Income Taxes

How can you predict whether a temporary difference will reverse?

Ask whether tax and accounting recognition timing eventually switches.

If accounting income is less than taxable income, what deferred tax item is created and why?

A DTA; more tax is paid today than expense recognized.

How does income tax expense differ from taxes payable?

Tax expense includes current and deferred tax; taxes payable is current tax owed.

What makes a difference between accounting profit and taxable income permanent rather than temporary?

It never reverses in future periods.