A significant decrease in the deferred tax asset account is relevant with respect to assessing earnings quality.

Name: A significant decrease in the deferred tax asset account is relevant with respect to assessing earnings quality.
Brand: Quizplus
Rating: 4.7 (55 reviews)

Question

Quizplus · Accepted Answer

The significant decrease in the deferred tax asset account may indicate lower expected future taxable income, which can result in a lower benefit from deferred tax assets. This can impact the quality of reported earnings and may require further analysis.

A Significant Decrease in the Deferred Tax Asset Account Is