Which of the Following Is an Example of a Temporary

question 90

Multiple Choice

Which of the following is an example of a temporary difference,which could result in a deferred tax asset?

• A) Gain on disposal of an asset when included in taxable income before it is included in pre-tax accounting income
• B) Use of straight-line depreciation for accounting purposes and an accelerated rate for income tax purposes
• C) Gross margin on instalment sales is recognized for accounting purposes before it is included in taxable income in the income tax return
• D) Prepayments of expenses in year of payment; recognition of expense for accounting purposes occurs in a later year.

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Definitions:

Renal Column

Cortical tissue located between the pyramids in the kidney, part of the kidney's supportive and structural system.

Renal Pyramid

Cone-shaped structures located in the kidneys, consisting of tubules that transport urine from the cortical, outer part of the kidney to the calyces and renal pelvis.

Hilum

The hilum is a depression or notch where structures such as blood vessels and nerves enter or exit an organ.

Renal Vein

A vein carrying filtered blood away from the kidney back towards the heart.