Of the following temporary differences, which one ordinarily creates a deferred tax asset?

Question

Quizplus · Accepted Answer

Rent received in advance creates a temporary difference because the rent is recognized for accounting purposes when received in advance, but for tax purposes, it may not be recognized until the period in which it is earned. This difference creates a deferred tax asset because the company has already paid taxes on the rental income but has not yet recognized it for tax purposes.

Of the Following Temporary Differences, Which One Ordinarily Creates a Deferred