Which of the Following Is an Example of a Temporary

question 117

Multiple Choice

Which of the following is an example of a temporary difference, which would result in a deferred tax asset?

• A)Investment losses recognized later for accounting purposes than for tax purposes
• B)Rent revenue collected in advance when included in taxable income before it is included in pre-tax accounting income
• C)Use of a shorter depreciation period for accounting purposes than is used for income tax purposes
• D)Use of straight-line depreciation for accounting purposes and an accelerated rate for income tax purposes

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Definitions:

Soft Tissue

Parts of the body that include muscles, tendons, ligaments, fat, and other connective tissues not involving bone.

Massage

The manipulation of the body's soft tissues to relieve muscle tension, reduce stress, and promote overall health and well-being.

Approaches

Methods or strategies used to address issues or achieve goals.

Mental and Physical Fitness

A state of health and well-being in both the mind and the body.