Question

True or False: A deferred tax asset represents the increase in taxes refundable in future years as a result of deductible temporary differences existing at the end of the current year.

Answer 1

Answer:True.

A deferred tax is is an item on a comapany's balance sheet that may be used to reduce taxable income in future.

In a situation when a company overpays it's tax or pays in advance the taxes are eventually returned as tax relief.

Step-by-step explanation: