Which of the following formulas correctly shows how taxable income is calculated? O gross income less tax credits the sum of earned income and investment income O total income less tax deductions the sum of income from all sources

Q: How to draw a npv profile in excel

A: Net Present Value (NPV) is the technique used to discount the cash flows generated over the period…

Q: Describe about the LIFO and FIFO method.

A:

Q: briefly explain what is meant by breakven points

A: Cost accounting is the part of accounting that helps in determining the total cost of production. It…

Q: Describe the functions and powers of ASIC

A: Australian securities and investment commission is a commission made in 1998 of Australian…

Q: Explain put–call parity relationship

A: Put-Call parity is the concept that defines the relationship between price of European call option…

Q: Define covered call option

A: Covered call option It alludes to financial market exchanges where the financial specialist who…

Q: Define NRV method.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: 1. Use Excel to compute the NPV and IRR of the two plans. Which plan, if any, should the company…

A: Net Present Value: It is the current worth of the project having the initial cost and annual…

Q: Define TED spread

A: The term TED spread stands for Treasury Euro Dollar Spread. It can be defined as the credit…

Q: Define embedded options

A: Embedded options are considered to be very much beneficial for both individuals as investors &…

Q: Describe the features of JIT.

A:

Q: Define call protection

A: A financial instrument that does not affect the ownership of the common shareholders or management…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.