When they are net of taxes, prior period adjustments always increase the value of Retained Earnings O True O False

Q: Unrealized los

A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…

Q: What effect do permanent differences have on deferred income taxes?

A:

Q: Explain very briefly what you understand from income effect and substitution effects of change in…

A: The effect of income tax rates in terms of income effect and substitution effect is explained as…

Q: :-What are two estimates that impact the Amount of reported income significantly c How? When…

A: 1) Income statement is one of the three Financial statement on that stakeholder rely on . For…

Q: What is the effect of a rise in the income tax on interest income? A rise in the income tax on…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Q: computing the cost of debt, a tax adjustment is required t arrive at after-tax cost of debt. Why is…

A: Cost of Equity: It is the rate of return the company pays to the investor for investing in the…

Q: Deferred tax expense or benefit is the net change in DTL and DTA for the period. If the increase in…

A: The deferred tax asset or even the deferred tax liabilities are caused due to the variations in the…

Q: How much in taxes would the target firmhave to pay on any gains it realizes?

A: Corporate taxes are calculated on the gross profits after the expenses have been deducted from the…

Q: profit after taxes will be produced

A: A rise in sales will cause a proportional rise in the variable costs. But, the fixed costs will…

Q: True or False An increase in the capital gains tax rate decreases the total amount of unrealized…

A: capital gains:- A capital gain is an increase in the value of a capital asset that is realized when…

Q: Using the adjusted present value model, under what assumptionsare the MM (no taxes) results correct?

A: The Modigliani and miller approach can be used for the dividend decision. This approach is an…

Q: C) Adjusted gross income is decreased by any tax preference and adjustment items.

A: Minimum tax refers to the separate system that is required by some taxpayers for calculating the…

Q: The Adjusted Present Value approach to valuation uses Interest Tax Savings to account for:     a.…

A: The Adjusted Present Value method, unlike NPV, considers the advantages of taking on debt (such as…

Q: n computing for the comprehensive income, the revaluation surplus will be deducted from the net inco

A: Solution Concept Revaluation surplus The term revaluation surplus means when the fair value of the…

Q: If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is…

A: If the increase in deferred tax asset is Higher than the increase in deferred tax liability, there…

Q: How does an increase in the income tax rate affect the breakeven point?

A: A break-even sale is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Q: hort term capital gains taxes are higher than long term capital gains taxes. How does the different…

A: At the point when you sell a capital resource for more than you paid for it, the outcome is a…

Q: How much is the income tax expense/(benefit) for the third quarter? (NOTE: If your answer is an…

A: Formula: Income tax expense amount = Net income x Tax rate

Q: The tax rate is the ratio between the amount of tax and the amount of income. true Error

A: >Tax rate is the rate of tax that is levied by the regulating authorities.>Income tax rate is…

Q: Income Taxes Payable or refundable + Changes in deferred income taxes = total income tax expense or…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Depreciation is needed only for computing income taxes. True or false?

A:

Q: Deferred tax liabilities should be treated as equity when:A . they are not expected to reverse.B .…

A: Deferred tax liability: Deferred tax liability is a tax that is measured or is outstanding for the…

Q: Which sales tax and tip would be equivalent to the given increase?

A: Particulars Option A Option B Row 1 Row 2 Row 3 Row 1 Row 2 Row 3 Bill Amount 100 100 100 100…

Q: The following are examples of non-adjusting events after the reporting period that would generally…

A: The determination after the reporting period of the amount of profit sharing or bonus payments, is…

Q: Interperiod equity refers to the concept that current-year revenues are sufficient to pay for…

A: Interperiod equity is the concept found in Generally Accepted Accounting Principles.

Q: How much was the profit before finance cost and income tax?

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Q: What is the real return?   Multiple Choice   The after-tax return on assets.   The pre-tax return…

A: Rate of return is the percentage of profit that is earned on an investment.

Q: During a period of inflation, an account balance remains constant. With respect to this account, a…

A: Monetary items refers to those assets and liabilities whose value can be measured and expressed in…

Q: Temporary differences result in future taxable or deductible amounts when the related asset or…

A: Permanent difference refers to those differences that are caused by transactions and events that…

Q: EBIT is equivalent to profits after taxes. true or false?

A: EBIT is the earnings before interest and tax.

Q: Using the adjusted present value model, under what assumptionsare the MM (with corporate taxes)…

A: MM model shows that company’s market value is computed as a PV of company’s future earnings which is…

Q: Which of the following has the greatest effect of reducing tax payable through the acceleration of…

A: Bad Debt refers to the value of those uncollected sum of money or a form of expense which is owned…

Q: Briefly describe the income impact and substitution effect of changes in income tax rates (you do…

A: The question describes the income impact and substitution effect of changes in income tax rates:

Q: What is NOPAT (net operating profit after taxes)?

A: The income generated by a business in the course of normal operations, after deducting the direct…

Q: If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L?

A: Bonus is the amount receive in addition to salary for additional efforts put in by the partner. In…

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: Assuming no changes in other variables, which of the following would decrease ROA? A. A decrease in…

A: As given in the question that the variable cost remains the same, there is no change in this. ROA…

Q: Of the following, the most likely effect of an increase in income tax rates would be to: A)…

A: income tax rate is the percentage of income that is paid to the government.

Q: Valuation allowances reduce deferred tax liabilities to the amount that is more likely than not to…

A: Solution:- A valuation allowance is used for the purpose of offsetting deferred tax asset. The…

Q: When they are net of taxes, prior period adjustments always increase the value of Retained Earnings…

A: The term 'prior period adjustments' described as any revenue or expenditures that occur in the…

Q: What will be the Effect of Interest Rates on the After Tax IRR on Equity?

A: "Financial leverage is a double edged sword". If the company is not managing its financial resources…

Q: ue added, several adjustments are made to after tax operating profit that

A: Economic value added = net operating profit after tax -(capital*WACC)