payments are made (This is a variation of E 16-6, modified to focus on the balance sheet accounts related to the deferred tax amounts.) 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. re unts 1. Accrual of loss contingency, tax-deductible when paid 2. Newspaper subscriptions;taxable when received, recognized for financial reporting whern 16-2 the performance obligation is satisfied -3. Prepaid rent; tax-deductible when paid 4. Accrued bond interest expense; tax-deductible when paid 5. Prepaid insurance; tax-deductible when paid (continued)