QUESTION 16 When customers use national credit cards to make purchases from a retailer, which of the following is not true? a. The retailer absorbs any losses from accounts the credit card company cannot collect from customers. b. The retailer receives cash from the credit card company within a day or two. Oc. The credit card issuer is responsible for maintaining customer accounts. Od. The retailer receives less cash than the amount of revenue it recognizes.

Q: Why would it

A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: T Accounts    1. Cash Account Particular Debit Particular Credit         To capital A/c…

Q: Question 25

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What is Glass-Steagall Act?

A: Glass-Steagall Act splits up the investment and commercial banking segments of an investment bank.

Q: minimum required rate of return

A: Residual income is actually the excess of net income above the minimum required return. Here, the…

Q: What does PFMA stand for?

A: Solution- PFMS [Public Financial Management System] PFMS stands for Public financial Management…

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: What is the answer to part b? Is it -1245? Is the sign negative or positive?

A: The inventory valuation includes two methods named as FIFO (First in First Out) and LIFO (Last in…

Q: 1. Sona Manufacturing provided the following information for last month: 3. Sales Variable Costs…

A: There are two type of costs that are being incurred in business. One is fixed costs, which will not…

Q: How does the change in the PBO occur?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of…

Q: is part b answered in this?

A: Ledger posting. : When any transaction is made journal entry is passed, after that those entries are…

Q: What happened to questions 4 and 5?

A: 4.Margin of safety in revenue = Actual sales – Break-even sales= (35,000*5.90) – 88,382= 206,500 –…

Q: What is this question answer?

A: Net realizable value = Estimated Selling Price -  Cost of Completion and Disposal where, Cost of…

Q: When is independence required?

A:

Q: 17. What are the key features of ERISA?

A: The Employee Retirement Income Security Act of 1974 (ERISA) is a federal statute that provides basic…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.