Which of the Following Is an Example of a Temporary

question 59

Multiple Choice

Which of the following is an example of a temporary difference that would result in a deferred tax liability?

• A) Use of straight-line depreciation for accounting purposes and an accelerated rate for income tax purposes
• B) Rent revenue collected in advance when included in taxable income before it is included in pretax accounting income
• C) Use of a shorter depreciation period for accounting purposes than is used for income tax purposes
• D) Investment losses recognized earlier for accounting purposes than for tax purposes

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Definitions:

Dependent Variable

The variable in an experiment that is expected to change or respond as a result of manipulations of the independent variable.

Experimental Treatment

A new or novel intervention or therapy being tested or evaluated for its effectiveness in treating a condition or disease.

Influenced Factor

An element that affects or alters the outcome of a process or situation.

Sexual Arousal

A physiological and psychological state of being awake or reactive to sexual stimuli.