Which of the Following Statements Explain Permanent Differences Between Tax

question 24

Multiple Choice

Which of the following statements explain permanent differences between 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)ii.only
• B)i.and ii.
• C)i.and iv.
• D)ii.and iii.

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Definitions:

Net Seller

An entity or individual that sells more of a security, commodity, or product than is purchased over a specific time period.

Inferior Good

A category of products whose demand diminishes when consumer income rises, in opposition to normal goods.

Wage Rate

The fixed amount of compensation or payment provided to an employee by an employer in return for work performed, typically expressed per hour or year.

Utility Maximizer

An individual or entity that seeks to achieve the highest level of satisfaction possible from their consumption choices, given their resources.