Answer me Why is economic substance doctrine crucial in taxaccounting?a) It only applies to non-profit organizationsb) It prevents artificial transactions designed purely fortax avoidancec) It deals with routine transactionsd) It focuses on legal form only

Explanation of Economic Substance Doctrine: The economic substance doctrine is a fundamental tax…

Answered: Why is economic substance doctrine…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10MC

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Describe how monies received by an organization functioning as an agent, trustee, or intermediary, rather than as a donor or donee, are accounted for. What may be the rationale for the discrepancies?
Which of the following is not a criterion that must be met for an item to be classified as a liability? A certain cash payment will occur in the future. A sacrifice will require the entity’s assets or services. There is a probable future sacrifice. There is a present obligation that results from a past transaction.
Help! True or false In case of conflict between the by-laws and the corporation code, the code shall prevail. (Explain why)
The communications between CPAs and their clientse are privileged underfederal law. True or False?
1) Which of the following is not true? A) A not-for-profit entity operates for purposes other than to provide goods or services at a profit. B) A not-for-profit entity may be governmental or non-governmental. C) A not-for-profit entity may possess ownership interests like a corporation. D) A not-for-profit entity receives resources from resource providers who do not expect commensurate or proportionate pecuniary return.
Under PFRS 15, in which of the following instances will the revenue from contracts with customers be recognized at a point in time instead of over time? Group of answer choices When the entity’s performance creates or enhances an asset that the customer controls as the asset is created. When the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs. When the entity has transferred physical possession and legal title to the asset to the customer When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.
Do you think the new revenue recognition standard introduced by the FASB-IASB can reduce the likelihood of similar fraud cases caused by improper revenue recognition?
Under what circumstances can a CPA be paid on a commission basis? Why do you think the regulation impose these restrictions?
What was viewed as a major criticism of GAAP as it relates to revenue recognition?
Entity A receives land from the government conditioned that the land will only be used in Entity A’s primary business activities and should never be sold. If in case, Entity A decides not to use the land in its primary business activities, it shall return the land to the government. Which of the following standards is least likely to be relevant in accounting for the land? a. PAS 2 PAS 16 PAS 20 All of these are relevant
Financial Accounting

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Why is economic substance doctrine crucial in tax accounting? a) It only applies to non-profit organizations b) It prevents artificial transactions designed purely for tax avoidance c) It deals with routine transactions d) It focuses on legal form only