Which of the following statements explain permanent differences between tax and financial accounting? i.Income is recognized in one period for tax and in another period for financial accounting
Ii)Income is recognized for accounting but not for tax purposes.
Iii)Expenses not deductible for tax purposes are deductible for financial accounting.
Iv)An expense is deducted currently for tax but in a later period for financial accounting.
A)ii.only
B)i.and ii.
C)i.and iv.
D)ii.and iii.

Question

Quizplus · Accepted Answer

Permanent differences between tax and financial accounting arise when income or expenses are recognized in one but not the other, such as when income is recognized for accounting but not for tax purposes (ii), or when expenses are deductible for financial accounting but not for tax purposes (iii).

Which of the Following Statements Explain Permanent Differences Between Tax