For its first taxable year,UY Products Inc.generated a $124,950 net operating loss.The loss resulted in a deferred tax liability that will reverse over future years in which UY is allowed an NOL carryforward deduction.

Question

Quizplus · Accepted Answer

A net operating loss (NOL) results in a deferred tax asset, not a liability, as it represents future tax savings when the loss is carried forward to offset future taxable income.

For Its First Taxable Year,UY Products Inc