Question

Future deductible amounts will cause:

the recording of a deferred tax asset.

a decrease in pretax financial income in future years.

the recording of a deferred tax liability.

taxable income to be more than pretax financial income in the future.

Answer 1

The correct answer is

the recording of a deferred tax asset.

Explaination

When ever any amount is deductible in future, which means tax has been paid on it as it may has been allowed on payment basis hence not deducted while calculating taxes,but in future on fullfillment of certain terms, it will be deductible as expense due to which in future their will be lesser outflow of taxes . So deffered tax asset will be created for such amount as in future taxable income will be less than financial income due to deductible amount