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:

Magnetic Field

A region around a magnetic material or a moving electric charge within which the force of magnetism acts.

Spinal Reflexes

Automatic responses to certain stimuli that are mediated by the spinal cord, without direct involvement of the brain.

Painful Stimulus

A physical or psychological trigger that causes pain or discomfort to an individual.

Motor Response

A reaction or response of the body's muscles to a stimulus, such as moving your hand away from a hot surface.