Which of the Following Creates a Deferred Tax Liability

question 18

Multiple Choice

Which of the following creates a deferred tax liability?

• A) An unrealized loss from recording inventory at lower of cost or market.
• B) Accelerated depreciation in the tax return.
• C) Estimated warranty expense.
• D) Subscriptions collected in advance.

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Definitions:

McDonald

Refers to McDonald's Corporation, a global fast-food chain known for its hamburgers, french fries, and breakfast items.

State Governments

The executive, legislative, and judicial branches that govern each state in the United States, operating under its own state constitution.

Judith Miller

An American journalist and writer known for her coverage of Iraq's Weapons of Mass Destruction (WMD) program both before and after the 2003 invasion, which was later criticized for inaccuracies.

Withhold Information

The act of deliberately not providing or disclosing certain information, which can be for various reasons, including strategic, privacy, or protective purposes.