Which of the following will not result in a temporary difference?

Question

Quizplus · Accepted Answer

All of the options listed (product warranty liabilities, advance rental receipts, and installment sales) will result in temporary differences. Temporary differences arise when there's a discrepancy between the tax base of an asset or liability and its carrying amount in the financial statements, which will result in taxable or deductible amounts in the future. Each of these situations involves timing differences in recognizing revenues or expenses for financial reporting and tax purposes.

Which of the Following Will Not Result in a Temporary