A Company Reduces a Deferred Tax Asset If It Is

question 2

True/False

A company reduces a deferred tax asset if it is possible that it will not realize some portion of the deferred tax asset.

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Definitions:

Rely

Depend on or trust in something or someone for support or maintenance.

Voidable

A contract or transaction that is legally valid but may be declared void by one of the parties.

Unenforceable

Refers to a contract or clause that, due to legal deficiencies or fairness issues, cannot be compelled or enforced by law.

Annullable

Refers to something that can be declared void or invalid, usually in a legal context.