Temporary differences relate only to items that will be recognized on both the income statement and the tax return, but in different reporting periods.

Name: Temporary differences relate only to items that will be recognized on both the income statement and the tax return, but in different reporting periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Temporary differences can also relate to items recognized in the financial statements but never in the tax return, or vice versa, not just to items recognized in both but in different periods.

Temporary Differences Relate Only to Items That Will Be Recognized