Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The possible answers are: - Accumulated Depreciation - Deferred Rent Revenue - Deferred Subscription revenue - Interest Payable - Liability-compensated future absences - liability-loss contingency

image text in transcribed

The possible answers are:

- Accumulated Depreciation

- Deferred Rent Revenue

- Deferred Subscription revenue

- Interest Payable

- Liability-compensated future absences

- liability-loss contingency

- loss on investments (unrealized OCI)

- prepaid insurance

- prepaid rent

- warranty liability

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. Balance Sheet Account Temporary Difference 1. Accrual of loss contingency, tax-deductible when paid. 2. Newspaper subscriptions, taxable when cash is received, recognized for financial reporting when 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. 6. Unrealized loss from recording investments at fair value; tax-deductible when investments are sold. 7. Warranty expense, estimated for financial reporting when products are sold: deducted for tax purposes when paid. Advance rent receipts on an operating lease as the lessor, taxable when received. Straight-line depreciation for financial reporting, accelerated depreciation for tax purposes. 10. Accrued expense for employee vacation days not yet taken; tax deductible when employee takes vacation in future. 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect 2-semester For Auditing & Assurance Services A Systematic Approach

Authors: Author

10th Edition

1259292045, 9781259292040

More Books

Students also viewed these Accounting questions

Question

Aware of the role of HRM in multinational corporations.

Answered: 1 week ago