Which of the Following Statements Is Correct

question 91

Multiple Choice

Which of the following statements is correct?

• A)If a corporation has a net operating loss,it can carry the loss back three years and then forward twenty years.
• B)A net capital loss can be carried back three years and then forward five years.
• C)The first estimated payment of a corporation is due on the 15^th day of the third month of the fiscal year.
• D)A corporation is entitled to a charitable deduction of 10% of its gross income before certain items.

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Definitions:

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Inventory Turnover Rate

A measure of how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Net Income

Profit remaining after all expenses, taxes, and deductions have been subtracted from total revenue.