Temporary Differences Flashcards

1
Q

Define “taxable temporary differences.”

A

Differences that initially cause a postponement in the payment of taxes.

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2
Q

What type of deferred tax accounts do deductible temporary differences cause?

A

They cause Deferred tax assets.

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3
Q

Define “deferred tax asset.”

A

The future tax effect of a future deductible difference

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4
Q

List the two categories of temporary differences

A

Taxable Temporary Differences;

Deductible Temporary Differences

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5
Q

Are originating or future reversing temporary differences used in determining the change in deferred tax accounts?

A

Future reversing temporary differences are used

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