Which of the Following Statements Concerning Deferred Taxes Is Correct

question 40

Multiple Choice

Which of the following statements concerning deferred taxes is correct?

• A) Deferred taxes will not be found in asset section of the balance sheet.
• B) Deferred taxes arise from permanent differences in GAAP and tax accounting.
• C) Deferred taxes will only decrease when a cash payment is made.
• D) Deferred taxes arising from the depreciation of a specific asset will ultimately reduce to zero as the item is depreciated.

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Definitions:

Higher-Order Conditioning

A process in classical conditioning where a conditioned stimulus is paired with a new neutral stimulus, creating a second (often weaker) conditioned response.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by being delivered or removed after the behavior occurs.

Punisher

In behavioral psychology, any stimulus that decreases the likelihood of a behavior being repeated.

Strengthen Behavior

The process of increasing the likelihood that a particular response will occur, often through reinforcement or practice.