Intermediate Accounting II Quiz 5

Intermediate Accounting II Quiz 5 - Intermediate Accounting...

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Intermediate Accounting II Quiz # 5 Group Date Name Which of the following creates a permanent difference between financial income and taxable income? a. Interest received on municipal bonds b. Completed contract method of recognizing construction revenue c. Unearned rent revenue d. Accelerated cost recovery on plant and equipment Which of the following creates a temporary difference between financial and taxable income? a. Interest on municipal bonds b. Accelerated cost recovery on plant and equipment c. Fines from violation of law d. Premiums paid for officer's life insurance (company is beneficiary) Which of the following temporary differences ordinarily creates a deferred tax asset? a. Accrued warranty costs b. Depreciation c. Installment sales d. Amortization of goodwill An item that would create a permanent difference in pretax financial and taxable incomes would be a. using accelerated depreciation for tax purposes and straight-line depreciation for book purposes. b.
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This note was uploaded on 04/03/2011 for the course ACOOUNTING 3 taught by Professor Gvetadze during the Spring '11 term at Georgian.

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Intermediate Accounting II Quiz 5 - Intermediate Accounting...

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