Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following situations will create a deferred tax liability?

Using accelerated depreciation for tax purposes and straight-line depreciation for financial reporting

Recognizing warranty expenses earlier for tax purposes than for financial reporting

Recognizing revenue earlier for tax purposes than for financial reporting

Using straight-line depreciation for both tax and financial reporting

Previous problemNext problem

Verified step by step guidance

Understand the concept of deferred tax liability: It arises when taxable income is temporarily lower than accounting income due to timing differences between tax and financial reporting.

Analyze the first option: Using accelerated depreciation for tax purposes and straight-line depreciation for financial reporting creates a timing difference. Accelerated depreciation reduces taxable income faster in the early years compared to straight-line depreciation, leading to a deferred tax liability.

Evaluate the second option: Recognizing warranty expenses earlier for tax purposes than for financial reporting reduces taxable income earlier, which would create a deferred tax asset, not a liability.

Examine the third option: Recognizing revenue earlier for tax purposes than for financial reporting increases taxable income earlier, which would also create a deferred tax asset, not a liability.

Review the fourth option: Using straight-line depreciation for both tax and financial reporting does not create any timing differences, so no deferred tax liability or asset would arise.