Which of the following is a temporary difference classified as a revenue or gain that is taxable after it is recognized in financial income?

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An installment sale accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes is a temporary difference classified as a revenue or gain that is taxable after it is recognized in financial income. Choices A and B are also temporary differences, but they are classified as liabilities rather than revenues or gains. Choice D is not a temporary difference because the interest received on a municipal obligation is not taxable.

Which of the Following Is a Temporary Difference Classified as a Revenue