请问题目是什么意思？

问题如下：

Question A company understating the valuation allowance for deferred tax assets:

选项：

A.A.overstates both tax expenses and the value of the deferred tax assets.

B.B.overstates tax expenses and understates the value of the deferred tax assets.

C.C.understates tax expenses and overstates the value of the deferred tax assets.

解释：

1. Incorrect because the understatement of valuation allowance for deferred tax assets would understate, not overstate, tax expenses.

2. Incorrect because the understatement of valuation allowance for deferred tax assets would understate tax expenses and overstate the value of the assets on the balance sheet.

3. Correct because the understatement of valuation allowance for deferred tax assets would understate tax expenses and overstate the value of the assets on the balance sheet.

• describe indicators of balance sheet quality