Deferred Taxes and Tax Rates

How is the cash tax rate calculated, and what does it signal?

Taxes paid divided by pretax income; cash taxes paid this period.

Why does accounting income less than taxable income create a deferred tax asset?

More tax is paid today, creating a future tax benefit.

If cash tax rate is below effective tax rate, what is the likely interpretation?

The company is using deferred tax liabilities to defer taxes.

When does a deferred tax liability arise from a book-tax timing difference?

When accounting income exceeds taxable income.