Temporary differences occur when an item affects both book and tax calculations but not in the same time period.

Name: Temporary differences occur when an item affects both book and tax calculations but not in the same time period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Temporary differences occur because an item may affect book and tax calculations in different time periods. For example, an expense may be deductible for tax purposes in a different year than it is recognized for book purposes.

Temporary Differences Occur When an Item Affects Both Book and Tax