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:

Salt

A mineral composed primarily of sodium chloride (NaCl), used in food for flavoring and preservation.

Aqueous Solution

A solution where water is the solvent.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, composed of hydrogen and oxygen, vital for all known forms of life.

Simple Epithelium

A single layer of cells that forms the lining of various organs and structures within the body, involved in absorption, secretion, and filtration.