Which of the Following Temporary Differences Creates a Deferred Tax

question 39

Multiple Choice

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

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

Assess the role of substitutes and complements in market dynamics.

Evaluate the influence of market interventions (e.g., tariffs) on supply and demand.

Appreciate the implications of market changes on related markets.

Recognize how changes in input costs affect the equilibrium market.

---

Definitions:

Salvage Value

Salvage value is the estimated resale or scrap value of an asset at the end of its useful life.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are likely to add value to the company.

Highly Uncertain

Refers to situations or outcomes with a very high level of unpredictability or risk, often due to a lack of information or complex variables.

Required Rate Of Return

This is the minimum rate of return on an investment that an investor deems acceptable, taking into account the investment's risk level and opportunity costs.