In general, a temporary difference reflects a difference in the financial basis and tax basis of an asset or liability on the balance sheet.

Question

Quizplus · Accepted Answer

This statement is true. A temporary difference occurs when there is a difference between the carrying value (financial basis) and tax basis of an asset or liability, which will result in either a future taxable amount or deductible amount.

In General, a Temporary Difference Reflects a Difference in the Financial