Deferred Taxes May Occur Due to the Use of

question 68

Multiple Choice

Deferred taxes may occur due to the use of

• A)different tax schedules
• B)different depreciation methods for taxes and financial reporting
• C)long-term equipment
• D)different cash flow methods

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Definitions:

Cash Flows

The inflows and outflows of cash and cash equivalents, reflecting the operational, investing, and financing activities of a business.

Wages and Salaries

Compensation paid to employees for their labor, including hourly pay (wages) and fixed annual or monthly pay (salaries).

Operating Activities

Operating activities involve the core business functions of a company, including production, distribution, and sales, determining cash flow from primary business operations.

Interest Expense

The monetary burden placed on an entity due to borrowing capital over a specified timeframe.