Which one of the following statements regarding operating losses is not true?

Question

Quizplus · Accepted Answer

The tax benefit of an operating loss carryforward is not recognized in the period of loss as a current receivable. Instead, it is recognized as a deferred tax asset on the balance sheet. The other options are true statements about operating losses. Temporary differences and operating loss carryforwards are both recognized as deferred tax assets. The journal entry to recognize an operating loss carryback includes a credit to Income Tax Benefit from Operating Loss Carryback, which reduces the tax liability in the current period.

Which One of the Following Statements Regarding Operating Losses Is