A Net Operating Loss Carryover That Occurs in a Company's

question 22

Multiple Choice

A net operating loss carryover that occurs in a company's second year of operations

• A)May cause a company to report a tax benefit in the current period income statement.
• B)Has no effect on income tax expense of the current period because no taxes are paid.
• C)Causes a company to report a deferred income tax liability for taxes that are not paid currently.
• D)Results in future taxable amounts.

---

Definitions:

Stepper Motor

An electric motor that moves in discrete steps, allowing precise control of position and speed.

Electrical Pulses

Rapid, transient changes in the electrical potential or voltage, often used as signals in various devices.

Tachometer

An instrument used to measure the rotation speed of a shaft or disk, as in a motor or other machine.