1. When a taxpayer has unused losses from multiple NOL years, reduce taxable income in chronological order for the NOL tax years, beginning with the:
a) Year that has the smallest loss.
b) Year that has the largest loss.
c) Previous tax year.
d) Earliest allowable tax year.
2. The primary disadvantage to a company in NOT taking a cash discount offered by a vendor (for example to pay the invoice within 10 days of receipt of invoice and receive a 2% reduction in the amount due) is ...
A. that it shortens the Operating Cycle.
B. that it increases the average time period to liquidate company's Inventory.
C. The Cash can be used for other business purposes.
D. by not taking advantage of the discount the company is essentially borrowing from the vendor which is generally creating an expensive form of short term financing.
E. All of the above.