A deferred tax asset represents a:

Name: A deferred tax asset represents a:
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A deferred tax asset represents a future income tax benefit that arises due to temporary differences between financial accounting and tax accounting. These differences are expected to reverse in the future, resulting in lower taxable income and tax expense. For example, a company may have a deferred tax asset for a net operating loss carryforward that can be used to offset future taxable income and reduce its tax liability.

A Deferred Tax Asset Represents A