Revenue from Installment Sales Is Recognized in the Period Received

question 35

Multiple Choice

Revenue from installment sales is recognized in the period received for tax purposes and recognized in the period earned for accounting purposes.If these periods are different, this is an example of a

• A)permanent difference that gives rise to interperiod tax allocation
• B)permanent difference that does not give rise to interperiod tax allocation
• C)temporary difference that gives rise to interperiod tax allocation
• D)temporary difference that does not give rise to interperiod tax allocation

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Definitions:

Linear Regression Equation

An equation used to predict a dependent variable based on one or more independent variables, fitting a straight line to the observed data.

Horizontal Line

A horizontal line is a straight line that goes from left to right or right to left, maintaining the same elevation at all points.

Scatterplot

Graphical display of paired scores on two variables measured at the interval or ratio level of measurement.

Variables

Attributes, characteristics, or conditions that can change or vary within or across subjects in a study.