CFA Practice Question

There are 1201 practice questions for this topic.

CFA Practice Question

Deductible temporary differences result in a deferred tax ______ when the tax base of an asset is ______ than its carrying amount.
A. asset; more
B. asset; less
C. liability; more
Explanation: Or when the tax base of the liability is less than its carrying amount.

User Contributed Comments 1

User Comment
ColonelCFA This question can also be answered by realizing that B and C are exact opposites of each other thus cancelling each other out. Leaving A.
You need to log in first to add your comment.