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:

Market

An area or arena in which commercial dealings are conducted.

Alternatives

Other options or choices available in a given situation, often considered when the primary option is not viable.

Substitute

An alternative product or service that a consumer can choose over another, often influencing competitiveness and market dynamics.

Threat

Any circumstance or event with the potential to cause harm to a system, organization, individual, or property.