A major distinction between temporary and permanent differences is:

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.


Answer: temporary differences reverse themselves in subsequent accounting periods,
whereas permanent differences do not reverse


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