A Deductible Temporary Difference Is Expected to Lead to the Payment

question 3

Multiple Choice

A deductible temporary difference is expected to lead to the payment of:

• A)more tax in the future and gives rise to a deferred tax asset
• B)less tax in the future and gives rise to a deferred tax asset
• C)more tax in the future and gives rise to a deferred tax liability
• D)less tax in the future and gives rise to a deferred tax liability.

---

Definitions:

Gambler's Fallacy

The incorrect belief that future probabilities are altered by past events in a random process.

State Lottery

A government-regulated form of gambling which involves the drawing of numbers for a prize.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Infant Vocalisations

The earliest forms of vocal communication emitted by infants, including cooing and babbling sounds.