Which of the Following Items Indicate That a Company Does

question 43

Multiple Choice

Which of the following items indicate that a company does not need a valuation allowance?

• A) existing sales contracts that will produce sufficient income to realize the deferred tax asset
• B) excess of appreciated asset value over tax basis sufficient to realize the deferred tax asset
• C) a strong history of earnings without considering the deferred tax asset
• D) All of the above are correct.

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Definitions:

Promoter Sequence

A specific region of DNA where RNA polymerase binds and initiates transcription of the gene.

Redundancy

The duplication of critical components or functions of a system with the intention of increasing reliability of the system.

Genetic Code

The set of rules by which information encoded within genetic material (DNA or mRNA sequences) is translated into proteins by living cells.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth through natural selection, genetic drift, mutations, and gene flow.