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

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Definitions:

Quantity Demanded

The amount of a product that consumers are willing and able to purchase at a given price level.

Coca Cola

A multinational beverage corporation, known for its flagship product, a carbonated soft drink named after the company.

Advertising Campaign

A series of advertisement messages that share a single idea and theme intended to achieve a particular goal, such as increasing brand awareness or boosting sales.

Normal Good

A type of good for which demand increases as the consumer's income increases and decreases as the consumer's income decreases.