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:

Role

The function or part played by a person or thing in a particular situation, often defined by societal norms, expectations, and individual behavior.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, known for its addictive properties and intense effects on the central nervous system.

Euphoria

A feeling or state of intense excitement and happiness.

Excitation

In psychology, a state of arousal or heightened physiological activity, often in response to a stimulus.