Which of the Following Temporary Differences Creates a Deferred Tax

question 39

Multiple Choice

Which of the following temporary differences creates a deferred tax liability?

• A)Accumulated tax depreciation in excess of book depreciation on a building.
• B)Accumulated tax amortization in excess of book amortization on a customer list.
• C)Compensation expensed for book purposes but deferred for tax purposes.
• D)Both accumulated tax depreciation in excess of book depreciation on a building and accumulated tax amortization in excess of book amortization on a customer list create a deferred tax liability.

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Definitions:

Parity Ratio

The ratio used to assess the relative value of two currencies, commodities, or sets of data.

Prices Received

The amounts of money received by producers or sellers for the goods or services they sell, often subject to market conditions and demand.

Agriculture Sector

A segment of the economy focused on the production, processing, and distribution of food, fiber, and other related products.

Farm Output

The total quantity of agricultural products produced by a farm.