Multiple Choice Question : General accounting When should the accounting cycle bemodified for specialized industries?a) When standard periods don't matchbusiness operationsb) Only during tax seasonc) Never under any circumstancesd) For all small businesses

Option a: This option is correct because the accounting cycle represents the financial performance…

Answered: When should the accounting cycle be…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 27MCQ

See similar textbooks

Similar questions

Is the tax expense of a firm in its financial statements same as the company tax rate times of a firm’s accounting income? if not highlight the reasons for differences.
Please Solve In 15mins I will Thumbs-up
iv Why there is a difference among the company tax rate times with the firm’s accounting income? highlighting the reasons for differences.
Why company tax rate is always different from company accounting income?
Based on a change in economic conditions, Company X has determined that its allowance for doubtful accounts needs to increase. What type of accounting change is this? accounting policy accounting error accounting estimate
a. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business? c. Compare general and administrative expenses to similar companies. Are they reasonable? d. What is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?
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 statements
Question (3) Is entertainment expense likely to be reported differently on the business tax return than on the business financial statements? O Yes, entertainment expense is typically higher on the tax return. O Yes, entertainment expense is typically lower on the tax return. O No, entertainment expense is typically the same on both the tax return and the financial statements. Bookmark for review
a. What is your company’s primary revenue, secondary revenue, and gains? b. What is your company’s primary expenses, secondary expenses, financial activity generated expenses, and losses? c. What is the revenue trend? Does the 10-K or 10-Q discuss primary revenues, as well as other revenue types? d. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends?
ACCOUNTING FOR INCOME TAXPART A1) Explain the difference between the ‘tax payable’ and ‘tax effect’ methods of accounting for income tax2) Discuss the ‘balance sheet’ approach to accounting for income tax required bty Accounting Standard AASB112 Income Taxes, comparing it to the ‘income statement’ approach adopted under the previous accounting standard.3) Do you think small companies should have to adopt tax effect accounting as required by Accounting Standard AASB 112 Income Taxes? Provide reasons.PART BCASE STUDYBarnacle Ltd commenced operation on 1 July 2009 and prepared its first financial statements for the year ended 30 June 2010. The following information has been provided for the year ended 30 June 2011Profit before tax for the year ended 30 June 2011 was calculated as follows:Gross Profit $ 1380,000Add:Rental Revenue 12,000Less:ExpensesLong Service Leave 10,000Depreciation Plant and Equipment 135,000Salaries and Wages 111,000Warranty Claims 36,000Amortisation of Research and…
Answer both in detail
or A company is considering whether to classify certain expenses as operating expenses non-operating expenses. Discuss the potential impact of this classification on the company's financial statements and key ratios. What factors should the company consider when making this decision? How can the company ensure consistency in its expense classification?

SEE MORE QUESTIONS

Recommended textbooks for you

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

SEE MORE TEXTBOOKS

When should the accounting cycle be modified for specialized industries? a) When standard periods don't match business operations b) Only during tax season c) Never under any circumstances d) For all small businesses