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Deferred tax liabilities arise from temporary differences that will cause taxable income to be higher than book income in future periods, resulting in higher tax expense in the future.

Temporary Differences That Will Cause Taxable Income to Be Higher