Which of the Following Statements Regarding Credits Is Correct

question 143

Multiple Choice

Which of the following statements regarding credits is correct?

• A)Business expenses are generally refundable credits.
• B)Business credits that are generated in one year but are not utilized in that year expire.
• C)Business credits that are generated in one year but are not utilized in that year may be carried forward to future years but not back to a prior year.
• D)Business credits that are generated in one year but are not utilized in that year may be carried back to the previous year and then forward to future years.

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Definitions:

Equilibrium Quantity

The amount of goods or services supplied that is equal to the amount demanded at the market equilibrium price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Consumer Surplus

The difference between the highest price a consumer is willing to pay for a good or service and the actual market price they pay.