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Leya [2.2K]
3 years ago
8

Under the conformity rule, companies who use the _____ method for tax reporting, are required by the IRS to also use it in their

financial statements.
Business
2 answers:
mestny [16]3 years ago
7 0

Answer: LIFO Cost Method

Explanation: The LIFO conformity rule states that the same inventory cost method be used both in the financial statement as well as in the IRS income tax returns.

The rule is used to discourage companies from using the LIFO cost method as it reduces the overall value of the company's assets.

The rule is also designed to prevent organizations from using LIFO accounting to reduce the amount of their taxable income, while using a different inventory cost flow method (such as FIFO) to derive a higher income figure in their financial statements.

postnew [5]3 years ago
5 0

Answer:

Last-in, First-out inventory method

Explanation:

The inventory conformity rule states; If a firm uses the Last-in, First-out method or cost flow assumption for its tax reporting, it must use the same method for its financial reporting. The rule which was put in place by the Internal Revenue Service because firms used Last-in, First-out to report a low taxable income but used First-in, First-out or other methods to report a high income in their financial statements. This rule which was made by the Internal Revenue Service reduced the use of Last-in, First-out by firms in their tax information report and financial statements. If the method used for the two activities do not coincide for whatsoever reason, traces of fraud and its consequences might happen. A firm cannot change it'd method once elected, during an accounting period.

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Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reporte
Mashcka [7]

Answer:

(a) Operating activity

(b) Financing activity

(c) Operating activity

(d) Investing activity

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

So,

(a) Increase in accounts receivable come under the operating activities, and this is to be in a negative amount

(b) Issue of preference shares comes under financing activity, and this is added while computing the financing activities

(c) The depreciation expenses are added in the net income whereas the bond premium amortization is to be deducted from the net income. These both items have come under operating activities

(d) An increase in land value comes under the investing activity.

4 0
3 years ago
You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. If the account earns 4%
Mkey [24]

Answer:

The account balance by the end of year 3 will be : $5,283.2

Explanation:

You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. The account earns 4% interest.

The account balance at the end of year 1 = $2,000

The account balance at the end of year 2 = $2,000 x (1+4%) + $3,000 = $2,080 + $3,000 = $5,080

The account balance at the end of year 3 = $5,080 x (1+4%) = $5,283.2

7 0
3 years ago
A production line at VJ Sukumaran's machine shop has three stations. The first station can process a unit in 10 minutes. The sec
Deffense [45]

Answer:

Answer for the question:

A production line at VJ Sukumaran's machine shop has three stations. The first station can process a unit in 10 minutes. The second has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed one of the two machines). The third station can process a unit in 18 minutes.(This station operates separately from, and simultaneously with stations one and two, which are independent and sequential operations).

Which station is the bottleneck station?

is given in the attachment.

Explanation:

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2 years ago
Too much socializing in the workplace can
iVinArrow [24]
Slow down the productivity of the workplace

7 0
2 years ago
Read 2 more answers
ASAP 65 points.
Bad White [126]

Answer:

Ebay

Explanation:

Ebay’s corporate and sales websites have  a lot of differences, the most notable being the lack of interface to purchase products on the corporate site. Another difference is that the corporate website is more like a newsfeed, showing achievements, advertisements, etc, for the company, whereas the sales site has lots of pictures and products, and it is more visually pleasing because of the colours. A final difference is there is a lot less text and writing on the sales website than on the corporate website.

Some qualities I associate with Ebay are:

That the products sold on the website are often cheaper than in the shops, because you are purchasing directly from the business.

Another quality that i think of is that it enables small businesses to start their companies without the costs of properties. as well as providing big corporations with somewhere to ensure they get sales.

A final quality that i associate with Ebay is the ability to sell your unwanted things to people, therefore making some profit.

I think Ebay does not have a target market, as when you access their sales website, they have products for every age group, baby toys, phones, mobility scooters, etc.

An example of a desire-based advertisement i have seen is the Galaxy advertisement, where the chocolate is portrayed as a luxury product that is desired by everyone.

An example of fear-based advertising is toothpaste advertisements, where they show what could happen if you don’t use their product, which makes you want to buy it.

You're welcome.

5 0
2 years ago
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