Some items are treated as a deduction for tax purposes when they are paid but are recognised as expenses when they are accrued for accounting purposes.Which of the following items are of that type?

Question

Quizplus · Accepted Answer

Warranty costs are usually deducted for tax purposes in the year they are incurred or paid, but for accounting purposes, they are recognized as an expense when the related revenue is recognized or when the warranty obligations are incurred.

The other options listed do not typically have different tax and accounting treatment, and are generally either deductions for tax purposes when they are incurred or recognized as expenses when they are accrued. Therefore, Options B, C, and D are not correct in this context.

Some Items Are Treated as a Deduction for Tax Purposes