Which of the Following Temporary Differences Creates a Deferred Tax

question 92

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 deduction reported on the tax return prior to being reported on the income statement.
• C) Gain reported on the income statement prior to being reported on the tax return.
• D) Prepayment income reported as income on the tax return prior to being reported as income on the financial income statement.

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Definitions:

Horney

describes theories or concepts developed by Karen Horney, a psychoanalytic psychologist known for her theory of neurotic needs and emphasis on the social aspects of personality development.

Socializing

The process by which individuals learn the values, norms, and behaviors that are necessary for participating in social life and cultural contexts.

Neurotic Individuals

Describes people with a tendency toward anxiety, depression, or other forms of emotional distress, often due to ineffective coping mechanisms.

Karen Horney

A psychoanalytic psychologist known for her work on neurotic personality structure, theories of neuroses, and criticism of Freud's theories on women.