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.

---

Definitions:

Delegator

A person or entity that transfers certain duties or authority to another, allowing them to act on their behalf.

Article 2

Depending on the context, this could refer to Article 2 of various laws or agreements; often associated with the UCC in the US, governing the sale of goods.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to standardize and simplify the laws across states.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the unlawful act or negligence of another.