Which Method Is Used to Determine the Order in Which

question 20

Multiple Choice

Which method is used to determine the order in which unused tax credits are carried forward and back?

• A) First-in, first-out method
• B) Last-in, first-out method
• C) First-in, last-out method
• D) None of the above

---

Definitions:

Income Bonds

Bonds that pay interest only if the issuing company has sufficient earnings to cover the interest payments.

Company's Earnings

The profit a company generates over a specific period, reflecting its financial performance and profitability.

Floating Rate

An interest rate that fluctuates over time with the market or an underlying benchmark.