Under Current Tax Law, Generally a Net Operating Loss May

question 61

Multiple Choice

Under current tax law, generally a net operating loss may be carried back:

• A) 2 years.
• B) 5 years.
• C) 15 years.
• D) 20 years.

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Definitions:

Debt-To-Equity Ratio

A formula displaying the relative use of debt and equity from shareholders in the financial strategy for a company's assets.

Average Collection Period

calculates the average number of days it takes for a business to receive payments from its customers for invoices issued.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Debt-To-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.