A Deferral Is Like an Exclusion in That It Does

question 117

True/False

A deferral is like an exclusion in that it does not have a current tax effect, but it differs in that an exclusion is never subject to taxation, whereas a deferral will be subject to tax at some point of time in the future.

---

Definitions:

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, determining prices of goods and services.

Private Property

Lawful entitlements to own, utilize, and transfer property.

Market System

An economic system in which market forces, such as supply and demand, determine the production and distribution of goods and services.

Capitalism

An economic system characterized by private ownership of the means of production and the creation of goods or services for profit.