Answer:
2. Varied- the SEC relies on FASB to develop standards but gives advice and recommendations to the private sector as needed.
Explanation:
The FASB, Financial Accounting Standards Board is an independent non- profit organization, formed in 1973, that is tasked with establishing accounting as well as financial reporting standards for profit and nonprofit organizations in the USA. It also has the authority to interpret generally acceptable accounting principles for private and public companies in preparation of financial reports and presentation of such reports. The SEC like every other organization, relies on the FASB to formulate rules and regulations (standards) for public companies mainly while giving private companies recommendations. The FASB is recognized by state accounting boards such as AICPA (American Institute of Certified Public Accountants) among other accounting boards.
I hope this helps.
Answer:
C) Overstating or understating allowances and reversing amounts in the future to smooth out net income over time.
Explanation:
Cookie jar reserve is defined as an accounting practice by businesses where the profit a company makes from successful years are reserved to cover up for years with losses. It balances losses from unsuccessful years.
Investors are led to believe that losses in bad years are less than they actually are.
For example not allocating an expense to a particular accounting year but instead allocating it to a year when the company made profits.
In essence it is overstating or understating allowances and reversing amounts in the future to smooth out net income over time.
Answer:
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Answer:
Total taxable amount will be equal to $7000
So option (d) will be correct answer
Explanation:
According to IRS benefit which is received under the disability which shall be fully taxable only if
Employee pays premium on such policy entirely with pre tax dollars
Here in the given question premium amount paid by employee herself and with the assumption of paying such premium with pre tax dollars hence it is treated as taxable fully i.e 6500$
So 500$ sick pay under welfare fund is treated as earned income so fully taxable.
Therefore total taxable amount will be equal to $6500 + $500 = $7000
So option (d) will be correct answer
Answer:
The correct answer is option A.
Explanation:
The law of diminishing returns states that as we go on employing more and more unit of input while keeping other inputs constant, the return from each additional unit of input will go on declining.
This means that the output produced from each additional unit of input will go on declining.
Here, as capital is kept constant and labor is increased by a unit, the output at first increases by 5 units from 20 to 25. But later when input is again increased by a unit, the output increase by only 3 units from 25 to 28.
This shows the law of diminishing marginal returns where the marginal returns from a unit of labor is declining.
