Which of the Following Usually Results in an Increase in a Deferred

question 72

Multiple Choice

Which of the following usually results in an increase in a deferred tax asset?

• A) Accelerated depreciation for tax reporting and straight-line depreciation for financial reporting.
• B) Prepaid insurance.
• C) Subscriptions delivered for which customers had paid in advance.
• D) None of these answer choices are correct.

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Definitions:

New Ideas

Innovative concepts or proposals not previously considered, which can be applied to various fields such as technology, business, or creative endeavors.

Developing Products

The process of creating new products or improving existing ones to meet market demand or exploit new market niches.

Test Marketing

The process of launching a product in a limited market to gauge consumer response before a full-scale launch, used to predict product success and refine marketing strategies.

Low-Carb Juice

A beverage product designed to contain low amounts of carbohydrates, catering to individuals following low-carb diets for health or weight loss reasons.