CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Deductible temporary differences result in a deferred tax ______ when the carrying amount of a liability is ______ than its tax base.

A. asset; more
B. asset; less
C. liability; more
Correct Answer: A

Deductible temporary differences result in a deferred tax asset when the tax base of an asset exceeds its carrying amount and, in the case of a liability, when the carrying amount of the liability exceeds its tax base.

User Contributed Comments 4

User Comment
boddunah liability is key word.
cleopatraliao should be B, shouldnt it??
cleopatraliao sorry my bad its the carrying amt of a liability not asset!;P
farhan92 liability shoots the sheriff and becomes an asset
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