hy do companies choose to accelerate depreciation on their tax return and not on their income statement?   a. to avoid paying taxes   b. to postpone paying taxes   c. to match their GAAP financial statements

Q: Discuss the difference between the straight-line method of depreciation and the accelerated methods.…

A: The key difference between straight-line method and the accelerated method is that, under…

Q: In which situation does the tax depreciation allow the firms to defer paying income taxes?

A: Deferment of income tax liability is also called as Deferred Tax Liability. It means tax liability…

Q: Which of the following statements accurately describes the impact of accounting for bad debts on…

A: This question pertains to the impact of accounting for bad debts on taxes. Bad debts occur when a…

Q: Carry-forward tax losses create: a. A deductible temporary difference and therefore a deferred tax…

A: Tax loss carryovers refer to tax losses that a company incurs in a tax year that it can't use to…

Q: How could failing to collect sales tax result in a larger tax liability for a business than failing…

A: Taxable amount is the measurement of the amount of tax that needs to be paid by an individual or a…

Q: Which of the following statements is false? Multiple Choice O The value of an enterprise should not…

A: d. Cash flow should be calculated on an after-tax basis:Explanation: This statement is True. Cash…

Q: Which of the following statements are true? Select one or more: a. MACRS must be used for book…

A: MACRS In the United States, MACRS (Modified Accelerated Cost Recovery System) is a form of…

Q: If a company incorrectly classified an item of capital expenditure as revenue expenditure, what…

A: Capital expenditures: The expenditures that are incurred to increase the life or productivity of…

Q: What are bad debts?

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

Q: Does the management of long term assets benefit the business in anyway? Are there tax benefits as…

A: Assets  is a resource which has economic value and gives benefit to the company directly and…

Q: It is legal and ethical to use one method of deprecia method on the company's financial statements.

A: True, it is legal and ethical to use one method of depreciation for taxes and another method on the…

Q: The accounting net income of a company are not necessarily the same amount as the net income for tax…

A: The accounting net income of a company are not necessarily the same amount aa the net income for tax…

Q: Which of the following transactions would result in an increase in capital employed? A. Paying a…

A: Capital Employed means amount of capital being invested in the business. This is also known as…

Q: When a company pays taxes that were previously recorded as a deferred tax liability, the temporary…

A: The objective of the question is to understand the impact on the temporary difference when a company…

Q: Which of the following statements about RRSP is false? ○ 1) The income in an RRSP accumulates at the…

A: Under Registered Retirement Savings Plan (RRSP), money placed in an account grows tax-free until…

Q: What are the different ways to estimate bad debt? How does this affect net income? What does…

A: The company makes sales on cash and sales on account as well. The company generally makes sales on…

Q: 7 How should deferred taxes be presented on the balance sheet? As current components of…

A: Deferred tax arises whenever there is a difference between the carrying amount of the…

Q: 5) How should companies appropriately account for the tax benefit due to a loss carryforward? ( O…

A: When a company suffers net operating loss in the current year, it can set off this loss against the…

Q: Please provide Solutions

A: Demand-side economics emphasizes the importance of consumer spending and aggregate demand as the…

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: Which of the following is true

A: The correct answer is 2. Investments in stocks of other companies accounted for using the equity…

Q: Given correct answer

A: Demand-side economists criticized the income taxation of capital gains because: a. it discriminated…

Q: What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: is the temporary differrence of depreciation between financial accounting and taxation puposes…

A: In accounting, a temporary difference is a difference between an asset or liability's carrying…

Q: The after tax cash flow requires more computation than the before tax cash flow evaluation? True…

A: The objective of the question is to determine whether the computation of after-tax cash flow is more…

Q: Select all that are true with respect to depreciation. Depreciation is a cash flow outflow at the…

A: Form 1040 Schedule 1 is used to report certain types of income that are not listed on the main 1040…

Q: What is Human Capital? A. Part of the country's current output and imports is not consumed or…

A: The objective of the question is to identify the correct definition of Human Capital from the given…

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

A:

Q: The IRS requires companies that use LIFO for financial statement reporting to also use LIFO to…

A: Why do you think the IRS wants companies to be consistent with the cost-flow assumption they use?…

Q: is less Tax on Profit on Sale of Asset and less Operating Costs (revenue and expenses) or (other…

A: Capital Budgeting helps the company to check the viability of the project. It will help the company…

Q: when multiplying companys tax rate with any firms accounting income , the result is always different…

A: The accounting income of the firm is always computed as per accrual method of accounting. The income…

Q: Deferred income taxes arise because a. corporations often make errors in their tax estimations. b.…

A: Deferred tax arises because of timing difference, i.e, difference between taxable income and…