Which of the Following Statements Best Describes a Valuation Allowance

question 53

Multiple Choice

Which of the following statements best describes a valuation allowance as it relates to accounting for income taxes?

• A)A valuation allowance is a contra account to deferred tax assets only.
• B)A valuation allowance is a contra account to deferred tax liabilities only.
• C)A valuation allowance is a contra account to deferred tax assets and liabilities.
• D)A valuation allowance is a contra account to noncurrent deferred tax assets only.

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Definitions:

Windows Tool

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BIOS/UEFI Option

Settings within the Basic Input/Output System (BIOS) or Unified Extensible Firmware Interface (UEFI) that allow users to configure and optimize their system’s hardware and boot sequence.

Virtualization Software

Software technology that allows the creation and management of virtual instances of physical hardware, operating systems, storage devices, or network resources.

Hardware Capabilities

The physical and functional features that a piece of hardware supports, determining the tasks it can perform.