Which of the Following Creates a Deferred Tax Liability

question 18

Multiple Choice

Which of the following creates a deferred tax liability?

• A) An unrealized loss from recording inventory at lower of cost or market.
• B) Accelerated depreciation in the tax return.
• C) Estimated warranty expense.
• D) Subscriptions collected in advance.

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Definitions:

Acromioclavicular Joint

A joint at the top of the shoulder where the acromion of the scapula and the clavicle meet.

Suprascapular Notch

A notch in the scapula that allows passage of the suprascapular nerve and vessels.

Acetabulum

The socket in the hip bone that receives the head of the thigh bone to form the hip joint.

Greater Sciatic Notch

A deep notch in the ilium bone of the pelvis through which the sciatic nerve passes.