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MBA Finance Interview Question:
What is a deferred tax asset and why might one be created?
Submitted by: MuhammadDeferred 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.
Submitted by: Muhammad
Differences in revenue recognition, expense recognition (such as warranty expense), and net operating losses (NOLs) can create deferred tax assets.
Submitted by: Muhammad
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