[item #5] Statement 1 Gross receipts of common carriers derived from theirincoming and outgoing freight shall not be subject to local taxesimposed under R.A. No. 7160.Statement 2 The statutory minimum quarterly amounts on domesticcommon carriers apply when there is no evidence of actual grossreceipts or the actual gross receipts are lower than the requiredstatutory gross receipts.Only Statement 1 is correct c. Both statements are correctOnly Statement 2 is correct d. Neither statement is correctа.b.

Gross Receipts - Gross revenues are the sum of all funds received by the organisation during its…

Statement 1 Gross receipts of common carriers derived from their incoming and outgoing freight shall not be subject to local taxes imposed under R.A. No. 7160. Statement 2 The statutory minimum quarterly amounts on domest common carriers apply when there is no evidence of actual gross receipts or the actual gross receipts are lower than the required

Statement 1 Gross receipts of common carriers derived from their incoming and outgoing freight shall not be subject to local taxes imposed under R.A. No. 7160. Statement 2 The statutory minimum quarterly amounts on domest common carriers apply when there is no evidence of actual gross receipts or the actual gross receipts are lower than the required

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Which of the following statements is incorrect? a) Sales tax collected by a seller is recorded as an increase to sales tax payable. b) Freight in is used in the calculation of net purchases. c) A purchase discount is calculated after subtracting returns and allowances from gross purchases. d) If an item is shipped FOB destination, the seller is responsible for the shipping costs. e) If a seller makes a sale under the terms 2/10, net 30, the sales discount is only available if the buyer pays within the 30 day window. Plz answer fast without plagiarism please i give up vote
A domestic transportation contractor by land is engaged in the transport of passengers, goods and cargoes. If the transportation contractor is not vat registered, what business taxes is he liable? Group of answer choices 12% VAT' on gross receipts from transport of goods on cargoes and 3% common carrier's tax on gross receipts from transport of passengers. 12% value-added tax. 3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3% common carrier's tax on gross receipts from transport of passengers. 3% common carrier's tax.
A domestic transportation contractor by land is engaged in the transport of passengers, goods and cargoes. If the transportation contractor is vat-registered , what business taxes is he liable? Group of answer choices 3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3% common carrier's tax on gross receipts from transport of passengers. 12% value-added tax; 12% VAT on gross receipts· from transport of goods and cargoes and 3% common carrier's tax on gross receipt from transport of passengers. 3% common carrier's tax;
(Identify Temporary Differences and Classification Criteria) The asset-liability approach for recording deferred income taxes is an integral part of generally accepted accounting principles.Instructions(a) Indicate whether each of the following independent situations should be treated as a temporary difference or as a permanent difference, and explain why.(1) Estimated warranty costs (covering a 3-year warranty) are expensed for financial reporting purposes at the time of sale but deducted for income tax purposes when paid.(2) Depreciation for book and income tax purposes differs because of different bases of carrying the related property, which was acquired in a trade-in. The different bases are a result of different rules used for book and tax purposes to compute the basis of property acquired in a trade-in.(3) A company properly uses the equity method to account for its 30% investment in another company. The investee pays dividends that are about 10% of its annual earnings.(4) A…
11. Due to the enactment of the CREATE Law, some provisions therein produced confusions on the part of the taxpayers. To clarify certain matters, the Commissioner of Internal Revenue may issue: A. Revenue Regulations B. Revenue Memorandum Order C. Revenue Memorandum Circular D. Revenue Rulings 12. The government, beginning January 2021, temporarily imposed what is called Safeguard Tax (SG Tax) on certain imported motor vehicles to minimize the influx of foreign-made vehicles to the detriment of local manufacturers. The purpose of the imposition of the SG Tax is based on A. Primary purpose of taxation B. Fiscal purpose C. Regulatory purpose D. Sumptuary purpose 13. Which of the following is not among the powers of the Commissioner? I. Issue Revenue Regulations II. Offer Voluntary Assessment and Payment Programs (VAPP) to taxpayers with delinquent accounts for a specific year or period III. Offer estate tax amnesty to taxpayers IV. Require taxpayers to file Related Party Transaction…
[Second Item] The following statements are correct, except: a. The amount of percentage tax is based on the gross receipts. b. The amount of gross receipts is derived by deducting the cost of services rendered from the service revenue. c. Receivables, although treated as income under the accrual concept, do not form part of gross receipts. d.Percentage tax is generally imposed on services rendered.
30. The “Subsidy from National Government” account is credited when recording a Receipt of NCA Reversion of unused NCA Constructive remittance of customs duties or taxes withheld through TRA a and c
The optional 8% tax under the TRAIN law is based on- * The gross income from business The total gross income The total gross sales or revenue including other income subject to the regular income tax None of the above
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
1. Which of the following statements is incorrect regarding deferred taxes? a. Income tax payable plus or minus the change in deferred income taxes equals total income tax expense. b. The deferred portion of income tax expense is the amount of change in deferred taxes related to the current period. c. In computing income tax expense, a company deducts an increase in a deferred tax liability to income tax payable. d. All of the choices are incorrect. 2. A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this liability is settled in 2022, a future taxable amount will: a. pretax financial income will exceed taxable income in 2022. b. the Company will record a decrease in a deferred tax liability in 2022. c. total income tax expense for 2022 will exceed current tax expense for 2022. d. will not be affected. 3. Assuming a 35% statutory tax rate applies to all years involved, which of the following situations will give rise to reporting a…
P18-2 Temporary and Permanent Differences In the current year, you are calculating a diversified company’s deferred taxes. Based on an analysis of the company’s current taxable income and pretax financial income, you have iden-tified the following items that create differences between the two amounts and that may result in differences between the company’s future taxable income and its future pretax financial income: ________ 1. Percentage depletion deducted for taxes in excess of cost depletion for financial reporting _________2. Warranty costs to be deducted for taxes that were deducted as warranty expense for financial reporting _________3. Gross profit to be recognized for taxes under the completed-contract method that was recognized for financial reporting under the percentage-of-completion method _________4. Officers’ life insurance premium expense deducted for financial reporting _________5. Rent revenue to be recognized for financial reporting that was reported for taxes when…
State how each of the following items is reflected in thefinancial statements.(a) Change from FIFO to LIFO method for inventoryvaluation purposes.(b) Charge for failure to record depreciation in a previousperiod.(c) Litigation won in current year, related to prior period.(d) Change in the realizability of certain receivables.(e) Write-off of receivables.(f) Change from the percentage-of-completion to thecompleted-contract method for reporting net income.