Question

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

Answer 1

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.

To know more about Deferred tax assets refer:

brainly.com/question/15392879

#SPJ4