Tax allocation is made necessary by the permanent differences in financial statement income and tax income.

Name: Tax allocation is made necessary by the permanent differences in financial statement income and tax income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Tax allocation is necessary due to temporary differences between financial statement income and taxable income, not permanent differences. Permanent differences affect either taxable income or financial income, but not both, and do not require allocation.

Tax Allocation Is Made Necessary by the Permanent Differences in Financial