1. using different depreciation methods on financial statements and tax returns will:

a. have no effect upon the balance sheet, only the income statement

b. have no effect upon either the balance sheet or the income statement.

c. create a deferred tax liability that will be paid in a future year

d. using different appreciation methods on financial statements and tax returns is not allowable

2. deli company has used the same accelerated depreciation method on both its books and tax returns for many years. This is an example of which accounting principle?

a. cost basis

b. materiality

c. consistency

d. conservatism

3. The materiality concept of accounting allows an exponential that is not material in dollar amount to be recorded as an expense of the current period even though the exponential may actually benefit several periods.

true or false?