Which of the Following Items Will Not Create a Deferred

question 106

Multiple Choice

Which of the following items will not create a deferred tax liability?

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

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Definitions:

Annual Basis

Refers to calculations, measurements, or assessments made over the course of a year.

Increased Turnover

A higher rate at which employees leave a company and are replaced, which can indicate dissatisfaction or a dynamic job market.

Compa-ratio

A comparative ratio used in compensation management to determine an employee's pay relative to the midpoint of the market or their pay grade.

Mid-point

The value that lies at the middle of a pay range for a given pay grade, often considered the market rate for a job.