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

a. Only to income taxes receivable due to net operating loss carrybacks.

b. To both deferred tax assets and liabilities.

c. Only to deferred tax assets.

d. Only to deferred tax liabilities.

Question

Armani Tyler

Business

24 May, 20:50

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

a. Only to income taxes receivable due to net operating loss carrybacks.

b. To both deferred tax assets and liabilities.

c. Only to deferred tax assets.

d. Only to deferred tax liabilities.

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Answers (1)

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Valerie · Answer 1

c. Only to deferred tax assets.

Explanation:

The valuation allowance consists of a reserve that is used to offset the differed tax assets and is based on part of the tax and for its more likely that the tax benefits will be raised by the reporting entity. The valuation is a contract account to deferred tax assets with more than 50% of the probability of being used in the future due to the non-availability and is just like a provision of the doubtful debts.

The valuation allowance account that is used in conjunction with deferred taxes relates:a. Only to income taxes receivable due to net operating loss carrybacks.b. To both deferred tax assets and liabilities.c. Only to deferred tax assets.d. Only to deferred tax liabilities.

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

a. Only to income taxes receivable due to net operating loss carrybacks.

b. To both deferred tax assets and liabilities.

c. Only to deferred tax assets.

d. Only to deferred tax liabilities.