Which of the Following Statements Does Not Accurately Describe the Accounting

question 30

Multiple Choice

Which of the following statements does not accurately describe the accounting for net operating losses?

• A)A firm must assess future profitability when determining the amount of a deferred income tax asset.
• B)The net operating loss must be carried back two years.
• C)The net operating loss can be both carried forward and backward.
• D)The deferred income tax asset must be allocated between the current and noncurrent balance sheet classifications.

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Definitions:

Remained

Stayed in the same place or condition; continued to be.

Doubled

Increased by 100 percent or made twice as large in size, amount, or number.

Quadrupled

To increase fourfold, or to become four times as large in quantity or value.

Imports

Goods and services brought into one country from another for sale, often reflecting a country's demand for products that are not produced within its borders.