The Use of a Deferred Tax Asset Account Is Subject

question 11

Multiple Choice

The use of a Deferred Tax Asset account is subject to all of the following restrictions, except

• A)if the future taxable income is not probable, the deferred tax asset account will be removed.
• B)the deferred tax asset account is regularly reviewed.
• C)when conditions change a previously unrecognized deferred tax asset account may be recognized.
• D)the allowance method for recognizing the deferred tax asset account is the required standard.

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Definitions:

Microvilli

Small, fingerlike extensions of the plasma membrane of cells, increasing surface area for absorption.

Plicae Circularis

Internal folds of the intestinal lining that increase surface area for absorption of nutrients.

Absorption

The process by which substances are taken up from the environment and enter the bloodstream or cells.

Hepatic Portal Vein

Portal vein formed by the superior mesenteric and splenic veins and entering the liver.