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When a company's interest payment Blank______, the company's tax bill Blank______.
increases; increases
stays the same; increases
increases; decreases
decreases; decreases
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- Which of the following is correct? Select one: a. Unearned revenues are considered increases to stockholders' equity. b. Working capital is measured as current liabilities minus current assets. C. Unearned revenues will eventually become revenue earned. d. Working capital increases when a company pays the principal on a long-term note.Why 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 statementsA company’s ability to earn more on borrowed money than the associated interest cost so that net income increases is called: A. Interest B. A debenture C. Financial leverage D. Covenants
- Which of the following statements is/are true? O In the case of flat-rate write-offs on receivables, the sales tax must also be corrected. All deposits are income effective. O If a company's profit is to be reported as high, administrative costs are taken into account when determining the production costs. O Compared to straight-line depreciation, declining-balance depreciation means that profits tend to be higher in the future.How does the annual rate of return differ from other methods? It has more complex calculations. It uses the amounts a company reports on its tax return. It takes into account the time value of money. It does not focus on cash flows.Why do companies accelerate depreciation on their tax return but often use slower depreciation rates on their financial statements? a. to avoid taxes b. to postpone taxes c. to improve earnings d. to improve long term cashflow
- Vhich of the following statements is true? Multiple Cheice If revenues are less than expenses, the compeny has a net loss and retained esmingn fals If revenues are greater than expenses, the company hes net income and contributed capital rises If revenues are less than expenses, the compeny hes a net loss and contributed capital rises to balance off the loss. If revenues are greater than expenses, the company has net income and retained earnings fells. Prey 12 si E1ourses irst exar Time lef Profitability refers to Select one: O a. Earnings after interest and tax O b, Earnings before interest and tax O C. Sales of products and services O d. None of the options O e. Cost of products and services NexMatch the items
- Please answer with reason for all why the option is correct and why the other options are incorrect................ 1. Accounting provides information on A. Cost and income for managers B. Company's tax liability for a particular year c. Financial conditions of an institutions D. All of the above.............. 2. The long term assets that have no physical existence but are rights that have value is known as A.Current assets B.Fixed assets C.Intangible assets D.Investments............. 3.The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as A.Current assets B.Fixed assets c.Intangible assets D.InvestmentWhat does an increase in the allowance for receivables result in? A A decrease in current liabilities B An increase in net profit C An increase in working capital D A decrease in working capitaWhich of the following statement is correct? Select one: O a. Return on assets is the ratio of net income after interest expense to total assets O b. All options are correct statement C. Average collection period is the average number of times it takes for the company's customers to pay their bills o d. Increase in the debt ratio indicate more reliance on debt as a source of financing
