Which of the Following Describes a Permanent Difference

question 56

Multiple Choice

Which of the following describes a permanent difference?

• A)A difference that will be corrected in an amended tax return.
• B)A difference arising from an uncertain tax position.
• C)A fundamental difference in what constitutes revenue or expense for GAAP and tax purposes.
• D)A timing difference between the recognition of revenue or expense under GAAP and tax purposes.

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Definitions:

Compensation

Is the set of rewards that organizations provide to individuals in return for their willingness to perform various jobs and tasks within the organization.

Clusters

Groups or collections of similar items or entities, often used in statistical analysis or data segmentation for more efficient analysis and understanding.

Grades

Evaluations or ratings typically given to student assignments or performance, assessing their mastery of subject matter.

Perquisites

Benefits or privileges provided to employees in addition to their salaries, such as company cars or health insurance.