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.

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Definitions:

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are pervasive and impair daily functioning.

Autism Spectrum Disorder

A developmental disorder characterized by deficits in social interaction, by impaired communication, and by restricted, repetitive behavior and interests.

Social Cues

Non-verbal or verbal hints that guide social interactions, such as facial expressions, body language, and vocal tones.

Autism Spectrum Disorder

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, speech, and nonverbal communication.