Which One of the Following Statements Is Correct for a Corporation

question 35

Multiple Choice

Which one of the following statements is 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:

Market Equilibrium

A situation in which the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers.

Supply Curve

Graphically represents the relationship between the price of a good and the quantity of that good that suppliers are willing and able to sell.

Quantity

The amount or number of a material or product available or produced.