Which of the Following Items Will Not Create a Deferred

question 114

Multiple Choice

Which of the following items will not create a deferred tax liability?

• A) Revenues or gains are recognized earlier for book purposes than for tax purposes.
• B) Expenses or losses are deductible earlier for tax purposes than for book purposes.
• C) Tax basis of an asset is less than its book basis.
• D) Operating loss or tax credit carryforwards exist.

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Definitions:

Conservationists

Individuals or groups who advocate for the protection and preservation of natural environments and wildlife.

Wind Erosion

The process by which the wind moves soil, sand, or rock particles, leading to the shaping of the land or the removal of soil.

Desertification

The transformation of productive soil into desert, often due to factors like drought, the clearing of forests, or unsuitable farming practices.

Conservation Biology

Field of applied biology that surveys biodiversity and seeks ways to maintain and use it nondestructively.