Which of the Following Temporary Differences Creates a Deferred Tax

question 12

Multiple Choice

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

• A) Accumulated tax amortization in excess of book amortization on a customer list.
• B) Compensation expensed for book purposes but deferred for tax purposes.
• C) Accumulated tax depreciation in excess of book depreciation on a building.
• 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:

Migratory Behavior

The seasonal movement of animals from one region to another for breeding, food, or climate reasons.

Connectivity

The state or quality of being connected or interconnected.

Conservation Efforts

Actions taken to protect, preserve, and restore species and their habitats to ensure biodiversity is maintained.

Territoriality

The behavior of animals or groups in defending a specific area against others of the same or different species, often linked to resources or mating opportunities.