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:

Sperm Cells

Sperm cells are male reproductive cells responsible for fertilizing female egg cells to initiate pregnancy.

Chromosomes

Thread-like structures located in the nucleus of animal and plant cells, made of DNA and protein, containing genes.

Meiosis I

The first division of meiosis, a type of cell division that reduces the chromosome number by half and leads to the production of gametes or spores.

Meiosis II

The second division phase in meiosis, following Meiosis I, where sister chromatids are separated, resulting in four haploid cells.