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:

Ledger

A book or electronic record used to record all of a company's financial transactions in accounts.

Ledger

A book or collection of financial accounts where transactions are recorded, typically categorized by type.

Journal

A book or digital record where all financial transactions are initially recorded, also known as the book of first entry.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statements, balance sheets, and statements of cash flows.