Which of the Following Would Not Result in a Permanent

question 43

Multiple Choice

Which of the following would not result in a permanent difference between pretax financial income and taxable income?

• A)product warranty costs
• B)premiums paid for life insurance policies on officers of the company
• C)interest revenue received from investments in municipal bonds
• D)percentage depletion in excess of cost depletion on wasting assets

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Definitions:

Instrument Payable

A financial document promising to pay a specified amount of money to a person in possession or to their order.

Time Paper

A financial document or instrument that is payable at a future specified date, not upon demand or presentation.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on-demand or at a set time, with the payee’s name either mentioned or left blank.

Separate Agreement

An individual contract related to, but distinct from, another contract, often detailing specific aspects or obligations not covered in the primary agreement.