Which of the Following Causes a Permanent Difference Between Taxable

question 56

Multiple Choice

Which of the following causes a permanent difference between taxable income and pretax accounting income?

• A) Investment expenses incurred to obtain tax-exempt income.
• B) Unrealized gains from recording investments at fair value.
• C) Rent collected in advance.
• D) Prepaid expenses.

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Definitions:

Zero Defects

A quality management philosophy that aims for the minimization and elimination of defects in manufacturing processes and products.

Deming

Refers to W. Edwards Deming, an American engineer and statistician known for his work in quality management and his influential ideas in improving business processes.

Numerical Quotas

Specific numeric limits set for production, sales, or other business metrics that need to be achieved within a given timeframe.