Which, If Any, of the Following Provisions Cannot Be Justified

question 93

Multiple Choice

Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

• A)Nonrecognition of gain allowed for involuntary conversions.
• B)Net operating loss carryover provisions.
• C)Carryover of excess charitable contributions.
• D)Use of the installment method to recognize gain.
• E)Carryover of excess capital losses.

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Definitions:

Federal Depository Bank

A financial institution that is authorized to hold deposits for the Federal Reserve System and process related transactions.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, including social security and Medicare taxes in the United States.

Contingent Liabilities

Potential financial obligations that may occur depending on the outcome of a future event.

Future Event

A prospective occurrence or situation that has yet to happen, often considered in planning and strategy contexts.