What Is a Deferred Tax Asset

question 42

Multiple Choice

What is a deferred tax asset?

• A)A deductible temporary difference that results in future taxable income being less than accounting income.
• B)The amount of income tax recoverable in future periods as a result of deductible temporary differences, losses carried forward, or tax credits carried forward.
• C)A deductible temporary difference that results in future taxable income being higher than accounting income.
• D)The amount of income tax payable in future periods as a result of taxable temporary differences.

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Definitions:

Construct Validity

Refers to the extent to which a test measures what it claims to measure and accurately assesses the concept it is intended to assess.

Structured Interviews

Interviews wherein a predetermined checklist of questions usually asked of all applicants is used.

Unstructured

A flexible approach or method that lacks a predefined format, often leading to improvised or spontaneous outcomes.

Reliable

The quality of being consistently good in quality or performance, able to be trusted.