Which of the Following Results in a Deferred Tax Asset

question 78

Multiple Choice

Which of the following results in a deferred tax asset?

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

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Definitions:

Hans Eysenck

A prominent psychologist known for his theories on personality and intelligence, and for his controversial work on the biological and genetic basis of personality.

Time-consuming

Activities or processes that require a considerable amount of time to complete.

Randomized Clinical Trials

A type of scientific experiment that aims to reduce bias when testing the effectiveness of new treatments, by randomly assigning participants to either a treatment group or a control group.

Virtual Reality

An immersive digital environment that can simulate physical presence in places in the real world or imagined worlds.