Which of the Following Statements Explains Timing Differences for Tax

question 36

Multiple Choice

Which of the following statements explains timing differences for tax and financial accounting? i.Income is recognized in one period for tax and in another period for financial accounting.
Ii) Income is recognized for accounting but not for tax purposes.
Iii) Expenses not deductible for tax purposes are deductible for financial accounting.
Iv) An expense is deducted currently for tax but in a later period for financial accounting.

• A)i.only
• B)i.and ii.
• C)i.and iv.
• D)ii.and iii.