Temporary differences that will cause taxable income in future periods to be lower than book income in future periods give rise to

Question

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Temporary differences that will cause taxable income in future periods to be lower than book income in future periods give rise to deferred tax assets. This is because the company will be able to use these temporary differences to offset future taxable income and therefore reduce their tax liability in the future.

Temporary Differences That Will Cause Taxable Income in Future Periods