Development Costs Can Be Capitalized and Amortized in the Income

question 20

Multiple Choice

Development costs can be capitalized and amortized in the income statement over several periods while the full amount is tax deductible in the period in which the development costs were incurred.Which of the following accounting items will be generated by this temporary difference?

• A) Deferred tax liability
• B) Deferred tax revenue
• C) Deferred tax asset
• D) Deferred tax expense

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Definitions:

Contingency Approach

A management theory that suggests the best way to manage an organization depends on the specific circumstances and variables present.

Situational Management

Situational management is an adaptive leadership approach that advocates for adjusting management style and strategies based on the specific circumstances and needs of the situation.

McGregor

Douglas McGregor developed the Theory X and Theory Y concept, representing two opposing perceptions of employee motivation and behavior.

Theory X

A management theory that assumes employees are inherently lazy and will avoid work if they can, suggesting the need for strict oversight and control.