Which of the Following Statements Best Describes a Valuation Allowance

question 25

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

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Definitions:

Thoracic Vertebrae

The twelve vertebrae located in the mid-back section of the vertebral column, providing attachment for the ribs and making up part of the thoracic cage.

Cervical Vertebrae

The seven vertebrae located in the neck region of the spine, known individually as C1 through C7.

Transverse Foramina

Holes found in the transverse processes of cervical vertebrae through which the vertebral artery and vein and sympathetic nerves pass.

Cervical Vertebrae

The uppermost seven vertebrae in the vertebral column, located in the neck, designated C1 through C7.