acct312 Week 1 quiz latest 2017
Week 1 quiz
1.Question Which causes a temporary difference between taxable and pretax accounting income?
The dividends received deduction
Life insurance proceeds received due to the death of an executive
Investment expenses incurred to generate tax-exempt income
MACRS used for depreciating equipment
Question 2.Which difference between financial accounting and tax accounting ordinarily creates a deferred tax liability?
Interest income on municipal bonds
Proceeds from life insurance received due to the death of an executive
None of the above
Question 3. Which temporary difference ordinarily creates a deferred tax asset?
Installment sales for tax reporting
Accelerated depreciation for tax reporting
Completed-contract method for long-term construction contracts for tax reporting
Rent collected in advance
Question 4. Under current tax law, generally a net operating loss may be carried back
Question 5. In reconciling net income to taxable income, interest earned on municipal bonds is
a temporary difference.
a permanent difference.
a reversing difference.