Which of the Following Temporary Differences Creates a Deferred Tax

question 67

Multiple Choice

Which of the following temporary differences creates a deferred tax asset in the year in which it originates?

• A)Accelerated tax depreciation in excess of straight-line book depreciation.
• B)Prepayment income reported as income on the tax return prior to being reported as income on the financial income statement.
• C)Gain reported on the income statement prior to being reported on the tax return.
• D)Prepayment deduction reported on the tax return prior to being reported on the income statement.

---

Definitions:

Save Button

A graphical button in software applications that allows users to save their current work or data to a specific location.

Table Tools Tab

A contextual tab in programs like Microsoft Word that appears when a table is selected, offering options to modify the table's design and layout.

Status Bar

A graphical control element at the bottom of a window that displays information about the current state of the application or document.

Title Bar

The section at the top of a window that displays the title of the software or document and usually contains controls to minimize, maximize, or close.