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Gianna Catapano
on Nov 27, 2024

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A revenue included in the determination of book income this year but never included in taxable income is an example of a temporary difference.

Book Income

The income reported by a company according to accounting principles, often different from taxable income due to timing and valuation differences.

Taxable Income

The amount of income that is used to calculate an individual or a company's income tax liabilities.

Temporary Difference

A discrepancy between the book value of assets and liabilities for financial reporting purposes and their value for tax purposes, resulting in deferred tax assets or liabilities.

  • Understand the difference between permanent and temporary differences in tax accounting.
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David VictorNov 29, 2024
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