A Temporary Difference That Is Deductible in Future Years Is

question 77

Multiple Choice

A temporary difference that is deductible in future years is called:

• A) A deferred tax liability
• B) A deferred tax asset
• C) A permanent tax asset
• D) A permanent tax liability

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Definitions:

Writing

The representation of language in a textual medium through the use of a set of signs or symbols.

After-Acquired Property

Property not owned by a debtor at the time of a security agreement but acquired later and subsequently becomes subject to the security interest.

Security Interest

A security interest is a legal right granted by a debtor to a creditor over the debtor's property, ensuring the property may be used as collateral for the repayment of a debt.

Consumer Good

A consumer good is a product intended for final consumption by individuals or households as opposed to being used in the production of other goods or services.