An Item That Would Create a Permanent Difference in Pretax

question 10

Multiple Choice

An item that would create a permanent difference in pretax financial and taxable incomes would be

• A) using accelerated depreciation for tax purposes and straight-line depreciation for book purposes.
• B) purchasing equipment previously leased with an operating lease in prior years.
• C) using the percentage-of-completion method on long-term construction contracts.
• D) paying fines for violation of laws.

---

Definitions:

Weights of Police Officers

This pertains to the data or measurements regarding the body weights of law enforcement personnel.

Class Intervals

Class Intervals are ranges of values into which data points are grouped in the creation of a frequency distribution for statistical analysis, often used in histograms.

3rd Deciles

A statistical measure that represents the top 30% of a data set, dividing it into ten equal parts.

7th Deciles

The value below which 70% of the data in a distribution falls, dividing the dataset into ten equal parts.