Question: We often encounter deferred tax asset and liability on the balance sheet as well as the current and deferred portion of income tax expense on

We often encounter deferred tax asset and liability on the balance sheet as well as the current and deferred portion of income tax expense on the income statement. Why is it important to understand the difference between an originating temporary difference and permanent difference in a company as related to deferred taxes? Explain if this concept is relevant for personal finance.

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