Deferred tax assets are recognized for the future tax benefits of _____ differences.

Social Studies

1 answer:

xz_007 [3.2K]1 year ago

8 0

Deferred tax assets are recognized for the future tax benefits of temporary differences.

What are Deferred tax assets?

On a company's balance sheet, a deferred tax asset is something that lowers future taxable revenue.
An item on the balance sheet that results from an overpayment or an advance payment of taxes is known as a deferred tax asset.
A deferred tax liability, which represents unpaid income taxes, is the opposite of this.
When there are discrepancies between tax laws and accounting principles or when there is a carryover of tax losses, a deferred tax asset may arise.

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