Which of the Following Would Result in a Deferred Tax

question 6

Multiple Choice

Which of the following would result in a deferred tax asset?

• A) Using straight-line depreciation for the books and accelerated depreciation for tax.
• B) Rent received in advance.
• C) Warranty provision.
• D) Point of sale revenue recognition for the books, and cost recovery method of revenue recognition for tax.

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Definitions:

Management By Objectives

A management model that involves setting specific objectives that are mutually agreed upon by employees and management.

Productivity

Refers to the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Planning Process

A series of steps followed to create strategies, allocate resources, and implement actions to achieve goals.

Participatory Planning

An approach to planning which involves stakeholders or community members in the decision-making process to better meet their needs and ensure more effective outcomes.