Accounting Standards: For uniformity and transparency, all the companies and business entities are required to maintain their accounting records under the frame work of rules and guidelines set by the Accounting standards setting bodies in consultation with the professional accountants and the business. The Financial Accounting Standards Board (FASB) issues accounting standards called as Generally Accepted Accounting Principles (GAAP) for Country U. On the other hand, the International Accounting Standards Board (IASB) issues accounting standards known as International Financial Reporting Standards (IFRS) for the countries other than Country U.
To identify: Five differences in the format of
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Financial Accounting
- GEM Company has a unit selling price of $790, variable costs per unit of $545, and fixed costs of $285,000. Compute the break-even point in units using the mathematical equation and (b) the unit contribution margin.arrow_forwardArmstrong Industries has an employee earning $7,200 per month. The FICA tax rate for Social Security is 6.2%, and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. The employee has $275 in federal income taxes withheld. The employee also has voluntary deductions for health insurance of $210 and contributes $120 to a retirement plan each month. What is the employee’s net pay for the month of January?arrow_forwardNet income for the year?arrow_forward
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