1. A corporations accounting income (financial income/book income)

a. does not differ from taxable income due to differences in income determination in the current period.

b. may differ from taxable income due to temporary differences between periods.

c. is based on internal revenue rules.

d. is reported on the corporation's tax return.

2. RCo recognizes an expense for tax purposes before it recognizes the expense for financial statement purposes. This is a result of which of the following?

a. Product warranty liability.

b. Prepaid expenses.

c. Subscription revenue received in advance.

d. Advance rental receipts.