Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax liability?

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Prepaid utilities are deductible for tax purposes when they are paid, but are expensed for financial accounting purposes when they are used. This creates a temporary difference that results in a deferred tax liability. The other options do not create temporary differences or do not result in tax consequences that would create a deferred tax liability.

Which of the Following Differences Between Financial Accounting and Tax