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aliina [53]
3 years ago
10

Davison Company determined that the book basis of its net accounts receivable was less than thetax basis of its net accounts rec

eivable by $800,000 due to a difference in the allowance for baddebts account. This basis difference is characterized as:A)Favorable permanent difference.B)Unfavorable permanent difference.C)Deductible temporary difference.D)Taxable temporary difference.
Business
1 answer:
Vesnalui [34]3 years ago
7 0

Question:

Davison Company determined that the book basis of its net accounts receivable was less than the tax basis of its net accounts receivable by $800,000 due to a difference in the allowance for bad debts account. This basis difference is characterized as:

A) Favorable permanent difference.

B) Unfavorable permanent difference.

C) Deductible temporary difference.

D) Taxable temporary difference.  

Answer:

The correct answer is C) Deductible Temporal Difference

Explanation:

A deductible temporary difference is a temporary difference that will result in amounts that can be subtracted in the future when determining taxable profit or loss. A temporary difference is the variance between the carrying amount of an asset or liability in the balance sheet and its tax base.

The future tax deduction enabled by the writing off of bad debts creates a future tax benefit and is usually recorded on the balance sheet as a deferred tax asset.

Cheers!

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Answer:

Stocks and Bonds

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Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.

Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it.  Every investor is also aware that  investments with higher risks attract higher returns.  However, determining the certainty of the returns is difficult.

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3 years ago
"In about 100 words, summarize the advantages and disadvantages of using a mall-style commerce service provider such as eBay Sto
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Answer:

here are summarised  advantages and disadvantages of using mall style commerce service provider .

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Explanation:

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Explanation:

Telecommuting is also generally referred to as teleworking and it can be defined as an act which typically involves the process of completing a job function, tasks or work assignments through the use of the internet and in a location other than the office itself.

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3 0
3 years ago
A set of collectible dolls was very popular during the holiday season, but, as is the case with many toy fads, has dropped off s
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When there is a surplus of goods and the government does not intervene to stabilize prices, the prices will keep dropping in an effort to sell the good off.

According to the Law of Supply and demand:

  • prices drop when the supply of a good is more than the demand to encourage people to buy more of the goods.

This will be done in an effort to at least recuperate some of the costs of production instead of suffering a total loss when people don't buy the goods as is the case with these holiday toys.

We can therefore conclude that if the government does not intervene to either subsidize the price of these toys or control their price, the prices will keep falling to entice people to buy the goods.

<em>Find out more at brainly.com/question/12169648.</em>

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3 years ago
On January 1, Year 1, Burrows, Inc. received $8,900 and agreed to pay $10,000 on January 1, Year 3. The market rate of interest
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Answer:

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Since Cash account is an asset, it should be credited when it decreases.

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