A Valuation Allowance Can Reduce Both a Deferred Tax Asset

question 8

True/False

A valuation allowance can reduce both a deferred tax asset and a deferred tax liability.

---

Definitions:

Proper Nouns

Names used for an individual person, place, or organization, spelling out unique entities.

Sport

Physical activities engaged in for recreational purposes or competitive sportsmanship, often governed by a set of rules or customs.

Understands Words

The capability of recognizing and comprehending the meaning of words, an essential aspect of language development.

Referential Language Style

Use of language primarily as a means for labeling objects.