Which of the Following Cases Would Cause the Tax Liability

question 18

Multiple Choice

Which of the following cases would cause the tax liability to be greater than tax expense?

• A)Receipt of cash for rent prior to the period in which services are performed.
• B)Income from long-term construction contracts using the percentage-of-completion approach for financial accounting and the completed-contract approach for income taxes.
• C)Installment sale income recognized for financial purposes at the time of sale and when cash is collected for taxes.
• D)Accelerated depreciation for taxes and straight-line depreciation for income taxes.

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Definitions:

Forgiveness

The act of letting go of resentment or anger towards someone who has committed a mistake, offense, or harm, without holding the act against them.

Relationships

Bonds or connections between individuals, which can be based on factors like affection, kinship, common interests, or social commitments.

Forgiveness

The conscious, deliberate decision to release feelings of resentment or vengeance toward a person or group who has harmed you.

Offenses

Acts that violate legal rules or social norms, ranging from minor infractions to serious crimes.