Answer:
An accrued warranty expense ordinarily creates a deferred tax asset.
Explanation:
An accounting term on a firm's balance sheet that is used to illustrate when a firm has overpaid on taxes and is due to some form of tax relief is referred to as a deferred tax asset.
A company that incurs tax loss can carry forward her incurred tax loss to reduce taxable income in future years.
Furthermore, a deferred tax asset is created by an accrued warranty expense.
