There Are Two Kinds of Differences Between Income Tax Rules

question 12

Multiple Choice

There are two kinds of differences between income tax rules and accounting rules.What are these called?

• A) Permanent and impermanent differences
• B) Permanent and temporary differences
• C) Persistent and temporary differences
• D) Present and future differences

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Definitions:

Break-even

The point at which total costs and total revenues are equal, meaning that there is no net loss or gain from the business activities.

Marginal Cost

The expense associated with the production of an extra single unit of a good or service.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, homogeneous products, and perfect information among consumers and producers.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to perfect information and no control over prices.