An Example of a "Deductible Amount" Occurs When

question 25

Multiple Choice

An example of a "deductible amount" occurs when:

• A) A gain on instalment sales is recognized for tax purposes as the receivable is collected, but was earlier recognized for accounting purposes when the sale was made.
• B) Accelerated depreciation is used for tax purposes but straight-line depreciation is used for accounting purposes.
• C) Product warranty costs recognized for tax purposes as the warranty conditions are met but recognized for accounting purposes earlier on the accrual basis.
• D) Expenses are recognized more quickly for taxes than for accounting purposes.

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Definitions:

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