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:

Destination Country

The country to which goods, services, or people are being sent or migrating to.

Labor Migration

Labor migration is the movement of workers from one location to another, often between countries or regions, in search of better employment opportunities and living conditions.

Implicit Costs

The opportunity costs associated with a company's use of resources it owns, representing potential income lost.

Future Earnings

The expected profit or income generated by an investment, job, or business over a future period.