If Losses Are to Be Carried Forward the Amount Is

question 39

Multiple Choice

If losses are to be carried forward the amount is

• A) Multiplied by the expected future tax rate and is entered as a liability
• B) Entered in its entirety as a deferred tax liability
• C) Entered in its entirety as a prepaid tax under current assets
• D) Entered in its entirety as an extraordinary gain
• E) Multiplied by the expected future tax rate and entered as an asset

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Definitions:

Spontaneous Abortion

The medical term for a miscarriage, referring to the natural loss of a pregnancy before the fetus can survive outside the uterus.

Third Trimester

The final phase of a pregnancy, spanning from approximately the 28th week until delivery, characterized by significant growth and maturation of the fetus.

Dizygotic Twins

Also known as fraternal twins, are siblings born from two separate eggs fertilized by two different sperm cells, sharing about 50% of their genetic material.

Fertilized Egg

A fertilized egg, or zygote, is the result of the fusion of a human egg and sperm, marking the beginning of human development.