Which of the following is a permanent difference that is recognized for book purposes but not for tax purposes? Select one: a. Interest received on state and municipal bonds. b. Subscriptions received in advance c. The deduction for dividends received from U.S. corporations d. A litigation accrual x Your answer is incorrect. The deduction for dividends received from U.S. corporations is a permanent difference that is recognized for tax purposes but not for financial reporting purposes. Interest received on state and municipal bonds and premiums paid for life insurance carried by the company on key officers are recognized for financial reporting purposes but not for tax purposes. A litigation accrual is a temporary difference that is classified as an expense or loss that is deductible after it is recognized in financial income.Subscriptions received in advance in another temporary difference that is classified as a revenue or gain that is recognized in taxable income before in financial income. Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax asset? Select one: a. Straight-line depreciation for financial reporting and accelerated depreciation for tax reporting. b. Investment expenses incurred to obtain tax-exempt income x c. Unrealized gain from recording investments at fair value d. Estimated warranty expense A deferred tax account is classified on the balance sheet as Select one: a. either a current or a noncurrent liability x b. a net current amount c. a net noncurrent amount d. it should never appear on the balance sheet Your answer is incorrect. Companies should classify deferred tax accounts as a net noncurrent amount on the balance sheet Which of the following is a permanent difference that is recognized for book purposes but not for tax purposes? Select one: a. Interest received on state and municipal bonds. b. Subscriptions received in advance c. The deduction for dividends received from U.S. corporations d. A litigation accrual x Your answer is incorrect. The deduction for dividends received from U.S. corporations is a permanent difference that is recognized for tax purposes but not for financial reporting purposes. Interest received on state and municipal bonds and premiums paid for life insurance carried by the company on key officers are recognized for financial reporting purposes but not for tax purposes. A litigation accrual is a temporary difference that is classified as an expense or loss that is deductible after it is recognized in financial income.Subscriptions received in advance in another temporary difference that is classified as a revenue or gain that is recognized in taxable income before in financial income. Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax asset? Select one: a. Straight-line depreciation for financial reporting and accelerated depreciation for tax reporting. b. Investment expenses incurred to obtain tax-exempt income x c. Unrealized gain from recording investments at fair value d. Estimated warranty expense A deferred tax account is classified on the balance sheet as Select one: a. either a current or a noncurrent liability x b. a net current amount c. a net noncurrent amount d. it should never appear on the balance sheet Your answer is incorrect. Companies should classify deferred tax accounts as a net noncurrent amount on the balance sheet