Which of the Following Does NOT Create a Temporary Book-Tax

question 54

Multiple Choice

Which of the following does NOT create a temporary book-tax difference?

• A)Deferred compensation.
• B)Bad-debt expense.
• C)Depreciation expense.
• D)Dividends received deduction.

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Definitions:

Fixed Cost

Expenses that do not fluctuate with changes in production volume, staying constant even as production levels vary.

Liability Insurance

A type of insurance that protects an individual or business from the risk of being sued and held legally liable for something such as malpractice, injury, or negligence.

Step-Variable Cost

A cost that remains fixed for a certain level of production or activity, but jumps to a higher amount once a certain threshold is exceeded.

Helpline

A service providing information and support to people in need, typically available via telephone or the internet.