Which of the Following Types of Evidence Indicate That a Valuation

question 110

Multiple Choice

Which of the following types of evidence indicate that a valuation allowance is needed to reduce the deferred tax asset?

• A) history of profits
• B) excess of appreciated asset values over basis
• C) existing contracts or sales backlogs, which will generate significant future income
• D) short carryback or carryover periods

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at a particular price level, reaching a state of market balance.

Equilibrium Price

The economic value where the quantity of goods brought to the market equals the quantity taken by consumers.

Technological Advancement

The process of innovation and improvement in technology, leading to more efficient production methods and new products.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded.