A deferred tax asset is the

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A deferred tax asset arises when a company has a deductible temporary difference that will result in lower tax in the future. This means that the company will be able to reduce its taxable income and pay less tax in the future, which is a future tax consequence of a deductible temporary difference. Option A is incorrect because it refers to a taxable temporary difference which would result in a deferred tax liability instead of a deferred tax asset. Option B is incorrect because it refers to a current tax consequence instead of a future tax consequence. Option D is incorrect because it refers to a taxable temporary difference which would result in a deferred tax liability instead of a deferred tax asset.

A Deferred Tax Asset Is the