CFA Practice Question

CFA Practice Question

The balance sheet tax amount that is expected to be recovered from future operations is the definition of the ______.
A. deferred tax asset
B. deferred tax liability
C. deferred income tax expense
Explanation: The deferred tax asset is based on financial reporting as opposed to the tax return.

User Contributed Comments 3

User Comment
danlan Does "recovered" mean paid? Is it a deferred tax liability (C)?
jayjunk "recovered" should mean "received" rather than "paid", so "deferred tax asset" is the correct answer.
mekc deferred tax asset = prepaid tax asset
You need to log in first to add your comment.