A temporary difference that causes book income to be greater than or less than taxable income when it is initially recorded is a/an

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Quizplus · Accepted Answer

An originating temporary difference is a timing difference between book and tax accounting that occurs initially and causes book income to be greater than or less than taxable income. Reversing temporary differences eventually get reversed and return to the same amount in both book and tax income, while permanent differences do not change over time. Minor differences are immaterial discrepancies between book and tax accounting that do not require adjustment.

A Temporary Difference That Causes Book Income to Be Greater