An Example of a "Deductible Temporary Difference" Occurs When

question 23

Multiple Choice

An example of a "deductible temporary difference" occurs when

• A) the installment sales method is used for tax purposes,but the accrual method of recognizing sales revenue is used for financial reporting purposes.
• B) warranty expenses are recognized on the accrual basis for financial reporting purposes but recognized as the warranty conditions are met for tax purposes.
• C) accelerated depreciation is used for tax purposes but straight-line depreciation is used for accounting purposes.
• D) the completed-contract method of recognizing construction revenue is used for tax purposes,but the percentage-of-completion method is used for financial reporting purposes.