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:

Grapevine

Internal information channel that transmits information from unofficial sources.

Informal Communication Channel

Messages outside formally authorized channels within an organization’s hierarchy.

Stock Options Plan

A benefit plan that gives employees the option to buy company shares at a future date at a predetermined price.

Company Stock

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.