Question: Listed below are 10 causes of temporary differences For each temporary

Listed below are 10 causes of temporary differences. For each temporary difference indicate the balance sheet account for which the situation creates a temporary difference.

Temporary Difference
_____ 1. Accrual of loss contingency, tax-deductible when paid.
_____ 2. Newspaper subscriptions; taxable when received, recognized for financial reporting when earned.
_____ 3. Prepaid rent, tax-deductible when paid.
_____ 4. Accrued bond interest expense, tax-deductible when paid.
_____ 5. Prepaid insurance, tax-deductible when paid.
_____ 6. Unrealized loss from recording investments available for sale at fair value (tax-deductible when investments are sold).
_____ 7. Bad debt expense; allowance method for financial reporting; direct write-off for tax purposes.
_____ 8. Advance rent receipts on an operating lease (as the lessor), taxable when received.
_____ 9. Straight-line depreciation for financial reporting; accelerated depreciation for tax purposes.
_____ 10. Accrued expense for employee postretirement benefits, tax-deductible when subsequent payments are made.

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  • CreatedJuly 05, 2013
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