In any given accounting period, the amount a firm reports as income before income taxes for financial reporting in comparison to the amount of taxable income that appears on its income tax return may differ due to permanent differences. Permanent differences include
a. interest revenue on municipal bonds.
b. depreciation on long-lived assets.
c. bad debt expense.
d. warranty expense.
e. none of the above.
A
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The total amount of interest calculated annually on a $7,000 promissory note payable for 3 years at 12% that is not compounded is
a. $ 280 b. $ 840 c. $ 2,520 d. $ 8,260
Predatory pricing arises when a dominant retailer sets prices below its costs to drive competitive retailers out of business.
Answer the following statement true (T) or false (F)
Entrepreneurial action can be defined as those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.
Answer the following statement true (T) or false (F)
The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:
a. mutual assent. b. consideration. c. legality of object. d. contractual capacity.