5. A major distinction between temporary and permanent differences is a. permane

Question

5. A major distinction between temporary and permanent differences is
a. permanent differences are not representative of acceptable accounting practice.
b. temporary differences occur frequently, whereas permanent differences occur only once.
c. once an item is determined to be a temporary difference, it maintains that status; however, a permanent difference can change in status with the passage of time.
d. temporary differences reverse themselves in subsequent accounting periods, whereas permanent differences do not reverse.

Explanation / Answer

d. temporary differences reverse themselves in subsequent accounting periods, whereas permanent differences do not reverse.

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