A deferred tax asset or liability is recognized for the future tax effects of all temporary differences and carryforwards.

Name: A deferred tax asset or liability is recognized for the future tax effects of all temporary differences and carryforwards.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deferred tax assets and liabilities are recognized for the future tax effects of temporary differences and carryforwards, as they represent future tax consequences of events that have been recognized in the financial statements.

A Deferred Tax Asset or Liability Is Recognized for the Future