ompany can not rely on net income as a valid measure to pay fixed charges

Q: How is sales tax recorded? Is it considered an expense of a business? Why or why not?

A: Most states levy sales taxes on goods and services. Those states differ on what is taxed and for how…

Q: Which statement is incorrect? * The FUNCTIONAL Income Statement classifies expenses into cost of…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: In what way may the use of percentage depletion violatesound accounting theory?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: Are there differences between financial reporting standards and income tax rules thatwill not cause…

A: Normally, business follow GAAP in preparing their financial statements in order to arrive at their…

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

A: Definition: Normal balance refers to the excess of the amount on one side, over the amount on the…

Q: How does a company report deferred gross profit resulting from the use of the installment sales…

A: Definition:   Installment sales method: Under the installment sales, the revenue and costs are…

Q: What are bad debts?

A: Hi Student Since there are multiple questions, we will answer only first question. If you want…

Q: Which of the following is not a typical example of an accrued expense? Wages Taxes Depreciation…

A: Accrued expenses are considered as current liabilities in books of accounts. These are the…

Q: Comprehensive income does not affect net income or retained earnings. True False

A: Comprehensive income means any change in the net assets of the business during the particular period…

Q: Leftover hypothesis of profit is relevant just when:    a. The expense of held income lower than…

A: The leftover hypothesis of Profit means remaining profit i.e. profit left over after paying all the…

Q: Property and income taxes are more popular than sales taxes and user charges? True or False

A: Taxes are the fees charged by the government to collect revenue and run the country. The money…

Q: What are three limitations of the income statement thatoften lead to misconceptions?

A:

Q: Which of the following statements is false? A.Prepaid expenses are fully deductible when paid for…

A: When the Inventory is a reduction from gross receipts. This means that inventory will decrease in…

Q: Under what circumstances should sellers consider the time value of money when recognizing revenue?

A:

Q: If a company failed to record an accrued income, what would be the effects?

A: Accrued income is that income which is being earned by the business for the particular period of…

Q: What is the impact of deferred annuities in consideration to business matter?

A: The legal contract between any entity and an insurance company is a deferred annuity contract. The…

Q: The following statements are correct, except: a. The amount of percentage tax is based on the gross…

A: Tax is a charge which is paid by the taxpayer. The percentage tax is the tax which is calculated on…

Q: explain what a growing balance in the deffered income tax liability is likely to indicate about a…

A: This question deals with the IFRS 12 "Deferred tax" As per IFRS,  When there is temporary taxable…

Q: Income taxes payable is an example of an accrued liability. a. True b. False

A: The liabilities are the amount due to paid by the business in future period. The current liabilities…

Q: How are deferred taxes calculated? What determines if the company has a deferred asset or a deferred…

A: Deferred tax is a fictitious asset or liability that reflects company income taxation on a premise…

Q: net income before tax that the company would disclose on an ement is: absorption-costing inc

A: Absorption costing is a cost accounting method to find out the cost of a product. It takes into…

Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…

A:

Q: Which of the following does not belong to the group?   Broker's commission Transfer tax…

A: The term Cost of disposal refers to the additional expense that are incurred or to be incurred for…

Q: How does EVA differ from accounting profit?

A: Introduction: Economic value added is the sum of net earnings over capital costs. EVA corresponds to…

Q: TRUE OR FALSE? 1st statement: MCIT will be imposed if the company's business operation resulted in…

A:

Q: This revenue taxes deducted from an employee's gross salary is a cost to the company. is it true or…

A: The expenses are the costs incurred to earn the revenue for the business and liabilities are the…

Q: Some accountants believe that deferred taxes should not be recognized for certain temporary…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which if the following is not an inclusion in gross income?

A: Gross income is an income from all sources including returns , discounts and…

Q: Interest revenue need not be added to the gross income to compute for the total income.

A: Gross income and net income are two concepts associated with the accounting that helps to identify…

Q: Why does Non-GAAP earnings are controversial?

A: Definition: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: Estimated losses on uncollectible taxes receivable should be accounted for as an allowance for…

A:

Q: Which of the following is usually not an accrued liability? Select one: a. Notes payable b. Taxes…

A: Accrued liability refers to the amount of liability that represents the expenses for the current…

Q: Which of the following would not affect a company's net income?

A: Note as more than one question is posted i am providing you answer for question 1. Net income is…

Q: The following statements are correct, except: a. The amount of percentage tax is based on the gross…

A: Gross receipts are defined as all income, regardless of form, collected or accumulated (in…

Q: How does accrued but uncollected revenue affect the bal-ance sheet?

A: Accrued revenue: It can be defined as the revenue that has already been earned by the business but…

Q: When a business calculates taxable income from gross income, which ofthe following is true? a.…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: Why company tax rate is always different from company accounting income?

A: There is no possible comparison between the corporate tax rate and accounting income directly. The…

Q: What will the company record for bad debt expense?

A:

Q: 1. Which of the following transactions does affect profits? to write off accounts payable as…

A: Profit is affected when the expenses is booked in the profit & loss account.   Lifo - Last in…

Q: Which of the following item should not appear in the Income Statement (Profit and Loss Account):…

A: Income statement also known as the profit and loss account shows the expenditures and income of the…

Q: 5. Identify the following items as creating a temporary difference, permanent difference, or no…

A: Permanent difference is the difference between the tax and the book value of revenue or expense…

Q: Which of the following is true about Accumulated Other Comprehensive Income (AOCI)? (check all that…

A: AOCI: It consists of the items which do not form part of the incomes or expenses and those not…