Which of the Following Statements Describes a Permanent Book/tax Difference

question 53

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 that is never deductible
• 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:

Commonsense Observations

Practical judgments and experiences that are perceived as plain or sound, typically based on everyday life.

Past Behavior

Actions or conduct exhibited by an individual in earlier times, which can be an indicator of future actions or tendencies based on consistent patterns.

Aspirations

Desires or ambitions of achieving something, typically referring to goals related to personal or professional success.

Freud and Adler

Sigmund Freud and Alfred Adler, influential figures in psychology, known for their contributions to psychoanalytic theory and individual psychology, respectively.