Which of the Following Statements Regarding Credits Is Correct

question 143

Multiple Choice

Which of the following statements regarding credits is correct?

• A)Business expenses are generally refundable credits.
• B)Business credits that are generated in one year but are not utilized in that year expire.
• C)Business credits that are generated in one year but are not utilized in that year may be carried forward to future years but not back to a prior year.
• D)Business credits that are generated in one year but are not utilized in that year may be carried back to the previous year and then forward to future years.

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Definitions:

Eurodollars

Dollar-denominated deposits at foreign banks or foreign branches of American banks.

Futures Contract

An agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

CAPM

The Capital Asset Pricing Model, a theoretical framework used to determine the expected return on an investment, considering risk and the time value of money.

APT

Stands for Arbitrage Pricing Theory, a financial model that estimates the returns on assets based on their risk relative to macroeconomic factors.