All of the following would normally result in timing (temporary) differences between tax and financial accounting except:
A)Amortization of start-up expenses
B)Prepaid income
C)Penalty for late payment of taxes
D)Installment sales

Question

Quizplus · Accepted Answer

Penalty for late payment of taxes results in a permanent difference between tax and financial accounting, not a timing difference. Timing differences eventually reverse, whereas permanent differences do not.

All of the Following Would Normally Result in Timing (Temporary)