An Example of a "Deductible Temporary Difference" Occurs When

question 63

Multiple Choice

An example of a "deductible temporary difference" occurs when

• A) the installment sales method is used for tax purposes, but the accrual method of recognizing sales revenue is used for financial reporting purposes.
• B) accelerated depreciation is used for tax purposes but straight-line depreciation is used for accounting purposes.
• C) warranty expenses are recognized on the accrual basis for financial reporting purposes but recognized as the warranty conditions are met for tax purposes.
• D) the completed-contract method of recognizing construction revenue is used for tax purposes, but the percentage-of-completion method is used for financial reporting purposes.

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Definitions:

Personal Circumstances

The specific conditions or facts affecting an individual's life, which may influence their behavior, decisions, and opportunities.

Daily Life

The routine or day-to-day activities, tasks, and interactions that constitute an individual's regular existence.

Impressions

The immediate thoughts or feelings that are elicited in a person upon encountering something or someone for the first time.

Perception

The process through which people receive, organize, and interpret information from the environment.