Question

define carry back and carry forward concept used for adjustment of net operating loss of a
business.

Answer 1

Explanation:

An NOL Tax Loss Carryforward (also called a Net Operating Loss NOL Carryforward) is a mechanism that firms can use to carry forward losses from prior years to offset future profits, and therefore, lower future income taxes.

Answer 2

Explanation:

A loss carryforward refers to an accounting technique that applies the current year's net operating loss (NOL) to future years' net income to reduce tax liability. ... This results in lower taxable income in positive NOI years, reducing the amount the company owes the government in taxes.