Which of These Items Is Not an Adjustment to Taxable

question 59

Multiple Choice

Which of these items is not an adjustment to taxable income or net loss to compute current E&P?

• A)Dividends received deduction.
• B)Tax-exempt income.
• C)Net capital loss carryforward utilized in the current year from the prior-year tax return.
• D)Refund of prior-year taxes for an accrual-method taxpayer.

---

Definitions:

Open Account

a method of credit where the seller ships goods or provides services to a buyer under an agreement to bill them later or on a recurring basis.

Assets

Resources owned by a business, expected to bring future economic benefits.

Liabilities

Debts or financial responsibilities that a business has to other entities, requiring repayment over a period through the exchange of economic resources such as cash, products, or services.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, essentially representing the owner's claim against the company's assets.