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.

---

Definitions:

Mutuality

A principle based on mutual interests, benefits, and cooperation between parties, often characterized by reciprocal actions.

Founder Syndrome

A phenomenon where organizations or businesses experience challenges stemming from the continuing dominance of the founder(s), potentially stifling growth, adaptation, or change.

Federation

An organization or group within which smaller divisions or parties agree to some central authority or governance.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.