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:

Statement Form

A logical structure that can represent propositions through the use of variables and symbols.

Truth Table

A mathematical table used in logic to determine the validity of expressions based on the truth or falsity of their variables.

Main Connective

The main connective in a logical expression is the operator that determines the overall value of the expression, binding its components.

Truth Values

Assignments of factuality, indicating the veracity of a statement, with the primary values being true and false.