Which of the Following Items Will Not Create a Deferred

question 114

Multiple Choice

Which of the following items will not create a deferred tax liability?

• A) Revenues or gains are recognized earlier for book purposes than for tax purposes.
• B) Expenses or losses are deductible earlier for tax purposes than for book purposes.
• C) Tax basis of an asset is less than its book basis.
• D) Operating loss or tax credit carryforwards exist.

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Definitions:

Training Initiative

A strategic approach aimed at developing skills and knowledge within an organization through structured training programs.

Utility Factor

A measure of the usefulness or practical benefit that an individual or society gains from a product, service, or activity.

Development Costs

Expenses incurred in the creation, design, and implementation of new products, projects, or services, including research and development.

Net Benefits

The total positive effects or gains of a decision or action minus the total costs or negatives associated with it.