Which of the Following Items Is Not a Temporary Difference

question 84

Multiple Choice

Which of the following items is not a temporary difference?

• A)Vacation pay accrued for tax purposes in a prior period is deducted in the current period.
• B)Tax depreciation for the period exceeds book depreciation.
• C)A goodwill impairment expense is recorded on the income statement; the goodwill did not have a tax basis when it was created.
• D)Bad debts charged off in the current period exceed the bad debts accrued in the current period.

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Definitions:

Somatization

The manifestation of psychological distress through physical symptoms that have no identifiable physical origin.

Hypochondriasis

A mental disorder characterized by excessive worry about having a serious illness, despite medical reassurance and a lack of significant physical symptoms.

General Adaptation Syndrome

A theoretical model describing the body's short-term and long-term reactions to stress, developed by Hans Selye.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, often measured as an indicator of heart health.