Which of the following circumstances creates a future deductible amount?

Question

Quizplus · Accepted Answer

Accrued warranty expenses create a future deductible amount because they represent expenses that have been accrued but will not be paid until a future period. This means they will be deductible in the future when they are paid, creating a future tax benefit. Non-taxable interest on municipal bonds does not create a future deductible amount because it is not a deductible expense. Sales of property using the installment method and prepaid operating expenses do not create future deductible amounts because they are both currently deductible expenses.

Which of the Following Circumstances Creates a Future Deductible Amount