The Contra-Asset to the Deferred Tax Asset Account Is Called

question 53

Multiple Choice

The contra-asset to the deferred tax asset account is called ________.

• A)income tax benefit
• B)valuation allowance
• C)deferred tax liability
• D)allowance for doubtful accounts

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Definitions:

Gold Production

The process of extracting gold ore from the earth and refining it into pure gold.

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world in a given period of time, which includes the trade balance, foreign investments, and loans.

Flexible Exchange Rates

A currency system where the value of a currency in relation to others is determined by the foreign exchange market without direct government control.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.