"Temporary differences" are book-tax differences that appear in both the GAAP financial statements and the Federal income tax return, but not in the same reporting period
a. True
b. False
Indicate whether the statement is true or false
True
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Which if the following is not true about the retail inventory method?
a. It is used to estimate ending inventory; b. A ratio of cost divided by retail price is used in the computation; c. Records of both the cost and the selling prices must be kept; d. Companies that use this method are also likely to use the specific identification method; e. It is a variation of the gross profit method.
All of the following are criteria that financial reporting requires before recognizing an obligation as a liability except:
a. The transaction or event that gave rise to the obligation has already occurred. b. The firm has a present obligation and little or no discretion to avoid the transfer. c. The firm must know the precise amount of the obligation before recording it. d. The obligation involves a probable future sacrifice of economic benefits–a future transfer of cash, goods, or services; the forgoing of a future cash receipt; or the transfer of equity shares–at a specified or determinable date. The firm can measure with reasonable precision the cash-equivalent value of the resources needed to satisfy the obligation.
Adverse psychological effects of stress include ________.
a. absenteeism b. elevated heart rates c. boredom d. rapid speech
A _____ is a situation requiring the purchase of a product for the first time.
A. straight rebuy B. value buy C. modified rebuy D. new buy E. make-or-buy