Which one of the following is a soft benefit? Depreciation tax shield Reduction in the number of items spoiled during processing Enhanced reputation of the company Decreased time to receive and process customers’ payments

Which one of the following is a soft benefit? Depreciation tax shield Reduction in the number of items spoiled during processing Enhanced reputation of the company Decreased time to receive and process customers’ payments

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 18MC: What would be a reason a company would want to overstate income? A. to help nudge its stock price...

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Similar questions

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.
What would be a reason a company would want to overstate income? A. to help nudge its stock price higher B. to lower its tax bill C. to show a decrease in overall profits D. none of the above
Why do you think companies use revenue recognition as a primary means for inflating profits?
Companies that use OSD can deduct the cost of sales or the cost of services. Is it true or false?
Companies have found that offering discounts to customers in return for early payment can be counterproductive in terms of the resulting adverse effect on profitability. This is when the reduction in profitability outweighs any marginal improvements gained from the benefit of a reduction in the working capital requirement. Required: Given the above critically discuss the alternative measures to offering discounts to customers that could prove more effective in reducing the working capital requirement for a company with only minimal potential reductions in profitability.
True or false: the new revenue recognition standard is aimed at a few industries and will not affect most companies
Managers have some flexibility in setting the estimated useful lives of depreciable assets. Explain how this could allow managers to manipulate earnings. Would depreciation be considered a variable cost or a fixed cost? Explain how a change in sales price, variable cost, or fixed cost affects breakeven in units and breakeven in sales.
Companies have found that offering discounts to customers in return for early payment can be counterproductive in terms of the resulting adverse effect on profitability. This is when the reduction in profitability outweighs any marginal improvements gained from the benefit of a reduction in the working capital requirement. Required: Critically evaluate the methods that can be adopted to manage and achieve the efficient control of inventories and gain the resulting benefits for improving cashflow and ultimately profit in a business.
Please solve this question in detail and please provide atleast 1 refrence Question : A company believes that it is subject to scrutiny by particular interest groups such as employee unions because it is earning excessive profits. Do you think that this might influence whether the company prefers to recognise revenue over time for its construction contracts, or whether it would prefer to defer profit recognition until the completion of the project? Using this case, discuss whether it be appropriate to recognise revenue at completion of production rather than at the point of sale? (word limit 500)
A company should immediately recognize: A) any gain when it constructs a piece of equipment at a cost savings. B) any gain when it makes a bargain purchase. C) any gain when a company receives no cash for an asset received in an exchange. D) any loss when it ignorantly pays too much for an asset originally.
Why do companies don't distribute all their profit
True and fair profit of any business can only be determined after charging depreciation because it is an expense which is important for taxation purposes. But many analysts think that depreciation is not that much necessary for the business because it reduces profit while some businesses think that it is necessary because of tax benefits. What do you think? Isdepreciation an important treatment for every business? How will you compare the importance of depreciation for a manufacturing organization and for a Service organization?Which method is suitable for these organizations- straight line method OR written down value method? Explain.