Which of the Following Is Not a Timing Difference That

question 13

Multiple Choice

Which of the following is not a timing difference that would cause pretax financial accounting income to differ from taxable income?

• A)Investment revenue is recognized under the equity method for financial reporting purposes but in a later period as dividends are received for income tax purposes.
• B)Life insurance proceeds are received by a corporation upon the death of an insured employee of the corporation.
• C)Rent received in advance is taxable when received but is not reported as revenue for financial reporting purposes until the service has actually been provided.
• D)MACRS depreciation is used for income tax purposes, and straight-line depreciation is used for financial reporting purposes.

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Definitions:

Perceive Ourselves

Refers to the process of thinking about, reflecting on, and understanding one's own identity, characteristics, and behaviors.

Positive Views

The perspective or outlook that focuses on the most favorable aspects of a situation or the optimistic side of things.

Negative Views

Pessimistic perceptions or attitudes towards something or someone, often without considering positive aspects.

Self-Verification

The desire to be understood and acknowledged by others according to one's firmly held beliefs and feelings about oneself.