Firms Recognize Deferred Tax Assets Only to the Extent That

question 78

Multiple Choice

Firms recognize deferred tax assets only to the extent that they expect to generate sufficient taxable income to realize the assets in the form of tax savings in the future.U.S.GAAP requires use of a deferred _____ to reduce the balance in the _____ account to the amount the firm expects to realize in tax savings in the future.

• A)tax asset valuation allowance; Deferred Tax Asset
• B)tax expense; Deferred Tax Asset
• C)tax asset valuation allowance; Deferred Tax Liability
• D)tax expense; Deferred Tax Liability
• E)tax expense; Deferred Tax Revenue

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Definitions:

Self-Determination

The understanding of skills, knowledge, and strengths that enable a person to make choices and initiate work tasks.

Intrinsic Motivation

Motivation that is driven by an interest or enjoyment in the task itself, rather than external pressures or rewards.

Need for Competence

The desire to interact effectively with the environment, to master tasks, and to achieve proficiency.

Need for Achievement

A psychological trait that drives an individual to pursue and attain goals.