What is a deferred tax asset?

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Quizplus · Accepted Answer

A deferred tax asset is a future benefit that results from temporary differences between accounting and tax basis for an asset or liability. These temporary differences create either deferred tax assets or liabilities, depending on whether they will result in future tax deductions or increases in taxable income. A deferred tax asset is the amount of income tax recoverable in future periods as a result of deductible temporary differences.

What Is a Deferred Tax Asset