Saved Bookmarks
| 1. |
What Is A Deferred Tax Asset And Why Might One Be Created? |
|
Answer» Deferred TAX asset ARISES when a company actually pays more in taxes to the IRS than they show as an expense on their income statement in a REPORTING period. Differences in revenue recognition, expense recognition (such as warranty expense), and net operating losses (NOLs) can create deferred tax assets. Deferred tax asset arises when a company actually pays more in taxes to the IRS than they show as an expense on their income statement in a reporting period. Differences in revenue recognition, expense recognition (such as warranty expense), and net operating losses (NOLs) can create deferred tax assets. |
|