Permanent differences arise due to timing differences between the corporation's pretax financial income and taxable income, which results in deferred tax assets and liabilities.

Question

Quizplus · Accepted Answer

Permanent differences do not result in deferred tax assets or liabilities because they do not reverse over time; they are differences that will never be reconciled between financial and taxable income.

Permanent Differences Arise Due to Timing Differences Between the Corporation's