Which of the Following Differences Between Financial Accounting and Tax

question 101

Multiple Choice

Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax liability?

• A) Depreciation early in the life of an asset.
• B) Unrealized losses from recording investments at fair value.
• C) Rent collected in advance.
• D) None of these answer choices are correct.

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Definitions:

Approach Accounts

Theories or explanations that focus on the reasons or motivations behind individuals moving towards a goal or object.

Fast Pain

Fast pain is a rapid, sharp, and distinctly uncomfortable sensation often serving as an immediate reaction to injury or potential harm, promoting quick withdrawal from the source.

Amygdala

An almond-shaped set of neurons located deep in the brain's medial temporal lobe, involved in processing emotions such as fear, anxiety, and aggression.

James-Lange Theory

A theory suggesting that emotions are the result of physiological reactions to events.