What Confidence Level Must Management Have That a Tax Position

question 72

Multiple Choice

What confidence level must management have that a tax position will be sustained on audit before it can recognize any portion of the related deferred tax asset under ASC 740?

• A)More likely than not.
• B)Reasonable basis.
• C)Substantial authority.
• D)Probable.

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Definitions:

Participant Observation

A qualitative research method where the researcher actively engages in the community or group being studied to gather insights and understand social dynamics.

Existing Statistics

Pre-collected numerical data that represents information or inputs on a variety of topics within a society or specific field of study.

Experiments

Methodical trials or tests carried out under controlled conditions to investigate hypotheses, observe effects, and establish causation in scientific studies.

Statistically Significant

A measure indicating that the likelihood of an observed effect occurring by chance is low, often used in research to validate findings.