Which of the Following Temporary Differences Results in a Deferred

question 21

Multiple Choice

Which of the following temporary differences results in a deferred tax asset in the year the temporary difference originates?
I.Accrual for product warranty liability.
II.Subscriptions received in advance
III.Prepaid insurance expense.

• A) I and II only.
• B) II only.
• C) III only.
• D) I and III only.

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Definitions:

Superego

A component of the mind in Freudian psychoanalysis that represents the moral standards and ideals derived from society and parents, guiding or controlling a person's behavior.

Perfectionism

A trait characterized by striving for flawlessness and setting excessively high performance standards, accompanied by overly critical self-evaluations and concerns regarding others' evaluations.

Compensation

A strategy where individuals attempt to offset perceived deficiencies by emphasizing strengths or successes in other areas.

First-Born

The eldest child in a family, often subject to specific psychological and social dynamics and expectations.