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.

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Definitions:

Fiscal Year

A Fiscal Year is a 12-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year and varies between organizations and governments.

Financial Success

The achievement of financial goals and objectives, often measured by profitability, revenue growth, or market share expansion.

HR Department

The division within an organization that is focused on recruitment, management, and direction for the people who work in the organization.

Recruitment and Selection

The process of identifying, attracting, and choosing candidates for employment to meet organizational needs and objectives.