Which of the following is an example of a temporary difference which would result in a deferred tax asset?     a. Rent revenue collected in advance included in taxable income before it is included in accounting income b. Investment gains recognized earlier for accounting purposes than for tax purposes c. Use of straight-line method for accounting purposes and an accelerated rate for tax purposes d. Use of a longer depreciation period for accounting purposes than is used for tax purpose

Q: Future Tax Deductions A. Result in deferred tax liabilities. B.Rresult in deferred tax assets.…

A: Future tax deductions are the tax expenses that are to be deducted in the future period but were due…

Q: temporary difference that would result in a deferred tax liability is O Excess of tax depreciation…

A: A deferred tax liability represents an obligation to pay taxes in the future. Temporary…

Q: s) Which of the following statements is true about temporary book-tax differences? (N O They are…

A: Temporary book-tax differences refer to the differences that arise between the pretax book income…

Q: A valuation allowance would exist as a contra account to the deferred tax assets if it is:…

A: In the financial accounts of the company, taxes that are paid in advance but have not yet been paid…

Q: List examples of temporary differences that create: deferred tax assets. Deferred tax liability.

A: A deferred tax asset is a balance sheet item that results from an excess or early tax payment. A…

Q: Discontinued operations, and unusual gains and losses are both reported net of tax in the income…

A: Lets understand the basics.Discontinued operation is a operation which is closed by the business. In…

Q: When assessing realizability of deferred tax assets, management must consider positive and negative…

A: The objective of the question is to identify which of the given options would not be considered as…

Q: The entry to recognize that a portion of a deferred tax asset would more likely than not be not…

A: Income tax actual paid and income tax expenses some time differ because of deferred income…

Q: Using the straight-line method of depreciation for reporting purposes and accelerateddepreciation…

A: To offset the amount of a deferred tax asset , valuation allowance is used.  A deferred tax asset is…

Q: A net operating loss occurs when tax-deductible expenses exceed taxable revenues. Tax laws permit…

A: Definition:   Net Operating Loss Carryforward: The net operating loss is considered a negative…

Q: The basic issue in deciding whether to record a valuation allowance for a deferred tax asset is…

A: A deferred tax asset is something that reduces future taxable income on a company's balance sheet.…

Q: Which statement is false? a) Deferred taxes are the product of temporary difference in the…

A: Taxes refers to the amount that is charged by the government to individuals and organizations on the…

Q: Select all that are true with respect to depreciation. Depreciation is a cash flow outflow at the…

A: Form 1040 Schedule 1 is used to report certain types of income that are not listed on the main 1040…

Q: Which of the following indicates that a decision has precedential value for future cases?

A: Temporary book-tax differences arise when there is a difference between the amount of income or…

Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: OThe establishment of…

A: Deferred tax asset: When book profits of entity is less than taxable profits it results in deferred…

Q: Of the following temporary differences, which one ordinarily creates a deferred tax asset? O…

A: A deferred tax asset arises when a company has paid taxes in advance or paid more taxes than…

Q: the depreciation method that is allowable under the income tax act is referred to as straight- line,…

A: The depreciation method that is allowable under the income tax act is referred to as "capital cost…