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3 years ago

Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:

Business

1 answer:

nignag [31]3 years ago

7 0

Answer:

LIFO conformity rule.

Explanation:

LIFO refers to the Last in first out method. In this inventory system, the firm sells last units at first stage and then sells according to that

According to the given situation, the LIFO conformity rule requires that the taxpayer follow the same inventory cost flow as used for tax reporting purposes in the financial statement.

Therefore the correct answer is LIFO conformity rule.

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The following errors took place in journalizing and posting transactions:

yuradex [85]

Answer:

<u>Journal 1</u>

Debit : Prepaid Expense $37,600

Credit : Cash $18,800

Credit : Insurance Expense $18,800

<u>Journal 2</u>

Debit : Dividends $18,000

Credit : Wages $18,000

Explanation:

Journal 1

The first error has to be corrected by debiting the Prepaid Expenses by twice the amount paid to cancel the effect of a credit entry made to that account. Cash is credited to show the correct credit entry that was supposed to be made. Insurance expense is credited to cancel the debit entry made to this account in error.

Journal 2

The error made is called error of principle. This is were the transaction is recorded in the wrong class of accounts. Simply, Debit the Dividends and credit the Wages Account to record and reverse the error out of the Wages Account into the Dividends Account.

6 0

3 years ago

Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar b

STatiana [176]

Answer:

$25 per batch

Explanation:

Combined final sales value:

= Sales value of refined sugar + Sales value of industrial fiber

= $65 + $65

= $130

Financial advantage:

= Combined final sales value - Further Processing - sugar beets costs - Cost to Crush

= $130 - ($17 + $21) - $54 - $13

= $130 - $38 - $54 - $13

= $25 per batch

Therefore, the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar is $25.

8 0

3 years ago

The tax treatment regarding the sale of existing assets that are sold for more than the book value but less than the original pu

8_murik_8 [283]

Answer:

capital gain tax liability

Explanation:

Capital gain tax is defined as the type of tax that is paid when the owner of an investment or asset makes a profit from its sale.

For example when the assets are sold for more than the book value but less than the original purchase price, there is a profit made that is called capital gain.

The tax applied to this capital gain is called capital gain tax liability.

6 0

3 years ago

Make a simple poem regarding the learning’s that you acquired in managing the finances. (4 Stanzas only with rhyme and with no m

dangina [55]

Answer:

My net worth is my assets less my liabilities

I should therefore not spend above my capabilities

Pay off the debt required and then a little more

That way I can have, a great credit score

Like everything else, I must plan my finances

Create a budget and include my expenses

And make space for an emergency fund

So on rainy days I don't find myself cashless and hamstrung

Its important to remember that I won't work forever

I should therefore set something aside, to fall back on

When I'm too old and grey to embark on strenuous endeavor

I'll be well taken care of because I remembered my pension

And I shouldn't forget, to keep a proper record

Get educated in a financially sound method

That way I can know what comes in and what goes out

I'll be sure of my situation and leave room for no doubt

4 0

2 years ago

What is the primary characteristic that differentials a zero based budget from a conventional budget. A. A zero based budget doe

Oksana_A [137]

Answer:

B. The zero based budget requires managers to re-justify every planned expenditure every year.

Explanation:

A zero based budget is one that does not take into account historical data when it is considering the present year budget. Each departmental requirement is re-evaluated and a new amount is assigned as budget for the year.

However conventional budgets carryover the previous year's expenses as a base data point. This results in similar budgeting across years.

So the main difference between the two is that zero based budget requires managers to re-justify every planned expenditure every year.

8 0

3 years ago