Permanent differences between pretax financial income and taxable income result when

Question

Quizplus · Accepted Answer

Permanent differences arise when there is an income or expense item that is included in either the financial income or the taxable income but not in both, and this difference will not reverse in the future. SEC penalties are an example of a permanent difference because they are included in financial income but are not deductible for tax purposes.

Permanent Differences Between Pretax Financial Income and Taxable Income Result