MATCHING: Listed below are terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term. Provide reasoning for your ansers if you can.

ANSWER	TERM	PHRASE: DESCRIPTION OR CHARACTERIZATION
	1. TAXABLE INCOME	A. It is usually a revenue or expense item that is excluded or not deductible in determining the actual tax expense.
	2. OPERATING LOSS CARRYBACK	B. It reduces the net deferred tax asset and is allocated between current and noncurrent in the Balance Sheet because it represents a permanent portion.
	3. DEFERRED TAX ASSET	C. It will create a deferred tax asset for future tax periods.
	4. VALUATION ALLOWANCE	D. It arises when future taxable amounts are created by temporary differences.
	5. PRIOR PERIOD ADJUSTMENT	E. It produces future taxable amounts or future deductible amounts because the taxable income on the Financial Statements does not equal the current tax expense.
	6. PERMANENT DIFFERENCE	F. It would be either debited or credited directly to Retained Earnings net of any tax effect.
	7. TEMPORARY DIFFERENCE	G. It will generate a refund of taxes paid in prior tax years.
	8. PERMANENT TAX-FREE ITEMS	H. It arises when future deductible amounts are created by temporary differences.
	9. OPERATING LOSS CARRYFORWARD	I. Earnings from state or local governmental bonds
	10. DEFERRED TAX LIABILITIY	J. It is the amount found in the Financial Statements and is also basis for computing the tax liability for the taxes currently payable.