Which One of the Following Statements Regarding Operating Losses Is

question 44

Multiple Choice

Which one of the following statements regarding operating losses is false?

• A) The tax benefit of an operating loss carryback is recognized in the period of loss as a current receivable on the balance sheet.
• B) Temporary differences and operating loss carryforwards are accounted for similarly.
• C) The journal entry to recognize an operating loss carryback would include a credit to Income Tax Benefit from Operating Loss Carryback.
• D) The tax benefit of an operating loss carryforward is to be recognized in the period of loss as a current receivable.

---

Definitions:

Biological Clock

An internal timing mechanism in organisms that controls the cycle of daily activities, such as sleep and wakefulness, based on a roughly 24-hour period.

Subjective Night

The time during a 24-hour period when the biological clock is telling a person to go to sleep.

Melatonin Flux

Variations in the levels of melatonin, a hormone that regulates sleep-wake cycles, typically influenced by light exposure.

Disruptive Malaise

A state of general discomfort or uneasiness, whose exact cause is difficult to identify, that disrupts regular functioning or well-being.