One Example of a Temporary Difference Between Financial and Tax

question 143

Multiple Choice

One example of a temporary difference between financial and tax reporting results from

• A)rent expense.
• B)tax-exempt interest from municipal bonds.
• C)life insurance proceeds resulting from the death of an executive.
• D)depreciation of long-term assets.

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Definitions:

Axioms

Self-evident truths or universally accepted principles that form the basis for reasoning or argument.

Implicit Beliefs

Refers to the attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner.

Cultural Statements

Expressions or manifestations that convey the values, beliefs, and norms of a society or group.

Sociocultural Influences

Factors stemming from society and culture that affect individual thoughts, behaviors, and emotions.