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:

Phosphate Bond

A chemical bond between a phosphorus atom and another atom, crucial in the storage and release of energy in living organisms.

ATP Channel Protein

A type of membrane protein that allows ATP molecules to move across cell membranes, often involved in cellular energy management.

Mitochondrial Matrix

The innermost compartment of mitochondria, enclosed by the inner membrane, containing enzymes for the citric acid cycle and DNA.

NADH

Nicotinamide adenine dinucleotide (NADH) is the reduced form of NAD+, an important coenzyme in cellular respiration, acting as an electron carrier.