What Confidence Level Must Management Have That a Tax Position

question 72

Multiple Choice

What confidence level must management have that a tax position will be sustained on audit before it can recognize any portion of the related deferred tax asset under ASC 740?

• A)More likely than not.
• B)Reasonable basis.
• C)Substantial authority.
• D)Probable.

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Definitions:

Collection Of The Note

The process of receiving the payment due from the issuer as specified in the note payable.

Deposits In Transit

Funds that have been transferred or deposited by a company but not yet reflected in the bank's records.

Notes Collected

Notes collected refer to the process of receiving payment or settling the amount due on promissory notes that a company holds, impacting its cash flow.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement to ensure consistency and accuracy.