Which of the Following Items Indicate That a Company Does

question 43

Multiple Choice

Which of the following items indicate that a company does not need a valuation allowance?

• A) existing sales contracts that will produce sufficient income to realize the deferred tax asset
• B) excess of appreciated asset value over tax basis sufficient to realize the deferred tax asset
• C) a strong history of earnings without considering the deferred tax asset
• D) All of the above are correct.

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Definitions:

Self-Perception Theory

A theory suggesting that individuals develop attitudes and opinions by observing their own behavior and concluding what attitudes must have caused them.

Cognitive Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, causing discomfort that leads to an attempt to change beliefs or behaviors to reduce the dissonance.

Balance

The ability to maintain bodily equilibrium or stability through the coordination of sensory functions and motor control.

Self-Perception Theory

A theory that suggests individuals develop their attitudes by observing their own behavior and concluding what attitudes must have caused them.