The Most Common Difference Between Accounting Income and Taxable Income

question 36

True/False

The most common difference between accounting income and taxable income is when a corporation uses straight- line depreciation in its financial statements and accelerated depreciation in its tax return.

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Definitions:

Variance

A measure of variability that represents the mean of all squared deviation scores.

Nominal

Scale used to classify or categorize data into groups that have different names but are not related to each other in any other systematic way.

Scale of Measurement

The method or standard used to quantify the variables researchers are interested in, such as nominal, ordinal, interval, and ratio scales.

Interval

Scale used to categorize, rank order, and arrange data so that an equal interval unit appears between each of the scores.