- CFA Exams
- CFA Level I Exam
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 27. Income Taxes
- Subject 4. Temporary versus Permanent Differences
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
Explanation: Or when the carrying amount of an asset is less than its tax base.
User Contributed Comments 2
| User | Comment |
|---|---|
| CJPerugini | Liability = Opposite of Asset |
| xray123 | Good point CJPerugini. |