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:

Biological Influences

refer to the genetic and physiological factors that affect an individual's behavior, development, and health.

Sensory Experience

The perception of stimuli through the senses such as sight, smell, sound, touch, and taste.

Plato

An ancient Greek philosopher who made foundational contributions to Western philosophy, including topics on ethics, politics, and metaphysics.

Aristotle

A Greek philosopher and polymath during the Classical period in Ancient Greece, known for his extensive contributions to various fields of philosophy and science.