If a Company's Deferred Tax Asset Is Not Reduced by a Valuation

Multiple Choice

If a company's deferred tax asset is not reduced by a valuation allowance, the company believes it is:

A) Probable that sufficient taxable income will be generated in future years to realize the full tax benefit.
B) Probable that sufficient financial income will be generated in future years to realize the full tax benefit.
C) More likely than not that sufficient taxable income will be generated in future years to realize the full tax benefit.
D) More likely than not that sufficient financial income will be generated in future years to realize the full tax benefit.