Which of the Following Statements Best Describes a Valuation Allowance

question 53

Multiple Choice

Which of the following statements best describes a valuation allowance as it relates to accounting for income taxes?

• A)A valuation allowance is a contra account to deferred tax assets only.
• B)A valuation allowance is a contra account to deferred tax liabilities only.
• C)A valuation allowance is a contra account to deferred tax assets and liabilities.
• D)A valuation allowance is a contra account to noncurrent deferred tax assets only.

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Definitions:

Low-Context

A communication style that relies on explicit, direct, and detailed verbal messages for understanding.

Active Listening

A communication technique that involves paying full attention to the speaker, understanding their message, and responding thoughtfully.

Directions Of Communication

Refers to the pathways or routes that communication takes within an organization, including upward, downward, and horizontal flows.

Vague Words

Words that lack specificity and clarity, often leading to misunderstandings or ambiguous interpretations in communication.