USGAAP and IFRS Require That Some Temporary Differences Create Deferred

question 89

Multiple Choice

U.S.GAAP and IFRS require that some temporary differences create deferred tax assets.The temporary differences include the

• A)provision for estimated uncollectible accounts when they recognize sales on account, only.
• B)provision for estimated warranty cost in the year the warranted products are sold, only
• C)recognition of tax-exempt interest income, only.
• D)payment of municipal penalties and fines, only.
• E)provision for estimated uncollectible accounts when they recognize sales on account, and the provision for estimated warranty cost in the year the warranted products are sold.

---

Definitions:

Polar

A molecule with uneven distribution of charges, leading to positive and negative ends, affecting solubility and melting/boiling points.

Benzene

A chemical compound with the formula C6H6, known as an aromatic hydrocarbon and used as a starting material in the production of numerous chemicals.

Alkane Solvents

Solvents composed of alkanes, which are hydrocarbons containing only single bonds between carbon atoms, making them nonpolar and good for dissolving similar substances.

Soluble

The ability of a substance to be dissolved in a solvent, forming a homogeneous mixture at the molecular or ionic level.