Which of the Following Is an Example of a Temporary

question 59

Multiple Choice

Which of the following is an example of a temporary difference that would result in a deferred tax liability?

• A) Use of straight-line depreciation for accounting purposes and an accelerated rate for income tax purposes
• B) Rent revenue collected in advance when included in taxable income before it is included in pretax accounting income
• C) Use of a shorter depreciation period for accounting purposes than is used for income tax purposes
• D) Investment losses recognized earlier for accounting purposes than for tax purposes

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Definitions:

Physiological Response

The body's automatic reactions to external stimuli, including changes in metabolism, heart rate, and muscle tension.

Breathing Exercises

Techniques aimed at improving respiratory function or reducing stress by consciously controlling the breath.

Cue Management

Techniques aimed at controlling environmental or psychological triggers that influence behavior.

Social Disclosure

Sharing information about oneself in order to enhance lifestyle change objectives.