Answer Happy

Which of the following statements explain permanent differences between tax and financial accounting? Statement (1) - Income is recognized in one period for tax and in another period for financial accounting Statement (2) - Income is recognized for accounting but not for tax purposes. Statement (3) - Expenses not deductible for tax purposes are deductible for financial accounting Statement (4) - An expense is deducted currently for tax but in a later period for financial accounting Select one: a. Statements (1) and (4) b. Statements (1) and (2) C. Statements (2) and (3) d. Statement (2) only