A deferred tax asset is the result of the taxes paid exceeding the tax expense on the financial statements.

Name: A deferred tax asset is the result of the taxes paid exceeding the tax expense on the financial statements.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A deferred tax asset occurs when taxes paid or carried forward are greater than the tax expense shown on the income statement, indicating that the company has prepaid taxes or has taxable temporary differences that will result in lower taxes in the future.

A Deferred Tax Asset Is the Result of the Taxes