Which of the Following Represents a Permanent Difference

question 22

Multiple Choice

Which of the following represents a permanent difference?

• A) Point-of-sale revenue recognition for financial reporting purposes,installment method for tax purposes
• B) Goodwill amortization deducted on the tax return but not amortized for financial reporting purposes
• C) Straight-line depreciation for financial reporting purposes,accelerated depreciation for tax purposes
• D) Carryback,carryforward option for taxes,no such option for financial reporting purposes

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Definitions:

Specialized

Having a focus or expertise in a specific area of activity, knowledge, or production, often leading to increased efficiency.

Trading

The act of buying, selling, or exchanging goods, services, or financial instruments within markets.

Loads

In finance, refers to fees or commissions charged by a mutual fund, which can be at the time of purchase (front-end load), time of sale (back-end load), or as an annual expense (level load).

Absolute Advantage

The ability of a party (country, company, individual) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources.