How Do the Net Operating Loss Provisions in the Tax

question 82

Essay

How do the net operating loss provisions in the tax law mitigate the effect of the annual accounting concept?

---

Definitions:

Original Cost

The initial purchase price or acquisition cost of an asset or investment.

Statement of Cash Flows

It's a fiscal summary that tracks changes in balance sheet entries and the impact of income on cash and equivalents, sorting these modifications by operating, investing, and financing functions.

Indirect Method

A cash flow statement preparation method that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Operating Activities

Operating activities include the primary, day-to-day tasks and transactions related to running a business, which contribute to generating revenue.