Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?
A)Nonrecognition of gain allowed for involuntary conversions.
B)Net operating loss carryback and carryover provisions.
C)Carry over of excess charitable contributions.
D)Use of the installment method to recognize gain.
E)Carry over of excess capital losses.

Question

Quizplus · Accepted Answer

Nonrecognition of gain allowed for involuntary conversions is not related to mitigating the effects of the annual accounting period concept. It is more about deferring recognition of gain due to specific circumstances, rather than smoothing income over different periods.

Which, If Any, of the Following Provisions Cannot Be Justified