Which of the following statements explains timing differences for 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)i.only
B)i.and ii.
C)i.and iv.
D)ii.and iii.

Question

Quizplus · Accepted Answer

Timing differences for tax and financial accounting occur when income or expenses are recognized in different periods for tax purposes compared to financial accounting. This includes situations where income is recognized in one period for tax purposes and in another period for financial accounting (i), and when an expense is deducted currently for tax purposes but in a later period for financial accounting (iv).

Which of the Following Statements Explains Timing Differences for Tax