Which One of the Following Statements Regarding Operating Losses Is

question 73

Multiple Choice

Which one of the following statements regarding operating losses is not true?

• A)The tax benefit of an operating loss carryback is recognized in the period of loss as a current receivable on the balance sheet.
• B)Temporary differences and operating loss carryforwards are accounted for similarly.
• C)The journal entry to recognize an operating loss carryback would include a credit to Income Tax Benefit from Operating Loss Carryback.
• D)The tax benefit of an operating loss carryforward is to be recognized in the period of loss as a current receivable.

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Definitions:

Financial Accounting

The field of accounting focused on the preparation of financial statements for external stakeholders, adhering to standardized guidelines to accurately reflect a company's financial condition.

Managerial Accounting

The field of accounting focused on providing financial information within a company to assist in decision-making and budget management.

Timeliness

The quality of providing information or taking action within an appropriate or expected time frame, often critical for decision-making processes.

Total Quality Management

A management approach focused on improving the quality of an organization's outputs, including goods and services, through continual improvement of internal practices.