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.