Accounting for a deferred tax asset and deferred tax liability (tax accounting vs financial (book) accounting), basic understanding of each, (A) Deferred Tax Asset: Any temporary difference that in reversing itself causes Taxable Income to be lower than Financial (Book) Income, (B) Deferred Tax Liability: Any temporary difference that in reversing itself causes Taxable Income to be higher than Financial (Book) Income, tax accounting results in tax payable where financial accounting results in tax expense, the difference between tax payable & tax expense results in either a deferred tax asset or deferred tax liability, deferred tax assets & liabilities are a result of timing (recognition) of revenues or expenses between tax accounting & financial accounting, detailed accounting by Allen Mursau