Under US GAAP, a Deferred Tax Asset Must Be Realized When

question 30

Multiple Choice

Under U.S. GAAP, a deferred tax asset must be realized when:

• A) realization is probable.
• B) realization is possible.
• C) realization is more likely than not.
• D) realization is greater than 75% likely.

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Definitions:

Action Potential

A brief electrical impulse that a neuron uses to transmit information along its axon, essentially an on-off signal.

Axon

A narrow, elongated extension of a neuron that usually transmits electrical signals from the cell body of the nerve cell.

Refractory Period

The period immediately following the transmission of a nerve impulse or the contraction of a muscle during which a nerve or muscle is unresponsive to further stimulation.

Threshold

The point or level at which something begins or changes.