An Example of a "Deductible Amount" Occurs When

question 56

Multiple Choice

An example of a "deductible amount" occurs when:

• A)Expenses are recognized more quickly for taxes than for accounting purposes.
• B)Product warranty costs recognized for tax purposes as the warranty conditions are met but recognized for accounting purposes earlier on the accrual basis.
• C)Accelerated depreciation is used for tax purposes but straight-line depreciation is used for accounting purposes.
• D)A gain on instalment sales is recognized for tax purposes as the receivable is collected, but was earlier recognized for accounting purposes when the sale was made.

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Definitions:

Crustal Root

The downward extension of the Earth's crust into the mantle beneath mountain ranges, helping to support the elevation of the mountains above.

Thrust Faults

Type of fault where the hanging wall moves up relative to the footwall, common in areas of compression.

Thrust Sheets

Large segments of the Earth's crust that have been thrust over one another by compressional forces, commonly found in mountainous regions.

Subsidence

The sinking or settling of the Earth's surface, often caused by natural processes such as erosion or human activities like mining.