CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Under U.S. GAAP what is the most likely effect of the reversal of a valuation allowance related to a deferred tax asset on net income?
A. A decrease
B. An increase
C. No effect
Explanation: The reversal of a valuation allowance increases the deferred tax assets and decreases the deferred tax expense, increasing net income.

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