Which of the Following Types of Evidence Indicate That a Valuation

question 26

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

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Definitions:

Behavioral

Relating to the actions or reactions of a person or animal in response to external or internal stimuli.

Behaviorism

A branch of psychology that studies observable behavior, emphasizing the role of environmental factors in shaping behavior, excluding subjective factors like feelings or motives.

Functionalism

A psychological perspective that considers mental life and behavior in terms of active adaptation to the person's environment.

Structuralism

An early school of psychology that aimed to analyze the structure of the mind by breaking down mental processes into their basic components.