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Question
Which of the following transactions would not create a temporary difference?
A. A sale recorded using the installment method for book purposes.
B. The cash collection from a life insurance policy on a company executive.
C. A cash collection for services to be provided during the next period.
D. The use of the percentage-of-completion method for book purposes.
Answer
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Related questions
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Because covenant compliance can be jeopardized by mandated changes in accounting principles, many loan agreements have financial covenants that rely on the accounting rules in place when the loan is first granted.
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A. only the administrative costs of operations.
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C. negative restrictions.
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B. borrowers.
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