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Account differences occur when accounting rules for Book and Tax accounts vary. A temporary difference will be balanced out over time - e.g. accelerated depreciation for tax purposes. A permanent difference will not be balanced out over time - e.g. tax on municipal interest (this has is non-taxable, but will show up on the books).
What else can I help you with?
What is the difference between person fund vs account fund?
The difference between person fund and account fund is that a person fund is transferred to the recipient in person, while the account fund is transferred to the account of the recipient.
Difference between permanent current assets and temporary current assets?
permanent asset should be financed with permanent and spontaneous sources of financing,while temporary assets should be financed with temporary sources of financing.
Are premiums on life insurance of key officers a permanent difference?
Life insurance premium expense when the corporation is the beneficiary is a permanent difference. It is deducted for book income but not for taxable income. And the proceeds received on such policies result in a book gain but are not taxable.
What is the difference between a Roth IRA and a brokerage account?
A Roth IRA is a retirement account that offers tax advantages, while a brokerage account is a general investment account that does not have specific tax benefits.
What is the difference between trading a demo account and trading a live account?
Basically they are the thing but with one huge difference - while trading a LIVE account emotions gets in the way and interfere with the trader's decisions. That's the main reason why a lot of traders who done well trading the demo account can't get the same results with a live account. Greed and fear are usually what make traders lose their mind and eventually their money.
Is inventory permanent account or temporary account?
permanent account
Is the drawing account a permanent account?
Drawing account is not a permanent account rather it is temprary account which is closed to owners equity account at every year closing period.
Is prepaid insurance a permanent or temporary account?
it is permanent
Accounts Payable is a temporary or permanent account?
permanent
What is permanent account?
An account that won't go away.
Is Interest expense a permanent account?
No it is a temporary account
Is a balance sheet account referred to as a permanent account?
Assets, Liabilities, and Stockholder's Equity are all permanent accounts.
Is the purchase account a permanent account?
No, the purchase account is not a permanent account; it is a temporary account. Temporary accounts, such as purchase accounts, track financial activity over a specific period and are closed at the end of that period to a permanent account, typically retained earnings. Permanent accounts, on the other hand, carry their balances into future accounting periods and include assets, liabilities, and equity accounts.
Is cash account temporary account?
No cash account is a permanent account. as u treated cash as a debit element in General journal against of Capital. Capital is a permanent account so cash too.
Is retained earnings temporary account or permanent account?
Permanant
Is income summary a temporary or permanent account?
TEMPORARY ACCOUNT
What is permanent account number?
A permanent retirement account number given to pensioners in India. The number is given by the agency PFRDA.
