Which of the Following Does Not Result in a Permanent

question 35

Multiple Choice

Which of the following does not result in a permanent book/tax difference?

• A) Tax-exempt interest on state and local bonds
• B) NOL carryforwards
• C) Business entertainment expenses
• D) Lobbying expenses

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Definitions:

Title Passes

Refers to the moment when ownership of goods is legally transferred from the seller to the buyer in a transaction.

Buyer Signs

Acts of formal agreement by a purchaser to terms or documents, such as contracts or purchase orders.

F.O.B. Shipping Point

F.O.B. shipping point is a term used in shipping agreements indicating that the buyer is responsible for the goods once the seller ships them, and must pay the shipping costs.

Freight

The charge paid for the transportation of goods, typically by sea, air, or land.