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:

Pragmatic Socialist

A pragmatic socialist is an individual or ideology focused on socialist principles but flexible in methods and strategies to achieve social and economic goals, embracing practical approaches over purely ideological ones.

Industrialist

An individual who owns, operates, or has significant financial interest in industrial enterprises.

Karl Marx

A 19th-century philosopher, economist, and political theorist, best known for his critical analysis of capitalism and his influence on the development of socialism and communism.

Scientific Socialist

An individual who advocates for socialism using scientific analysis of society and economy, typically associated with the approaches of Karl Marx and Friedrich Engels.