Answer:
Limitation on Business Interest Deductions:
B. The limitation is calculated as a percentage of the taxpayers total taxable income
Explanation:
30% (or 50% for years 2019 and 2020, as amended by the CARES Act) of the adjusted taxable income of a business is the limit of business interest expense that is allowed by the IRS. The excess after this limitation may be carried forward by the tax paying organization to future tax years indefinitely until the interest expense is completely applied.
Following the CARES Act, "the business interest expense deduction limitation does not apply to certain small businesses whose gross receipts are $26 million or less, electing real property trades or businesses, electing farming businesses, and certain regulated public utilities. The $26 million gross receipts threshold, which applies for the 2020 tax year, is adjusted annually for inflation."
Answer: E
Explanation:
E
Sales Volume Variance equals (actual sales volume - budgeted sales volume) * budgeted sales price
Answer: Quick ratio.
Explanation:
The quick ratio(QR) also known as the acid test ratio, is a measure of the assets a business posseses that can quickly be converted to cash to settle current liabilities/costs.
The formula for QR is:
QR = (cash/equivalent+marketable securities+accounts receivable) ÷ current liabilities
Answer:
C. If nominal GDP rises but real GDP remains unchanged, it must be that production has increased.
Explanation:
The CPI and the GDP price index and implicit price deflator are alternative measures of inflation in the U.S. economy. The choice of which one to use in a given scenario likely depends on the set of goods and services in which one is interested as a measure of price change. The CPI measures price change from the perspective of an urban consumer and thus pertains to goods and services purchased out of pocket by urban consumers. The GDP price index and implicit price deflator measure price change from the perspective of domestic production of goods and services and thus pertain to goods and services purchased by consumers, businesses, government, and foreigners, but not importers. In addition, the formulas used to calculate these two measures differ.
Answer: Option B
Explanation: In simple words, dominant strategy refers to the situation in which one strategy gives higher outcome to one player as compared to other player.
Under such a situation the dominant player gets an absolute advantage against his or her opponent and will get better results bio matter how hard and efficient the opponent plays.
For example- In computer industry Apple has a dominant strategy which they have earned out of the market experience and no matter how much other companies try, they can not break customer base of Apple.