Which of the Following Statements Regarding Net Operating Losses Generated

question 119

Multiple Choice

Which of the following statements regarding net operating losses generated in 2016 is true?

• A) Corporations can carry net operating losses back two years and forward up to 15 years.
• B) A corporation may elect to forgo carrying a net operating loss back and instead carry it over to future years.
• C) When a corporation applies a net operating loss carryover, it reports a favorable, permanent book-tax difference in the amount of the applied carryover.
• D)Marginal tax rates are irrelevant in determining the tax benefit of applying a net operating loss carryback or carryover.
• E)None of these

---

Definitions:

Competitive Parity Budgeting

A budgeting method where a company's advertising budget is set to match competitors' outlays to prevent market share loss.

Market Share

The segment of a market that is under the influence of a specific company or product.

Integrated Communication Program

A strategy that combines all forms of communication, such as advertising, public relations, and social media, to provide a consistent message across all platforms.

Public Relations

involves managing the dissemination of information between an organization and the public to shape perceptions and maintain a positive image.