Which of the Following Results in a Deferred Tax Asset

question 58

Multiple Choice

Which of the following results in a deferred tax asset?

• A) Tax basis of an asset is less than its book.
• B) Operating loss or tax credit carryforwards exist.
• C) Expenses are deductible earlier for tax purposes than for book purposes.
• D) Revenue or gains are recognized earlier for book purposes than for tax purposes.

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Definitions:

Signature

A person's handwritten mark or sign, typically used for authorization or as a form of identification in documents.

Primarily Liable

Being directly responsible or obligated to satisfy a debt or legal obligation, especially before any other party.

Right To Reimbursement

The legal right of a party to be compensated for expenses they have incurred on behalf of another party.

Investor

A person or entity that allocates capital with the expectation of receiving financial returns.