Answer Happy

1 Which of the following differences between financial
accounting and tax accounting ordinarily creates a deferred tax
liability?
A_ Depreciation early in the life of an asset.
B_ Rent collected in advance.
C_ Unrealized losses from recording investments at fair
value.
D_ None of these answer choices are correct.
2. Which of the following differences between financial
accounting and tax accounting ordinarily creates a deferred tax
liability?
A_ None of these answer choices are correct.
B_ Proceeds from life insurance received due to death of an
executive.
C_ Interest income on municipal bonds.
D_ Prepaid utilities.
3. Which of the following differences between financial
accounting and tax accounting ordinarily creates a deferred tax
asset?
A_ Prepaid expenses.
B_ Installment sales for which taxable income recognized when
cash is collected.
C_ Unrealized loss from recording inventory impairments.
D_ None of these answer choices are correct.
4. Which of the following differences between financial
accounting and tax accounting ordinarily creates a deferred tax
asset?
A_ Unrealized gain from recording investments at fair value.
B_ Subscriptions collected in advance.
C_ None of these answer choices are correct.
D_ Depreciation early in the life of an asset.