A difference between the amounts of the accounting expenses and the tax deductions of a company which will be reversed in future periods indicates:

Question

Quizplus · Accepted Answer

A difference between the amounts of the accounting expenses and the tax deductions of a company which will be reversed in future periods is known as a temporary difference. This means that the timing of recognition between accounting and tax purposes is different and will eventually reconcile in the future. It does not indicate unethical practices, a permanent difference or a greater annual income tax expense.

A Difference Between the Amounts of the Accounting Expenses and the Tax