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3 years ago

Accounting systems that must follow gaap. financial

Business

1 answer:

frez [133]3 years ago

8 0

Accounting systems that must follow GAAP are known as financial accounting systems.

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All else the same, if a bank's liabilities are more sensitive to interest rate fluctuations than are its assets, then ________ i

Bad White [126]

Answer:

A) an increase; reduce

Explanation:

All else the same ,if a bank liabilities are more sensitive to interest rate fluctuations than are its assets, then an increase in interest rates will reduce bank profits.

A bank is said to be sensitive towards to interest rates means that the bank revalue its liabilities on the basis of the change in the interest rates. Thus if the interest rates increases it means the liabilities of the bank has increased on which the bank is liable to pay higher interest which will automatically reduce the bank profits as the interest payable by the bank is an expense for the bank.

6 0

4 years ago

"Ayres Services acquired an asset for $80 million in 2021. The asset is depreciated for financial reporting purposes over four y

Zepler [3.9K]

a. The cumulative temporary book-tax difference for the depreciable asset are as follows:

December 31, 2021 = $60 million

December 31, 2022 = $40 million

December 31, 2023 = $20 million

December 31, 2024 = $0

b. The balance to be reported in the deferred tax liability account are as follows.

December 31, 2021 = $15 million

December 31, 2022 = $10 million

December 31, 2023 = $5 million

December 31, 2024 = $0

Explanation:

Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.

In the attached excel file, the following formula are used:

Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)

Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate

8 0

3 years ago

What is brand repositioning?

timofeeve [1]

Brand repositioning is when a company changes their status in the marketplace. Like changes to the marketing mix including product, price, location, and promotion. Repositioning happens to fulfill consumer wants and needs

Hope this helps!

3 0

3 years ago

Which of the following could explain why a business might choose to operate as a corporation rather than as a proprietorship or

frozen [14]

Answer:

a. Corporations generally find it easier to raise large amounts of capital.

Explanation:

Because of limited liabiliy it is easier to raise capital.

7 0

3 years ago

___ refer to the important factors that policy analysts will use to assess the proposed policy alternatives. They are also used

mr_godi [17]

Answer:

2. Evaluative criteria.

Explanation:

Evaluative criteria is the process by which choices are made between different alternatives on the basis of defined criteria. For example a policy analyst may decide to only select policies that allow for employee involvement in decision making of a company's processes.

Comparism are made between available alternatives and the best option that meets the criteria most closely is chosen.

Evaluative criteria is also used to analyse impact of the policy after implementation, and if the objective is not being met change of policy is considered.

4 0

3 years ago