All of the Following Would Normally Result in Timing (Temporary)

question 42

Multiple Choice

All of the following would normally result in timing (temporary) differences between tax and financial accounting except:

• A)Amortization of start-up expenses
• B)Prepaid income
• C)Penalty for late payment of taxes
• D)Installment sales

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Definitions:

General Journal

A basic accounting ledger that records each financial transaction of a business in chronological order.

Transactions

The exchanges or transfers of goods, services, or funds between two or more parties.

Journal

An accounting record where all transactions are initially recorded using the double-entry bookkeeping system before their details are posted to accounts in the general ledger.

T Account

A graphical representation used in accounting to depict the debit and credit sides of a ledger for easier visualization and understanding.