A Corporation May Carry a Net Capital Loss Forward Five

question 7

True/False

A corporation may carry a net capital loss forward five years to offset capital gains in future years but it may not carry a net capital loss back to offset capital gains in previous years.

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Definitions:

Payables Policy

A company's set of guidelines or practices for managing its accounts payable, including terms of payment and prioritizing of payments.

Sales Policy

The strategic approach and guidelines a company follows for selling its products or services.

Operating Cash Flows

The cash generated by a company’s normal business operations.

Payment Obligation

A financial commitment that requires a party to pay a certain amount of money by a specified date.