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:

Lower Control Limit

The threshold in control charting below which the process variability is considered to be in a state of statistical control but indicating potential performance issues.

Control Charts

Tools used in quality control to monitor, control, and improve process performance over time by charting the values of a statistical measure and comparing them to predetermined limits.

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time.

Control Charts

Graphical tools used to determine if a manufacturing or business process is in a state of statistical control.