The entity variable is important because the tax rate thatapplies to taxable income generated by a business oftendepends on the type of entity conducting the business.O TrueFalse

True. The type of business entity does indeed often determine the tax rate that applies to its…

Answered: The entity variable is important…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

In deferred tax company, what is the differences between deferral and liability methods?
A temporary difference which would result in a deferred tax liability is a) installment sale included in accounting income at the time of sale but not in tax incomeb) subscription received in advancec) research cost is recognized as expense in accounting income but not in tax incomed) Dividend revenue on equity investment
How does sources of financing affects tax liability of the business? (Focus only one Source of Financing)
When an entity uses the fair value model, changes in the fair values of investment property are recognized in profit or loss directly in equity recognized in other comprehensive income not recognized
In computing net business income for income tax purposes, which of the following statements is INCORRECT? Question 3Answer a. Income tax paid is not allowed as a business deduction. b. Depreciation is not allowed as a business deduction. c. Capital cost allowance is not allowed as a business deduction. d. An arbitrary reserve is not allowed as a business deduction.
The form of employees compensation ir relevant to tax deductibility of the firm true? or false?
A company uses the equity method to account for an investment for financial reporting purposes. This would result in what type of difference and in what type of deferred income tax? Oa. Type of Difference Permanent Ob. Ives of Difference Permanent Oc. Ives of Difference Temporary Od. Type of Difference Temporary Deferred Tax Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability
For purposes of the accumulated earnings tax, earnings can be accumulated for reasonable needs of the business. List several examples of what is included and several examples of what is not included in the reasonable needs of the business
Why company tax rate is always different from company accounting income?
The profit was first taxed in the corporate level and then taxed on the personal level. This is a. Unjust taxation b. Tiered taxation c. Double taxation d. Purposeful taxation
What are the two particular business structures have evolved in response to liability issues and tax Treatment?
when a C-Corp distributes appreciated assets to its shareholders should recognize in in the corporate return a taxable profit on the appreciation?

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The entity variable is important because the tax rate that applies to taxable income generated by a business often depends on the type of entity conducting the business. O True False