Which of the Following Is a Temporary Difference Classified as a Revenue

question 83

Multiple Choice

Which of the following is a temporary difference classified as a revenue or gain that is taxable after it is recognized in financial income?

• A) Subscriptions received in advance.
• B) Prepaid royalty received in advance.
• C) An installment sale accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes.
• D) Interest received on a municipal obligation.

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Definitions:

Tubular Secretion

The process by which substances are actively transported from blood into the urine within the kidneys.

Tubular Reabsorption

The process in the kidneys where substances are moved from the tubular fluid back into the blood, conserving water, electrolytes, and nutrients.

Renal Column

Parts of the kidney's tissue that extend between the pyramids, containing blood vessels and urinary tubes, and serving as a supportive structure for the cortex.

Renal Artery

A blood vessel that supplies oxygenated blood to the kidneys.