Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A) In determining if a valuation allowance is needed, positive evidence is considered more persuasive than negative evidence.
• B) In determining if a valuation allowance is needed, negative evidence is considered more persuasive than positive evidence.
• C) In determining if a valuation allowance is needed, negative and positive evidence must be evaluated equally.
• D)In determining if a valuation allowance is needed, only negative evidence is evaluateD.Both positive and negative evidence must be evaluated equally in determining if a valuation allowance is necessary.

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Definitions:

Shirking

The act of avoiding work or responsibilities, often covertly, within an employment context.

Franchising

A business model allowing individuals or entities to operate a business under the name and system of an established brand in exchange for a fee and ongoing royalties.

Franchisee

An individual or business entity that purchases the right to operate a branch of a franchise using the franchisor’s trademarks, systems, and business model.

Earnings

The amount of money that an individual or corporation receives in exchange for providing a good, service, or through investing capital.