Which of the Following Statements Describes a Permanent Book/tax Difference

question 52

Multiple Choice

Which of the following statements describes a permanent book/tax difference?

• A) An expense reported on the current income statement but deducted on next year's tax return
• B) A revenue item included in current taxable income but not reported on the income statement until next year
• C) An expense (or loss) is realized for book purposes but never recognized for tax purposes
• D) A revenue item reported on the current income statement but not included in taxable income until an indefinite future year

---

Definitions:

Nearly Normal Condition

A condition in statistics where a sample distribution approximates a normal distribution, often requisite for certain types of inference.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Inference Conditions

Criteria that must be met before conducting statistical inference to ensure that the results are reliable, including randomness, normality, and independence.

Confidence Interval

A statistical range, with a certain probability, within which the true value of a parameter lies.