Which of the Following Is an Example of a Temporary

question 34

Multiple Choice

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

• A) Gain on disposal of an asset when included in taxable income before it is included in pretax accounting income
• B) Use of straight-line depreciation for accounting purposes and an accelerated rate for income tax purposes
• C) Gross margin on installment sales is recognized for accounting purposes before it is included in taxable income in the income tax return
• D) Prepayments of expenses in year of payment;recognition of expense for accounting purposes occurs in a later year

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Definitions:

Proactive Behaviours

Actions taken by individuals that are anticipatory, changeful, and self-initiated to influence themselves or their environment.

Proximal Socialization Outcomes

Immediate results that stem from the process of adapting and integrating into a new social environment or group.

Distal Socialization Outcomes

The long-term results of the socialization process, such as the integration into and acceptance by an organization’s culture.

Orientation Program

A structured introduction offered by an organization to acquaint new employees with its policies, procedures, culture, and the roles they will be assuming.