Which of the following statements is false?

Permanent tax differences only affect the period in which they occur.

Permanent tax differences enter into taxable income but never into pretax financial income.

Temporary tax differences enter into taxable income but never into pretax financial income.

The initial difference between the book basis and the tax basis of an asset or liability is called an originating temporary difference.

None of these answers are correct

Which of the following statements is false regarding the actual return on pension plan assets?

It includes the increase in pension fund assets due to dividends.

It includes any contributions made to the pension plan in the period.

It excludes any contributions made to the pension plan in the period.

None of these answers are correct.

It includes the increase in pension fund assets due to interest.

Stock option plans can be compensatory or non-compensatory. The characteristics of each type of plan are different. Which of the following is not a characteristic of a non-compensatory stock option plan?

None of these answers are correct

Discount from the market price of the stock no greater than would be reasonable in an offer of stock to stockholders or others.

The plan offers no substantive option feature.

Unlimited time period permitted for exercise of an option as long as the holder is still employed by the company.

Substantially all full-time employees may participate on an equitable basis.

Which of the following is not an alternative approach for measuring an employer's pension obligation?

Accumulated benefit obligation

None of these answers are correct

Vested benefit obligation

Capitalized benefit obligation

Projected benefit obligation