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

Question

Quizplus · Accepted Answer

Accrued warranty expense is a temporary difference that creates a deferred tax asset. This is because the tax deduction for the warranty expense is typically taken in a later period than the accrual on the financial statements, resulting in a temporary difference and a deferred tax asset. The other options listed do not necessarily create deferred tax assets.

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