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Which of the Following Statements Regarding Book/tax Differences Is False

Question 61

Multiple Choice

Which of the following statements regarding book/tax differences is false?


A) A permanent book/tax difference affects only the year in which it occurs.
B) A temporary book/tax difference affects two or more tax years.
C) Temporary book/tax differences arising in the current tax year will reverse in the future in one or more tax years.
D) The tax cost or benefit of a permanent book/tax difference is recouped over time.

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