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:

New Frontier

A term used by President John F. Kennedy to describe his goals and policies aimed at renewal and change in domestic and foreign affairs.

Social-Policy Agenda

A social-policy agenda refers to a planned set of policies and principles aimed at improving social conditions, addressing issues such as health, education, welfare, and equal opportunities.

Great Society

A set of domestic programs in the United States launched by President Lyndon B. Johnson aimed at eliminating poverty and racial injustice through education, healthcare, and civil rights reforms.

Guaranteed Annual Income

A governmental policy proposal to provide a minimum financial support to all citizens, ensuring a basic standard of living.