Which of the Following Statements Appears Correct for a Corporation

question 120

Multiple Choice

Which of the following statements appears correct for a corporation with a negative net income in both the present and the last fiscal year?

• A) This year's loss can be carried back, but last year's loss cannot be used.
• B) Neither of the losses can be used to reduce taxes.
• C) Both losses can be carried forward but not backward.
• D)Both losses can be carried forward and backward, within certain time limits

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Definitions:

Wechsler Intelligence Scale

A series of standardized tests used to measure intelligence and cognitive ability in adults and children.

Reliability

The consistency and dependability of a test, measurement, or system to produce the same results under consistent conditions.

Cultural Fairness

The principle of ensuring that assessments, decisions, and treatments do not favour or discriminate against any culture.

Validity

The extent to which a test, tool, or method accurately measures or evaluates what it is supposed to.