Recognizing Tax Benefits in a Loss Year Due to a Loss

question 7

Multiple Choice

Recognizing tax benefits in a loss year due to a loss carryforward requires

• A) only a footnote disclosure.
• B) creating a new carryforward for the next year.
• C) creating a deferred tax asset.
• D) creating a deferred tax liability.

---

Definitions:

The Internet

A global network of interconnected computers and servers that enables the sharing of information and communication across the world.

Washington Consensus

represents a set of neoliberal economic policies that emphasize fiscal discipline, deregulation, trade liberalization, and privatization.

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade, protect domestic industries, or generate revenue.

Privatization

The process of transferring ownership or operation of a business, enterprise, agency, or public service from the public sector (government) to private individuals or organizations.