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Finance

1. Which of the following activities result in an increase in a firm’s cash?

a. pay dividends

b decrease accounts payable

c. repurchase of common stock

d. decreased fixed assets

2. An operating loss incurred by a corporation

a. Must be carried forward unless the company has had 2 loss years in a row.

b. Is carried back 2 years, then carried forward up to 20 years following the loss.

c. Is carried back 5 years and forward 3 years.

d. Cannot be used to reduce taxes in other years except with special permission from the IRS.

e. Can be carried back 3 years of forward 10 years whichever is more advantageous to the firm.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92375097

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