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3 years ago

Profits from a sole proprietorship are reported as taxable income and

Business

2 answers:

lawyer [7]3 years ago

6 0

Answer:

Profits from a sole proprietorship are reported as taxable income and are subject to a self-employment tax of approximately 15%

Explanation:

Textbook!!

pantera1 [17]3 years ago

4 0

Profits from a sole proprietorship are reported as taxable income and is reported on Schedule C (Profit or Loss From Business) of the proprietor's Form 1040 (US Individual Tax Return).

Explanation:

A sole proprietorship can be defined as the business ran or operated by a single individual. They are generally self-employed and must pay the self employment (SE) tax on the income that the individual earned from the business.

The Schedule C is the income statement of the proprietor for the financial year. To complete this schedule, the profit of the business is evaluated by including all the expenses and income with the cost of the sold goods.

The resultant is called the net income (income - expenses) of the business which is also known as the taxable income of the business.

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Which of the following may either increase or decrease retained earnings? a. Prior period adjustments. b. Disposals of treasury

Dmitry_Shevchenko [17]

Answer:

a. Prior period adjustments.

Explanation:

"Retained earnings is the cumulative total of earnings that have yet to be paid to shareholders. These funds are also held in reserve to reinvest back into the company through purchases of fixed assets or to pay down debt."

Prior period adjustments in the beginning balance are key to calculate the retained earnings at the end of the period:

Retained Earnings = RE Beginning Balance + Net Income (or loss) – Dividends.

Therefore, prior period adjustments may either increase or decrease RE.

Reference: Morah, Chizoba. “Which Transactions Affect Retained Earnings?” Investopedia, Investopedia, 11 July 2019

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3 years ago

g A U.S. firm buys sardines from Morocco and pays for them with U.S. dollars. Other things the same, U.S. net exports a. increas

Roman55 [17]

Answer:

d. decrease, and U.S. net capital outflow decreases.

Explanation:

net exports = total exports - total imports

in this case, imports increase, so net exports will decrease

The net capital outflow represents the money being invested in a country. If foreign investors invest in the US economy then the net capital outflow will increase. But if US investors invest in foreign economies, the net capital outflow will decrease. In this case, the US company paid the foreign company in US dollars, therefore, the foreign company now has a US asset (US dollars).

6 0

3 years ago

Pls, the meaning of warranty

kenny6666 [7]

Answer:

A warranty is a written promise by a company that, if you find a fault in something they have sold you within a certain time, they will repair it or replace it free of charge.

6 0

3 years ago

A company had service revenue of $257,000, rent expense of $10,700, utility expense of $4,200, salary expense of $19,200, deprec

Reil [10]

Answer:

Income summary has a $208,630 credit balance before being closed

Explanation:

The closing entries should be:

Dr Service revenue 257,000

Cr Income summary 257,000

Dr Income summary 48,370

Cr Rent expense 10,700

Cr Utility expense 4,200

Cr Salary expense 19,200

Cr Depreciation expense 9,700

Cr Advertising expense 4,570

Income summary

Debit Credit

18,370 257,000

208,630

In order to close income summary:

Dr Income summary 208,630

Cr Retained earnings 208,630

If you want to close dividends:

Dr Retained earnings 18,700

Cr Dividends 18,700

7 0

4 years ago

If you collect personal information about your customers, what should you do? a. tell customers how you will use and protect the

Contact [7]

Information regarding Contacts Being aware of the best ways to get in touch with your customers is essential for establishing productive business relationships.Make sure to get their mailing addresses, cell phone numbers, email addresses, and home phone numbers.

Why is it crucial to safeguard customer information?

Protecting your business means safeguarding the personal information of your customers.You can safeguard your brand and market value, your reputation, and yourself from costly lawsuits by protecting customer privacy.

We ought to gather information from new customers when?

Collecting fundamental data would be even simpler for a B2C business.Make sure you get their name, gender, age, occupation, location, email address, phone number, and household income. Also get their location.This ought to be sufficient for creating a fundamental customer profile and communicating with them as needed.

Learn more about Information here:

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3 0

1 year ago