The discrepancy between methods used for accounting purposes and methods used for tax purposes causes items in the financial statements to be shown "net of tax."

Name: The discrepancy between methods used for accounting purposes and methods used for tax purposes causes items in the financial statements to be shown "net of tax."
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The discrepancy between accounting and tax methods leads to temporary differences, resulting in deferred tax assets or liabilities, not items shown "net of tax."

The Discrepancy Between Methods Used for Accounting Purposes and Methods