Which, If Any, of the Following Provisions Cannot Be Justified

question 139

Multiple Choice

Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

• A)Nonrecognition of gain allowed for involuntary conversions.
• B)Net operating loss carryback and carryover provisions.
• C)Carry over of excess charitable contributions.
• D)Use of the installment method to recognize gain.
• E)Carry over of excess capital losses.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It denotes the distribution of a portion of the company's earnings.

Home Mortgage Securitization

The process of bundling home loans into securities that are then sold to investors.

Mortgage Originators

Mortgage Originators are institutions or individuals that work with borrowers to complete a mortgage transaction, including the creation and processing of home loans.

Asset Liquidity

A measure of how easily an asset can be converted into cash without significantly affecting its market price.