Which of the Following Items Is Not Considered Evidence in Determining

question 40

Multiple Choice

Which of the following items is not considered evidence in determining if a valuation allowance is necessary?

• A)A cumulative book loss over some period of time.
• B)Management projects future taxable income based on a backlog of signed contracts.
• C)A net operating loss expired unused in the current year.
• D)Management can implement a tax strategy to create future taxable income, but it will be detrimental to the future profitability of the company.

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Definitions:

WAIS-III

The third edition of the Wechsler Adult Intelligence Scale, an IQ test designed to assess cognitive ability in adults.

WISC-IV

The Wechsler Intelligence Scale for Children-Fourth Edition, a tool designed to measure cognitive ability in children between the ages of 6 and 16.

Factual Information

Data that is based on real, observable events or objects, confirmed to be true through evidence.

IQ Tests

Standardized tests designed to measure human intelligence and cognitive abilities compared to the average population.