Which of the Following Temporary Differences Creates a Deferred Tax

question 67

Multiple Choice

Which of the following temporary differences creates a deferred tax asset in the year in which it originates?

• A)Accelerated tax depreciation in excess of straight-line book depreciation.
• B)Prepayment income reported as income on the tax return prior to being reported as income on the financial income statement.
• C)Gain reported on the income statement prior to being reported on the tax return.
• D)Prepayment deduction reported on the tax return prior to being reported on the income statement.

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Definitions:

Tibial Tuberosity

A large protrusion on the anterior part of the tibia, where the patellar ligament attaches.

Femur

The longest and strongest bone in the human body, extending from the hip to the knee.

Patellar Surface

The patellar surface is the area on the distal end of the femur where the patella (kneecap) articulates or makes contact.

Tibia

A large bone located in the lower leg, also known as the shinbone, which bears much of the body's weight.