Which statement is incorrect regarding other comprehensive income?
Q: Advanced Products Corporation has supplied the following data from its activity-based costing system...
A: Solution:- 1)Preparation of a report showing the first-stage allocations of overhead costs to the ac...
Q: (Calculating debt ratio) (Related to Checkpoint 15.1 on page 534) Sharpgas plc £m £m Current assets ...
A: The balance sheet of the given company shows the breakup of current and non-current assets and curre...
Q: Which of the following are characteristics of the unified tax system that are common to both testame...
A: Marital deduction means a person can transfer unlimited amount to his/her spouse. There is a limit t...
Q: I. Prepare all journal entries for the following chronological transactions which took place in 2021...
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: 1.Jude borrowed money from the bank.He received Php 18,000 & promised to pay Php 22,750 at the end o...
A: Solution:- Given, 1). Received money = Php 18,000 Promised to pay = Php 22,750
Q: On December 15, 2023, an employee filed a lawsuit against Bojack Company for damages suffered when o...
A: Provision is the expected amount of liability or dues that needs to be settled by the business on th...
Q: XYZ Firrn bought P200,000 worth of office equipment its useful life is 6 years with residual value o...
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or chang...
Q: Q4. Describe the nature of the assets that compose the following sections of a balance sheet: Balan...
A: Balance Sheet is a financial statement showing financial position of a b...
Q: 20. The following details were extracted from the records of Mari Jose Cor. As of December 31, 2020....
A: This statement shows income earned and expenses incurred during a particular time period. Net result...
Q: Multiple choice: 1. Entity A had total assets of ₱120M and total liabilities of ₱80M at the beginnin...
A: Entity A had total assets of ₱120M and total liabilities of ₱80M at the beginning of the period. At ...
Q: Exercise 14-11 Algo The following table lists the National Basketball Association's leading scorers,...
A: answers PPG (X) MPG (Y) X * Y X2 Y2 30.4 37.8 1149.12 924.16 1428.84 30.4 36.8 1118....
Q: Retained earnings, May 1 $3,750,000 Net income 720,000 Cash dividends declared 80,000 Stock dividend...
A: If company issue stock dividend, company reduce its retain earnings and increase its capital account...
Q: Love Company purchased a machine on April 1, 2017 for P750,000. At that time, was determined that t...
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage a...
Q: A retailer pays for purchased merchandise within the discount window. The retailer would recognize t...
A: Accounts Payable - Accounts Payable is the creditor for the company. Company owed some amount for th...
Q: On January 1, 2018, Jane Company purchased an equipment with an estimated useful life of 8 years. ...
A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the f...
Q: -The following data as of June 1, 2020 were taken from the records of X: Cash 21,000 Accounts Receiv...
A: Partnership is one of the agreement or arrangement between two or more persons, in which they agree ...
Q: The statement of financial position of the fir before liquidation shows the following: P240,000 Asse...
A: The loan due to a partner is given preferential treatment and is treated as external capital in case...
Q: Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airpo The c...
A: Solution: Planning budget is prepared based on planned volume of the activity. It is different from ...
Q: Which U.S. court's summary opinion may not be treated as precedent for another case? O U.S. Tax Cour...
A: Here given the details of the opinion based decision which are taken consideration for treatment of ...
Q: -Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An ab...
A: Solution 1: Total Manufacturing Overhead 608000 /Total Direct labor 304000 Prede...
Q: Dery Trade has the following cash transactions for the period. Accounts Amounts Cash received from s...
A: A cash flow statement is a financial statement that describes all cash inflows received by a company...
Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse seve...
A: Here discuss about the topic of Amount Realized on the sale of assets and any kind of amount recogni...
Q: The San Miguel Company self constructed an asset for its own use. Construction started on January 1,...
A: The question is related to Borrowing Cost. All Cost that are directly attributable to the acquisitio...
Q: Instruction: For the following items, determine the date of the adjustments and make an appropriate ...
A: Journal is the book of original entry in which all the transactions of the business are recorded ini...
Q: ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC cha...
A: The direct costs incurred in production are debited to work in process account and indirect costs ar...
Q: 1. Assuming an interest rate of 5%, determine the present value for the above options. Which option ...
A: You have not written PV annuity : Option 2, PV annuity will be: 7500 annuity (Period=6, Interest= 5...
Q: partnership is less stable because it can easily disssolved. * What is the basis of capital sharing ...
A: The partnership comes into existence when two or more persons comes together to do the business and ...
Q: On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of...
A: Expenses- Expense is a cost incurred in the course of conducting business, such as selling and distr...
Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $1,200 note receivable that offers 6%...
A: Interest revenue for the period from September 1, 2021 to December 31, 2021 will be recognized in th...
Q: Serpent Home Depot carries wide variety of promotional techniques to attract customers. Kitchen and ...
A: Solution Warranty Expense is the cost that a business Expects to or has already incurred for the rep...
Q: CVP: Before- and After-Tax Targeted Income Head-Gear Company produces helmets for bicycle racing. Cu...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Capital Budgeting Decisions Accounting practice: Your company is considering undertaking a project...
A: Capital Budgeting Decisions: Investment and financial commitment are two aspects of a capital budget...
Q: 24.The Danica Company self constructed an asset for its own use. Construction started on January 1, ...
A: The question is related to Borrowing Cost. All Cost that are directly attributable to the acquisitio...
Q: 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial inc...
A: Pretax financial income = $1,359,000 Equipment Purchased = $1,260,000 Life = 5 years Depreciation on...
Q: Capital Budgeting Decisions Your company is considering undertaking a project to expand an existing...
A: The question is related to Capital Budgeting. The pay back period is the length of time required to ...
Q: Which one of the following statements regarding the qualified domestic trust (QDOT) election is corr...
A: Every country has its own taxation rules. In-country like U. S. and Canada, the transfer of property...
Q: Compute for the unadjusted balance of the Home Office Current account.
A: The question provides us with the balance of branch current account in the books of head office and ...
Q: what amount will be reported for Shareholders’ Equity in the combined company’s statement of financi...
A: Shareholders’ equity is the total amount of the capital which is associated with the shareholders me...
Q: On November 5, 2019, a Muntinlupa Company truck was in an accident with an auto driven by Murcia. Mu...
A: Provision refers to funds that are set aside by the business with a view to cover uncertain future l...
Q: Tian can afford to put a down payment of $8,000 on a car. He can also afford to make monthly payment...
A: The time value of money is the concept that is widely used by organizations or individuals to determ...
Q: Retained earnings, May 1 $3,750,000 Net income 720,000 Cash dividends declared 80,000 Stock dividend...
A: Retained Earnings is the accumulated earnings over the period of time. This is an important part of ...
Q: Sonny Corporation has made paint and paint brushes for the past ten years. Sonny. Corporation is own...
A: Answer - Reason : Because, Oak Corporation is a firm, therefore it is not entitled to any partial ...
Q: In December 2021, Texan Company began including one coupon in each package of candy that it sells an...
A: A debt or obligation of an unspecified amount which can be reasonably approximated is referred to as...
Q: X & Y agreed to form a partnership by contributing their respective assets and equities subject to t...
A: At the time of formation or investment in partnership firm, all non cash assets invested by the part...
Q: Home Office Branch Dr. (Cr.) P (3,200,000) Dr. (Cr.) Sales Shipments to branch Shipments from home o...
A: Branch accounting refers to a system where separate accounts are maintained for each branch.
Q: Division-A makes a part that it sells to customers outside of the company. Data concerning this part...
A: The variable cost changes with change in number of units produced. The fixed costs remains constant...
Q: In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February 2...
A: Treasury stocks are the company's own stock acquired by the company. They are acquired either to ret...
Q: BC Farming Corporation purchases a tractor in 2016 for $400,000 not in
A: The initial value of the asset means the purchase value of the asset Where the depreciation and the ...
Q: The Model Company is to begin operations in April. It has budgeted April sales of $64,000, May sales...
A: The cash budget is prepared to record the cash receipts and payment made during the period. 8
Q: Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on Jan...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively 4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax low, resulting from temporary differences and operating loss carryforwards at the end of the current year 5. The change during the year in a corporations deferred tax liabilities and assets 6. The deferred tax consequences of future taxable amounts 7. The portion of o deferred tax asset for which it is more likely than not that a tax benefit will not be realized 8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively 9. The sum of income tax payable and deferred tax expense (or benefit) 10. The amount of income taxes paid or payable (or refundable) for the current year 11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year 12. The excess of taxable revenues over tax deductible expenses and exemptions for the year 13. Income tax expense divided by income before income taxes1. Which statement is true about intraperiod tax allocation? a. It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return b. It is required for the cumulative effect of accounting changes but not for prick period adjustments c. The purpose is to allocate income tax expense evenly over a number of accounting periods d. The purpose is to relate the income tax expense to the items which affect the amount of tax 2. Which temporary difference would result in a deferred tax asset? a. Tax penalty or surcharge b. Dividend received on share investment c. Excess tax depreciation over accounting depreciation d. Rent received in advance included in taxable income but deferred for financial accounting 3. Which temporary difference would result in a deferred tax liability? a. Interest revenue on municipal bonds b. Accrual of warranty expense c. Excess tax depreciation over…Which of the following is an example of a temporary difference which would result in a deferred tax asset? a. Rent revenue collected in advance included in taxable income before it is included in accounting income b. Investment gains recognized earlier for accounting purposes than for tax purposes c. Use of straight-line method for accounting purposes and an accelerated rate for tax purposes d. Use of a longer depreciation period for accounting purposes than is used for tax purpose
- In relation to accounting for income taxes, which one of the following statements is correct? a. Tax expense is the sum of current tax expense plus deferred tax expense. b. All movements in deferred tax assets and liabilities are recognised in the statement of profit or loss and other comprehensive income. c. Current tax expense is the sum of tax expense plus deferred tax expense. d. Deferred tax liabilities are determined from deductible temporary differences.24. Which statement is incorrect regarding other comprehensive income?a. Other comprehensive income comprises items ofincome and expenses (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by other PFRSs.b. An entity may present items of other comprehensive income either net of related tax effects or before related tax effects with one amount shown for the aggregate amount of income tax relating to those items.c. Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in the current or previous periods.d. Reclassification adjustments arise on all items of other comprehensive income.24. Which statement is incorrect regarding other comprehensive income?a. Other comprehensive income comprises items ofincome and expenses (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by other PFRSs.b. An entity may present items of other comprehensive income either net of related tax effects or before related tax effects with one amount shown for the aggregate amount of income tax relating to those items.c. Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in the current or previous periods.d. Reclassification adjustments arise on all items of other comprehensive income. 25. The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by…
- Which of the following is an example of a temporary difference which would result in a deferred tax asset? Investment gains recognized earlier for accounting purposes than for tax purposes Use of a longer depreciation period for accounting purposes than is used for tax purpose Use of straight-line method for accounting purposes and an accelerated rate for tax purposes Rent revenue collected in advance included in taxable income before it is included in accounting income1. A temporary difference arises when an element of income is reported for tax purposes in the period: a. After it is reported in financial income and before it is reported in financial income. b. After that is reported in financial income. c. Before it is reported in financial income. d. It will have no effect on the taxable amounts.1. The amount of income taxes that relate to financial income subject to tax is reported on the income statement as A. long-term deferred income taxes (credit) C. income tax expense B. current deferred income taxes (debit) D. income tax payable 2. An item that would create a permanent difference in pretax financial and taxable income would be A. using accelerated depreciation for tax purposes & straight line depreciation for book purposes. B. using the percentage of completion method on long-term construction contracts. C. purchasing equipment previously leased with an operating lease in prior years. D. paying fines for violation of laws. 3. Which of the following is the most likely item to result in a deferred tax asset? A. using completed contract method of recognizing construction revenue tax purposes, but using percentage of completion method for financial reporting purposes. B. using accelerated depreciation for tax purposes but straight-line depreciation for accounting purposes.…
- 1. cont... Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes.For each item below, indicate whether it involves: 1. A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. 2. A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. 3. A permanent difference. (e) Installment sales of investments are accounted for by the accrual method for financial reporting purposes and the installment method for tax purposes. (f) For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets’ lives are shorter for tax purposes. (g)…Intra-period tax allocation is the allocation of the total income tax expense to the various revenues that brought about the tax and it gives rise to the recognition of deferred tax asset and deferred tax liability. a. TRUE b. FALSEA purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross income? c. reduce tax owed after tax has been determined?). Another purpose of an adjustment to income is to (option: a. help determine adjusted gross income? b. calculate taxable income after agi has been determined? c. be subtracted after agi to help determine taxable income?)