Which of the Following Temporary Differences Creates a Deferred Tax

question 80

Multiple Choice

Which of the following temporary differences creates a deferred tax asset in the year in which it originates?

• A) Accelerated tax depreciation in excess of straight-line book depreciation
• B) Prepayment income reported on the tax return prior to being reported on the income statement
• C) Gain reported on the income statement prior to being reported on the tax return
• D) Prepayment deduction reported on the tax return prior to being reported on the income statement

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Definitions:

Monosaccharides

The simplest form of carbohydrates, consisting of single sugar molecules like glucose and fructose, that serve as energy sources.

Reducing Sugars

Sugars capable of acting as reducing agents, having free aldehyde or ketone groups that allow them to reduce other compounds, commonly tested by Benedict's or Fehling's solution.

Ketose

A type of monosaccharide (simple sugar) where the carbonyl group is a ketone, found in several biochemical pathways.

Aldose

A type of carbohydrate that contains an aldehyde group as its carbonyl functional group.