A deductible temporary difference is expected to lead to the payment of:
A)more tax in the future and gives rise to a deferred tax asset
B)less tax in the future and gives rise to a deferred tax asset
C)more tax in the future and gives rise to a deferred tax liability
D)less tax in the future and gives rise to a deferred tax liability.

Question

Quizplus · Accepted Answer

A deductible temporary difference results in less tax in the future because it reduces taxable income, leading to a deferred tax asset.

A Deductible Temporary Difference Is Expected to Lead to the Payment