Which of the Following Will Result in a Deferred Tax

question 1

Multiple Choice

Which of the following will result in a deferred tax asset?

• A) Using the installment sales method for tax purposes, while using point of sale for financial reporting.
• B) Reporting an unrealized gain for a trading security.
• C) Using accelerated depreciation for tax purposes and straight-line depreciation for financial reporting.
• D) Reporting an expected loss on from a lawsuit in the income statement, when it cannot be reported on the tax return until it is actually incurred.

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Definitions:

Sociocultural

Relating to the interactive influence of social and cultural factors on an individual's behavior and functioning.

Expressed Emotion

A measure of the family environment that is based on how much criticism, hostility, and emotional over-involvement are expressed towards a family member.

Criticism

The expression of disapproval based on perceived faults or mistakes.

Downward Drift

A theory suggesting that individuals with severe mental illnesses tend to move towards lower socioeconomic status due to their impaired functioning.