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:

Symbolic Racists

Individuals who believe they are not prejudiced but hold negative attitudes towards a racial or ethnic group based on cultural or behavioral stereotypes rather than overt racial biases.

Prejudiced

Holding preconceived opinions or judgments about someone or something without proper knowledge or experience, often negative and directed towards specific groups.

Racial Disparities

The differences in treatment and outcomes that people of different races experience in various areas such as healthcare, education, and criminal justice.

Reward For Application

A principle in psychology and behavioral science that suggests positive outcomes or rewards following the application of a specific behavior or skill encourage repeat behavior.