All of the Following Involve a Temporary Difference for Purposes

question 56

Multiple Choice

All of the following involve a temporary difference for purposes of income tax allocation except

• A)revenues or gains that are included in pretax financial income prior to the time they are included in taxable income
• B)expenses or losses that are deducted to compute taxable income prior to the time they are deducted to compute pretax financial income
• C)revenues or gains that are included in taxable income prior to the time they are included in pretax financial income
• D)deductions that are allowed for income tax purposes but that do not qualify as expenses under generally accepted accounting principles

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Definitions:

Factors of Production

Resources used in the production of goods and services, including labor, capital, entrepreneurship, and land.

Total Income

The aggregate amount of money earned by an individual or organization from all sources before taxes or deductions.

Marginal Productivity

The extra output that is produced by using one more unit of a variable input, while keeping the quantities of other inputs constant.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, holding other factors constant.