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What Is a Deferred Tax Asset

Question 36

Multiple Choice

What is a deferred tax asset?


A) A deductible temporary difference that results in future taxable income being less than accounting income.
B) The amount of income tax recoverable in future periods as a result of deductible temporary differences, losses carried forward, or tax credits carried forward.
C) A deductible temporary difference that results in future taxable income being higher than accounting income.
D) The amount of income tax payable in future periods as a result of taxable temporary differences.

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