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:

Dorsiflexion

The movement that brings the top of the foot toward the shin, involving the ankle joint.

Dorsiflexion

The action of raising the foot upwards towards the shin, decreasing the angle between the dorsal (top) side of the foot and the leg.

Internal Rotation

A movement in which a limb or part of the body is rotated toward the centerline of the body.

Hot-Water Bottle

A container filled with hot water and sealed with a stopper, used to provide warmth.