How can the amounts shown on the- nancial statements be called historical ?cost amounts
Q: period cost shown in statement of financial position Ture or false
A: Period cost refers to the cost related to the passage of time. Since it is associated with the…
Q: Classify the Costs for Financial Statements?
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Period cost shown in statement of financial position. True or false
A: The period costs are the costs that are incurred in the period they are expensed.
Q: Which of statements about the contribution income statement is correct? Group of answer choices
A: A contribution income statement is defined as the statement in which all the variable costs and all…
Q: What is the relationship between total carrying cost and totalordering cost at the EOQ?
A: It indicates an inverse relationship between the cost of ordering and the cost of holding at…
Q: inventories at the lower of cost and net realizable value? Added to cost
A: "Since you have asked multiple question we will solve the first question for you. If you want any…
Q: An example of an expense classifi cation by function is: C . cost of goods sold.
A: Expenses are either classified by nature or by function.
Q: What is the standard cost income statement? Give an example?
A: Meaning of Standard cost income statement:A standard cost is the estimated cost of production based…
Q: What are the differences in the accounting forinventoriable versus period costs?
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: Describe why base measurement on historical costs?
A: Definition: Historical cost: Historical cost explains that assets and liabilities appear in the…
Q: rk-in-prc
A: Cost of goods manufactured is as under:- Particular Amount Amount Direct material…
Q: Explain why product costs are capitalized but period costs are expensed in the current accounting…
A: Product Cost The cost of the goods refers to a price paid to manufacture a product. It requires…
Q: What is the purpose of Classifying Costs for Financial Statement?
A: Cost Classifications helps the management in analysing the overall effect on the assets and…
Q: bject:cost account
A: Cost of Production report states the cost per Equivalent unit produced and transferred and cost of…
Q: Describe the Unit-Profit or Unit-Cost Calculation?
A: A unit cost is a net expense a firm has incurred to manufacture, store, and sell one unit of a…
Q: Why base measurement on historical costs?
A: Historical cost: Historical cost explains that assets and liabilities appear in the financial…
Q: a) Why are neutral expenes eliminated and imputed cost added to derivee cost from expenses
A: Deriving the cost from expenses is necessary to ascertain the exact cost incurred and to…
Q: What is life-cycle and/or full-cost accounting? IS THERE A DIFFERENCE?
A: In this question, we have to tell about life-cycle costing and full cost accounting, whether these…
Q: Prior (Past) service cost is expensed immediately using which of the following? a. U.S. GAAP. b.…
A: Prior or past service cost refers to the changes in the PV of defined benefit obligations due to the…
Q: How is it possible for a cost that is traceable to a segment to become a common cost if thesegment…
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: The cost that is incurred in the process of generating the income will be called as
A: The cost that is incurred in the process of generating the income will be called as expense.
Q: Define historical costs.
A: Historical cost principle: This is an accounting principle which states that the actual cost paid in…
Q: Explain how the accounting definition of an asset is related to the choice between absorption and…
A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting…
Q: Determine the reorder point. order point units Determine the economic order quantity.
A: We know that, Reorder point = average daily usage*lead time + safety stock So here, reorder point is…
Q: Can you label revenue, loss, total costs, dollars, variable cost, and fixed cost on the provided…
A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…
Q: What is a functional expense statement?
A: The answer is explained as follows:
Q: The terms period cost and product cost are sometimes used to describe certain items in financial…
A: Definition and distinguishing of the terms- a) Product Cost- these are all the direct cost…
Q: A direct cost is one that is a. Variable with respect to the cost object. b. Traceable to the cost…
A: Direct cost: A cost indicates the payment of cash or the obligation to pay the cash in the future…
Q: Describe the accounting and amortization of prior service costs.
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: Describe and compare the cost flow assumptions used to account for inventories.
A:
Q: Define “cost” as applied to the valuation of inventories.
A:
Q: When preparing cost estimates for account analysis purposes, should the costs be extracted from the…
A: Cost estimation is essential for every company to help managers in relevant decision-making. Cost…
Q: Distinguish between costs that are capitalized and costs that are expensed in the period inwhich…
A: A business cost includes all costs such as capitalized cost, the variable cost, direct or indirect…
Q: Period cost is O A. inventoriable cost B. allocated between sold and unsold O C. fully expense in…
A: Solution: Period cost is "Fully expensed in the period incurred". This is because period cost are…
Q: ases? or only in t
A: The explanation is given below ,
Q: (i) A cost that can be traced to a cost object is known as A. A fixed cost B. A variable cost C. A…
A: As posted multiple questions we are answering only first question kindly repost the unanswered…
Q: Costs incurred to earn revenue are referred to as _____
A: Expenditure is the outflow cash or incurred by the business to support the generation of revenue.…
Q: Explain an example of journal entry for the transfer in costs.
A: Transferred in cost: It can be defined as the accumulated costs, incurred in relation to a product…
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- LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively 4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax low, resulting from temporary differences and operating loss carryforwards at the end of the current year 5. The change during the year in a corporations deferred tax liabilities and assets 6. The deferred tax consequences of future taxable amounts 7. The portion of o deferred tax asset for which it is more likely than not that a tax benefit will not be realized 8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively 9. The sum of income tax payable and deferred tax expense (or benefit) 10. The amount of income taxes paid or payable (or refundable) for the current year 11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year 12. The excess of taxable revenues over tax deductible expenses and exemptions for the year 13. Income tax expense divided by income before income taxesThe purpose of Schedule M-1 on the corporate tax return is to: Reconcile accounting (book) income to taxable income. Summarize the dividends received deduction calculation. List the officers of the corporation and their compensation. Calculate the net operating loss deduction.
- Show the solution in good accounting form. Thank you! 1. What amount should be reported as current tax expense for the current year? a. ₱ 1,350,000 b. ₱ 2,250,000 c. ₱ 1,950,000 d. ₱ 1,050,000 2. What amount should be reported as total income tax expense? a. ₱ 2,250,000 b. ₱ 1,050,000 c. ₱ 1,350,000 d. ₱ 1,950,000 3. What amount of income tax payable should be presented at year-end? a. ₱ 1,050,000 b. ₱ 2,250,000 c. ₱ 1,350,000 d. ₱ 1,950,000Question 4Each of the following is determined according to IFRS exceptSelect one: a.taxable income. b.income for book purposes. c.income for financial reporting purposes. d.income before taxes. Question 5An assumption inherent in a company’s IFRS statement of financial position is that companies recover and settle the assets and liabilities atSelect one: a.the amount that is probable where “probable” means a level of likelihood of at least more than 50%. b.their reported amounts c.the present value of future cash flows. d.their net realizable value. Question 6Machinery was acquired at the beginning of the year. Depreciation recorded during the life of the machinery could result in Future Future Taxable Amounts Deductible AmountsSelect one: a.Yes No b.No Yes c.Yes Yes d.No NoCASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 7. Net income for the year is?
- CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 1. Compute the taxable incomeIn a Word document, write a short paragraph on what would have been the net impact on retained earnings in each of these years from the transactions listed in the data set. Ignore any tax effects.The amount of income taxes due to the government for a period of time is rarely the amount reported on the income statement for that period as income tax expense. Instructions a. Explain the objectives of accounting for income taxes in general-purpose financial statements. b. Explain the basic principles that are applied in accounting for income taxes at the date of the financial statements to meet the objectives discussed in (a). c. List the steps in the annual computation of deferred tax liabilities and assets.
- Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: FMV Adjusted Basis Appreciation Cash $ 14,500 $ 14,500 Receivables 18,800 18,800 Building 102,500 51,250 51,250 Land 260,250 86,750 173,500 Total $ 396,050 $ 171,300 $ 224,750 Payables $ 19,100 $ 19,100 Mortgage* 159,000 159,000 Total $ 178,100 $ 178,100 * The mortgage is attached to the building and land. Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was…Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: FMV Adjusted Basis Appreciation Cash $ 14,500 $ 14,500 Receivables 18,800 18,800 Building 102,500 51,250 51,250 Land 260,250 86,750 173,500 Total $ 396,050 $ 171,300 $ 224,750 Payables $ 19,100 $ 19,100 Mortgage* 159,000 159,000 Total $ 178,100 $ 178,100 * The mortgage is attached to the building and land. Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was…The statements of financial position of Nedburg include the following extracts: Statements of financial position as at 30 September 20X2 20X1 $m $m Non-current liabilities Deferred tax 310 140 Current liabilities Taxation 130 160 The tax charge in the statement of profit or loss for the year ended 30 September 20X2 is $270 million. What amount of tax was paid during the year to 30 September 20X2?
