单选题
Which of the following statements regarding differences in taxable and
pretax income is TRUE?
Differences in taxable and pretax income
that:
- A. result in deferred taxes are called permanent differences.
- B. increase or reduce the effective tax rate are called temporary
differences.
- C. result in deferred taxes are called temporary differences.
【正确答案】
C
【答案解析】The permanent differences are never reversed, while there is no time limit on temporary differences to reverse. Permanent differences never result in tax deferrals; temporary differences always result in deferred tax assets or liabilities.