Which Method Does Not Use "Temporary Differences" to Account for Income

question 21

Multiple Choice

Which method does not use "temporary differences" to account for income tax expense?

• A)The taxes payable method.
• B)The deferral method.
• C)The accrual method.
• D)The tax allocation method.

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Definitions:

NSF Check

A check that cannot be processed because the account on which it is drawn lacks sufficient funds, standing for "non-sufficient funds."

Bank Reconciliation

The process of comparing and matching the balances of an entity's accounting records with corresponding bank statements to ensure accuracy.

Journal Entry

A record in the accounting ledger that notes every financial transaction of a business, including the accounts affected and the date of the transaction.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, typically managed by a designated petty cash custodian.