Unearned revenues are general revenues that Liabilities created when a customer pays in advance for products or services before the revenue<span> is earned
If a client pay us for our service in advance, we now have an obligation to provide services that we must fulfill in the future.
In accounting, we could consider this obligation as a liability which will be recorded in credit when it increased.
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180 days of the most recent paycheck reflecting the discrepancy.
Answer:
No, the tax treatment will not be same.
All the amounts received by Billy, are during the course of business, and are related to the damages caused to business, and to him personally, and under tax these all amounts are tax free:
Amount received for personal injury of $100,000 is tax free as is related to expense of his personal recovery.
The amount of $50,000 and $15,000 though received from different sources but is for the same purpose of loss of income and destruction caused to business.
Whereas, amber is an employee, she is not the owner and therefore, all of the benefits received from her workplace are taxable.
As the policy was purchased by the employer and therefore, any amount received from such policy by amber will be taxable as a perquisite received from employer.
Answer:
B) proportional
Explanation:
In the case of the proportional tax structure the marginal tax rate should be equivalent to the average tax rate without considering the high level of taxable income or low level of taxable income
Therefore in the given case, the tax structure should be proportional
hence, the correct option is B
And, the same is to be considered
Answer:
be greater than the net operating income under variable costing
Explanation:
Under absorption costing method it includes the total cost of the product that is the fixed cost and variable cost to account for the production.
Whereas in variable costing we only consider the variable cost of production and deduct the fixed costs from the contribution margin.
As George corporation has no beginning inventory and production exceeds sales therefore cost of goods sold reduces( due to closing inventory) resulting in greater net operating income than in variable costing .
