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
A
You might also like to view...
Which of the following is TRUE when a new partner is admitted to a partnership by purchasing an existing partner's interest?
A) Only the transfer of cash from the new partner to the existing partner is recorded. B) Admission of the new partner affects the total asset amount. C) Admission of the new partner affects the total equity amount. D) The only journal entry the partnership records is the transfer of partner's capital.
Tangible assets on the balance sheet should include:
a. equipment. b. inventory. c. trademarks. d. investments. e. accrued insurance.
________ markets buy goods and services for further processing
A) Business B) Reseller C) Wholesale D) Consumer E) Retail
Gross profit per square foot is utilized by a supermarket owner to assign space among merchandise assortments within a department. Larger amounts of space go to the product categories and brands with the highest profitability per square foot
This retailer determines space needs by _____. a. the sales–productivity ratio b. market segment product groupings c. the model stock approach d. the law of diminishing returns