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Basic Question 2 of 13

Which of the following causes a permanent difference between taxable income and accounting profit?

A. Advance collection of revenues
B. MACRS depreciation used for plant assets
C. Interest income on municipal securities

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain how deferred tax liabilities and assets are created and the factors that determine how a company's deferred tax liabilities and assets should be treated for the purposes of financial analysis

CFA® 2025 Level I Curriculum, Volume 3, Module 9.