A corporation can't have an increase in deferred tax assets and an increase in deferred tax liabilities in the same year.

Question

Quizplus · Accepted Answer

It is possible for a corporation to have an increase in both deferred tax assets and deferred tax liabilities in the same year. This could occur if the corporation has different timing differences for recognizing income and expenses for tax purposes versus financial reporting purposes.

A Corporation Can't Have an Increase in Deferred Tax Assets