Which of the Following Statements Is Correct Regarding Permanent Differences

question 80

Multiple Choice

Which of the following statements is correct regarding permanent differences under IFRS?

• A)Permanent differences result from items that enter into pretax financial income but never into taxable income.
• B)Permanent differences result from items that enter into taxable income but never into pretax financial income.
• C)Permanent differences affect only the period in which they occur.
• D)All of the choices are correct.

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Definitions:

Tickler File

An organizational system used to remind a person of tasks that need to be done at specific future dates.

Unpaid Vouchers

Refers to vouchers, which represent obligations or promises to pay, that have not yet been settled or paid.

Gross Method

An accounting method for recording purchases of inventory at their full invoice prices without deducting any cash discounts offered.

Periodic Inventory Method

A system of inventory management and cost determination that updates the ending inventory balance and the cost of goods sold only at the end of an accounting period.