Valley Inc

question 97

Multiple Choice

Valley Inc.incurred a $71,400 net operating loss this year.Which of the following statements is true?

• A)Valley can use the NOL only as a carryforward deduction.
• B)Valley can use the NOL only as a carryback deduction.
• C)Valley can elect to use the NOL as a carryforward deduction.
• D)None of the above is true.

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Definitions:

Modern Techniques

Contemporary methods used in various fields to improve efficiency, accuracy, and productivity.

Capital Budgeting

The process undertaken by companies to evaluate and prioritize investments in long-term assets based on their potential returns.

Individual Cash Flows

The specific instances of cash being received or expended by an entity, which can include income from sales, financing, investments, or operational activities.

Subjectively

Based on personal feelings, tastes, or opinions rather than external facts or evidence.