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.

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Definitions:

All-Or-None Response

A neuron’s reaction of either firing (with a full-strength response) or not firing.

Neural Impulses

Electrical signals that travel along neurons, transmitting messages throughout the nervous system.

Sympathetic System

Part of the autonomic nervous system that prepares the body for 'fight or flight' responses, increasing heart rate, dilating airways, and mobilizing energy.

Reuptake

The process by which neurotransmitters are taken back into the neurotransmitter vesicles in the nerve cells after they have been released.