Which of the following transactions would not create a temporary difference?

Question

Quizplus · Accepted Answer

The cash collection from a life insurance policy on a company executive is not a taxable event and hence will not create a temporary difference.

The other options would create temporary differences as follows:
A) The sale recorded using the installment method for book purposes will create a temporary difference because for tax purposes, the entire profit will be recognized in the year of sale.
C) The cash collection for services to be provided during the next period will create a temporary difference because for tax purposes, the revenue will be recognized only when the services are provided.
D) The use of the percentage-of-completion method for book purposes will create a temporary difference because for tax purposes, the revenue and expenses will be recognized differently based on the completion percentage.

Which of the Following Transactions Would Not Create a Temporary