identify whether the item is describing what results in a deferred tax asset (DTA) or a deferred tax liability (DTL) or neither (NA).

Tax basis of liabilities is less than financial reporting basis. (DTA, DTL or NA)

Taxes will be higher in the future. (DTA, DTL or NA)

Example: accelerated depreciation (financial deducts lower amount, tax deducts higher amount so taxes payable is less for tax purposes) (DTA, DTL or NA)

Expense or loss on the tax return that is not reported on the income statement. (DTA, DTL or NA)

Example: warranty expense (financial can deduct now, tax only when cash paid) (DTA, DTL or NA)

Revenue or gain reported on the tax return that is not currently reported in the income statement. (DTA, DTL or NA)