_____ 16. A deferred tax asset is the result of the taxes paid exceeding the tax expense on the financial statements.

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A deferred tax asset arises when the tax expense on the financial statements is less than the taxes paid. This occurs when there are temporary differences between the financial and tax reporting of certain items, such as depreciation or warranty expenses. The deferred tax asset represents the future tax savings that will be realized when these temporary differences reverse.

_____ 16 a Deferred Tax Asset Is the Result of the the Taxes