Which of the Following Items Is Not a Temporary Difference

question 84

Multiple Choice

Which of the following items is not a temporary difference?

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

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Definitions:

Creativity

The ability to produce original and valuable ideas or solutions by thinking beyond traditional frameworks or exploring new perspectives.

Improvisation

The act of creating or performing something spontaneously or without preparation.

Spontaneous

Occurring without external cause, force, or planning; arising naturally or impulsively.

Imaginative

Characterized by the ability to think of new and original ideas or concepts beyond conventional patterns.