Answer:
The answer is: Stone can report $8,750 as deferred income tax liability
Explanation:
Deferred income tax liability: income tax owed by a business that is put off into future years because a difference exists between GAAP accounting (in this case book depreciation) and income tax accounting.
The deferred tax liability is based on the difference on depreciation. Since 20x9 is Stone Co.'s first year of operations, the depreciation difference in this year must equal the net future depreciation difference.
To calculate the deferred tax liability balance we take the difference in depreciation and multiply it by the future tax rate: $25,000 x 35% = $8,750.
Answer:
A. ceases to exist unless sold or taken over by Yoshi's heirs.
Explanation:
A sole proprietorship is a from of business which is owned by one person. The owner is usually the decision maker.
One of the disadvantages of sole proprietorship is lack of continuity. The business usually ends when the owner dies. Although , family members can take over running the business.
I hope my answer helps you.
Answer:
It may turn off it's current customer base and cause them to purchase a competitors ice cream.
Explanation:
Market penetration strategy is the process of selling current products to an already existing market so as to obtain a higher market share by taking the market shares from the other competing companies.
Market penetration strategy uses low prices to generate demand for a product and increase market share. Bud's bucket ice cream decides to penetrate the gourmet market by offering its same ice cream at high prices instead of reducing the price, this might lead to a reduction in their current customer base.
The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.
<u>Explanation:</u>
- A credit rating comes in the list of the company’s annual performance targets. It helps to decide the company’s current year progress.
- A company’s debt-to-equity ratio is used to know the debt of a company as compared to the total equity. If this ratio is high, the company is taking on much debt.
- The current ratio marks a way to compute the liquidity of the company. It shows how well a firm is placed to meet the short term obligations. Broadly, a 2-1 ratio is considered a good ratio.
- The interest coverage ratio tells how well the company may pay its future loan payments. If the ratio is higher than 3-to-1, it suggests that the company is in a good position to make future payments.
Answer:
Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision - True.
Bribery is the giving or offering of items of value (especially money) to a government official in exchange for favorable treatment. Bribing is unethical and illegal, but it is common practice in many countries, so common that it is expected.
The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics - True.
In the seventies, U.S. Government investigations found that hundreds of U.S. companies operating abroad had turned to bribery in order to gain the favor of foreing officials. This conduct is related to the statement explained above: bribery is pervasive in many countries around the world.
Managers are required to follow specific rules issued by the IMA for internal financial reporting. - False.
The IMA Code of Ethics does not provide specific rules for financial reporting (these specific rules are found instead either in the Generally Accepted Accounting Principles (GAAP) or in the or in the International Financial Reporting Standards (IFRS)).
The IMA Code of Ethics instead provides principles, or ethical guidelines, to be followed by participants in the management accounting profession.
Ethics is more than obeying laws - True.
Ethics goes beyond what is legally right, and is more related to what is morally right. An ethical person should do the right thing even if there is no legal code explicitely telling him to do so.
The Sarbanes-Oxley Act addressed public company accounting reform. - True
This act added requirements for public accounting firms, and included legal penalties including possible jail time for certain types of misconduct. The Act was enacted following major accounting scandals such as Enron.
