A deferred tax asset represents the increase in taxes refundable in future years as a result of deductible temporary differences existing at the end of the current year.

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A deferred tax asset represents the potential future tax benefits that a company may receive due to deductible temporary differences that exist between their accounting and tax records at the end of the current year. These differences can result in lower taxable income in the future and, therefore, increased tax refunds.

A Deferred Tax Asset Represents the Increase in Taxes Refundable