Which Statement Is True

question 34

Multiple Choice

Which statement is true?

• A)A company should carry forward losses when they have had prior years' taxable income.
• B)A company might carry their tax losses forward if they have exhausted the ability to carry losses backward.
• C)Carrying forward tax losses results in immediate cash flow to the company.
• D)Canadian tax laws allow corporations to carry an operating loss backward for 3 years and forward indefinitely, and capital losses backward for 3 years and forward indefinitely.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Repression

In psychoanalytic theory, the unconscious exclusion of painful impulses, desires, or fears from the conscious mind.

Defense Mechanism

psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Repression

A defense mechanism where distressing thoughts and feelings are unconsciously blocked from conscious awareness.