The Valuation Allowance Account That Is Used in Conjunction with Deferred

question 153

Multiple Choice

The valuation allowance account that is used in conjunction with deferred taxes relates:

• A) Only to deferred tax liabilities.
• B) To both deferred tax assets and liabilities.
• C) Only to deferred tax assets.
• D) Only to income taxes receivable due to net operating loss carrybacks.

---

Definitions:

Nitrogen-Containing Base

An organic molecule with nitrogen that serves as a fundamental building block of the nucleic acids DNA and RNA.

Phosphate

An inorganic chemical compound containing phosphorus and oxygen, vital for energy transfer and storage in biological systems.

DNA Helicase

An enzyme that unwinds the DNA helix, separating the two strands and allowing them to be copied during DNA replication.

Semiconservative Replication

The method by which DNA replicates, where each original strand serves as a template for a new strand, resulting in two DNA molecules, each with one old and one new strand.