TRUE FALSE
Q: tements for the year ended 30 June 2013: Financial year 2013 2012 $82,000 Trade Receivables $99,000…
A: Bills of Exchange: It is an unconditional document which is written by the drawer /seller on Drawee/…
Q: Investment required in equipment. Annual cash inflows... Salvage value Life of the investment.…
A: A simple rate of return is calculated by deducting the depreciation from the annual cash flow and…
Q: depreciation would be calculated immediately. Greymare’s borrowing rate is 12%. Assume this is a…
A: Assuming depreciation is on straight line basis. Each year depreciation would be (83000/8) $10375 If…
Q: Meta Ltd purchased a new equipment costing £100,000. Its expected useful life is 5 years, at which…
A: Introduction: Depreciation is a cost, which means it appears as a line item on your income statement…
Q: What can be said about a firm whose owners’ equity is a negative amount? How could such a situation…
A: Owner's equity is largely the owner's privileges to the assets of the business. It is the amount…
Q: Huron Corporation generated total sales of $10,000,000 during the year with 80% representing credit…
A: The allowance for doubtful accounts is the contra assets account which is maintained to record…
Q: The Income Statement for the year 2021 of Mira Co. contains the following information: Revenue…
A: Stockholder equity statement is the one where net income and additional capital introduced are added…
Q: Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was…
A: Research and Development cost- The costs incurred in conducting experiments and producing new,…
Q: Auto sales at Carmen's Chevrolet are shown below. Using a 3-week moving average, what is the…
A: Working:
Q: Auto sales at Carmen's Chevrolet are shown below. Using a 3-week moving average, what is the…
A: working:
Q: The following information relates to a company Hoar 0 0.30 0.318 0.339 Camings per share (5)…
A: Dividend Payout Ratio = Dividend per share / Earnings per share The screenshot of the excel along…
Q: The following information relates to Gatsby, Inc. as of December 31 of the current year. The company…
A: * As per Bartleby policy, if multiple questions are asked then answer first three only.
Q: The remaining undepreciated capital investment in year t is called: Select one: O a BVT O b. P OC B…
A: Note: As per the Policy, we’ll answer the first question at a time, since the first question seems…
Q: A new merchandising business, Dazzle Corporation started its operations last January 1, 2020.…
A: Adjusting entries are those journal entries which are passed at the end of accounting period in…
Q: Which does not belong to the group? Titling costs Survey costs Architectural fees Assessment…
A: There are many types of costs and fees which are incurred when an asset is purchased or amount is…
Q: GABRIANA PHARMA To our hardworking medical representatives: I am glad to inform you of our new…
A: Fixed cost refers to those which which remains same i.e. it doesn't changes with the changing level…
Q: A construction company wants to build a 50 housing unit apartment complex and rent them. It is…
A: Annual Rent per housing unit=Total cost per housing unit+Margin
Q: a. Bristol, who is single, has AMTI of $608,600. Her AMT exemption is $ X. b. Marley and Naila are…
A: AMT exemption amounts for 2021 (for taxes due in April 2022 or in October 2022 with an extension)…
Q: On November 30, the company's finished-goods inventory, which is evaluated using the first-in,…
A: Work in progress Opening Balance of raw material and purchased Parts = $6,68,000 In the month of…
Q: On June 1, 20Y2, He
A:
Q: Prepare an amortization schedule for a three-year loan of $102,000. The interest rate is 11 percent…
A: Interest payment is the price paid on the amount of loan. Principal payment is the amount of loan…
Q: Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of…
A: Debt ratio= total debt/Total asset*100 =32500000/40625000 *100 = 80%
Q: Benny is supported by the people listed below. 19-year-old child 15-year-old child 67-year-old…
A: The question is related to taxation. The credit amount is up to $3600 in 2021 (previously it was…
Q: An insurance company is offering a new policy to its customers. Typically, the policy is bought by a…
A: Future Value: The worth of an investment or asset on a certain date in the future is referred to as…
Q: Statement of stockholders' equity Noric Cruises Inc. began the month of October with the following…
A: The statement of shareholders' equity is one of the financial statements of the business, which…
Q: What is meant by net income and net loss?
A: When the company has more amount of revenue it would have positive income whereas when company has…
Q: . How much is the net income for distribution to partners? A. P 2,750,000 B. P 2,900,000 C. P…
A: 7. Net Income for Distribution to partners D. P 5,750,000 is correct option. Explanation: Gross…
Q: Exercise 8. Lola Company's accounting year ends on December 31, 2016. On December 1, Lola signs a…
A: Adjusting journal entry: At year-end when the company finalizes its accounts, any unrecognized…
Q: Considering whether to use historical cost or fair value relates to which of the following…
A: The procedures applied and principles followed by the company to prepare its financial statements…
Q: Question 39 If the selling price per unit is $10, the unit contribution margin is $5, and total…
A: Lets understand the basics. Break even point is a point at which no profit/no loss condition arise.…
Q: Beth Campbell works for ZoneXX Inc. in York, Ontario. Beth is going to receive a $6,000.00…
A: Contribution towards the Canadian Pension plan is equal to the contribution rate of the year…
Q: Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the…
A: Lets understand the basics. For calculating taxable income, we need to use below formula. Taxable…
Q: Harvest Inc. produces and sells a single product. The selling price of the product is $200.00 per…
A: The contribution margin is a metric that shows how much a company's net sales contribute to fixed…
Q: a Income statement for the year ended April 30. b. Statement of changes in equity for the year ended…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: A plant operating at 100% capacity (1000 kg product per year) has an annual net profit of $40,000…
A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…
Q: Use the following information for questions 1 to 7. The Income Statement for the year 2021 of Mira…
A: The entry to close expense account includes Debit to income summary and credit all expenses…
Q: Beginning palances: Assets Liabilities Ending Balances Assets Liabilities During the year: -Net…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.
Q: Choose which option (Option 1- Option 3) was used to calculate the contract cost for any number of…
A: Contract costing is a part of job costing. It refers to the determination of costs related to a…
Q: On January 1, Lumia Company’s liabilities are $70,000 and its equity is $50,000. On January 3, Lumia…
A: The transactions of the business effects two or more accounts of the business. The accounting…
Q: Eplain why a contract existed between your mother and Jewel on June 7, 2022?
A:
Q: explain the different organization cultures and sub cultures
A: Culture has the ability to define a group of people. That includes things like language, cuisine,…
Q: Explain the process of depreciation.
A: The depreciation is charged on fixed assets by the business to expense the value of fixed assets…
Q: A manufacturing company stores a major component used in its factory. The receipts and issues for…
A: Inventory - Inventory is the goods that a company keeps in order to generate revenue. This includes…
Q: The Beacon Hills High School entered into a contract with Beacon Printing Services which stipulates…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: XYZ Ltd. has the following costs for 1,000 units: Total Cost Direct materials € 1.500 Direct labour…
A: Direct material is the material which is directly used for the production of the goods.
Q: What is meant by Owners’ equity?
A: The balance sheet is the financial statement of the business which represents the financial position…
Q: The Razooks Company, which manufactures office equipment, is ready to introduce a new line of…
A: Variable manufacturing cost 180 Applied fixed manufacturing cost 60 Variable selling and…
Q: Xavier Chemicals processes resin from fir trees into three products: printing inks, varnishes, and…
A: Lets understand the basics. When in the single process, different type of product get produce then…
Q: You are planning the audit of Bluechip Ltd, a company with investments in listed securities that you…
A: Answer (C) 14.2 the case of materiality is The level that that auditor can choose on the basis…
Q: Morris Lann works for Talbert Electronics. He is a shared employee; he works in the manufacturing…
A: For Calculating the Hundredth Hours system first to calculate the total minutes worked with which is…
With leases the airline doesn’t own the aircraft and cannot take advantage of tax credits and tax write offs.
TRUE
FALSE
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- (a) In your own words, explain how do we account for service costs included within a contract to lease an asset? (b) Briefly explain how a company calculates its current liability 'income tax payable'? (c) In your own words, explain why a temporary difference relating to employee benefits obligations for long-service leave creates a deferred tax asset (d) In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences relating to the acquisition of qualifying assets? Contrast this with the treatment for assets that are not qualifying assetsIf the assumption that companies pay no tax in Modigliani & Miller Proposition is relaxed, while the other two assumptions still hold, how will the value of a company be affected? Which is not an advantage of leasing from a lessee's viewpoint? A.The asset can be acquired without having to make a substantial down payment. B. Leased assets are never reported on the balance sheet. C. The risk of obsolescence may be reduced. D. A lease may provide 100% financing.
- Why might leasing be advantageous for both the lessor and the lessee? Group of answer choices If the lessor's tax rates are higher, the lessor can share some of its tax benefits with the lessee in the form of higher lease payments. The lessor can share some of the benefits related to lower transaction costs with the lessee in the form of lower lease payments. More than one of the other statements is correct. If the cost of capital is lower for the lessee, then the lessee can share some of the lower cost of capital with the lessor in the form of higher lease payments. None of the other statements is correct.2. When the franchisor supplies equipments and inventories without a reasonable profit, part of the initial franchise fee, sufficient to cover the estimated costs in excess of that price is * A.not recognized. B.deferred and recognized over the period the goods are likely to be sold to the franchisee C.deferred and recognized when finally sold to the franchisee D. recognized immediatelyThe lessor would most likely prefer a ________ or ________ lease to an operating lease. Nonoperating lease treatment would permit a financial service company lessor to remove heavy machinery and equipment, jet airlines, oceangoing vessels, and such from its balance sheet and replace it with the ________, a financial asset compatible with the nature of its business. In addition, the nonoperating lease results in the recognition of ________, rather than ________ revenue. Group of answer choices standalone; operating; fair value of the leased asset; interest income; rent direct financing; operating; net investment in the lease; financing income; unearned standalone price; sales-type; fair value of the leased asset; financing income; unearned direct financing; sales-type; net investment in the lease; interest income; rent
- Identify the incorrect statement concerning lease finance. A. Companies that are short of finance can use leasing as a source of assets B. Lease payments attract tax relief C. Interest payments attract tax relief D. Finance leasing allows companies to avoid the problem of obsolescence in cases where assets are subject to rapid technological change E. Empirical research has shown that many companies use an incorrect method when evaluating lease financeWhy do U.S. companies keep using LIFO while IFRS prohibits it? a. LIFO provides a more realistic income statement since the most recent items purchased are what is measured on the income statement. b. LIFO assigns less weight to the balance sheet. c. The taxing authority in the U.S. has conformity provisions.A company reduces a deferred tax asset by a valuation allowance if it is probable that it will not realize some portion of the deferred tax asset true or false
- How is a business activity distinguished from an investment activity? why is this distinction important for the purpose of calculating federal income taxes? What types of losses may potentially be characterized as passive losses?Which of the following statements is false? A For tax purposes, companies can use the MACRS depreciation method. B When you change a depreciation estimate, such as salvage value, you need to make an adjustment to retained earnings. C If the expected future cash flow is less than the carrying amount, the asset is considered impaired. D If an impairment loss is recorded, depreciation must be recalculated since the book value changed. The answer A is wrongWhich of the following is nota reason why some companies lease rather than buy? A. Leasing may allow you to borrow with little or no down payment. B. Leasing can improve the balance sheet by reducing long-term debt. C. Leasing can lower income taxes. D. Leasing transfers the title to the lessee at the beginning of the lease.