Which of the Following Items Is Not a Temporary Difference

question 40

Multiple Choice

Which of the following items is not a temporary difference?

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

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Definitions:

True Purpose

The actual reason behind an action or an existence, not always visible or declared.

Psychology

The exploration and analysis of mental processes and actions, including both aware and unaware experiences and cognitive activities.

Function of Behavior

The reason or purpose behind a specific behavior, often understood in the context of what the behavior accomplishes for the individual.

Introspection

The examination of one’s own mental and emotional processes, reflecting on thoughts, feelings, and motives.