Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. Which of the given conditions would cause break-even point to decrease?

a. Unit variable cost decreases

b. Total fixed costs increase

c. Unit variable cost increases

d. Unit selling price decreases

2.Which of the given would be included in cost of a product manufactured according to variable costing?

a. Property taxes on factory buildings

b. Direct materials

c. Interest expense

d. Sales commissions

3. Pink Corporation is accrual basis taxpayer which uses recurring item exception to economic performance test for all applicable years. For 2009, corporation's income subject to state income tax was $500,000 and state corporate tax rate was 6%. During 2009, corporation paid $18,000 on its estimated state income tax liability for that year. Remaining $12,000 of 2009 state income tax was paid in March 2010. In June 2009, corporation paid $4,000 on its year 2007 state income tax liability, as a result of the audit of 2007 return that was conducted in 2009. As a result of the above:

a. Pink must deduct $18,000 as state income taxes for 2009.

b. Pink must deduct $22,000 as state income taxes for 2009.

c. Pink must deduct $30,000 as state income taxes for 2009.

d. Pink must deduct $34,000 as state income taxes for 2009.

e. None of the above.

4. Taxpayer has consistently, but incorrectly, used the allowance for bad debts. At beginning of the year, balance in the allowance account is $90,000.

a. If IRS examines taxpayer's return and needs taxpayer to change accounting methods, taxpayer will be needed to identify the extra $90,000 of income (one-half in current year and one-half in following year) as adjustment due to change in accounting methods.

b. If taxpayer voluntarily changes methods, the $90,000 adjustment can be spread over current and three following years.

c. If taxpayer voluntarily changes methods, $90,000 reserve can be used to absorb bad debts until the account balance is zero.

d. If IRS examines taxpayer's return, no adjustment to reserve account will be needed if balance is consistent with prior bad debt experience.

e. None of the above.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M917154

Have any Question? 


Related Questions in Accounting Basics

Question 1 ldquoaccountancy is an information systemrdquo

Question 1. “Accountancy is an Information System”. Do you agree? Substantiate your answer with reasons. How does an Accountant help in planning and controlling a large commercial organization? Explain.    Question 2. Th ...

Data for the year-end adjustments for al geromes courier

Data for the year-end adjustments for Al Gerome's Courier Services are as follows: Insurance expired during the year ($950.00) Depreciation of Equipment for the year ($9,860.00) Salaries accrued at December 31 ($5100.00) ...

Question 1the accounts receivable account has total debit

Question 1 The Accounts Receivable account has total debit postings of $1,900 and credit postings of $1,100. The balance of the account is a/an A. $800 debit. B. $800 credit. C. $2,600 credit. D. $2,600 debit. Question 2 ...

Dq1respond to the ethics discussion case at the end of

DQ1 Respond to the Ethics Discussion Case at the end of chapter 5 in the textbook. Dan owns a successful sports bar in downtown Providence. The state is considering legislation that would restrict the sale of alcohol in ...

Aountingfalcons incorporatedassetsnbsp20132012cash and

Accounting FALCONS INCORPORATED Assets   2013 2012 Cash and Marketable Securities 10 80 Mc.. Receivable 375 315 Inventories 615 415 Total Current Ass. 1,000 810 Net plant and equipment 1,000 870 TOTAL ASSETS 2,000 1,680 ...

Principles of accountingthere are 10 questions each worth

Principles of Accounting There are 10 questions, each worth 10 points. Answer them fully and upload your document to the dropbox below. QUESTION 1 Harriet's Toy Shop had net sales of $852,000. The gross profit was $230,0 ...

Gasbvisit the website of the governmental accounting

G.A.S.B Visit the website of the Governmental Accounting Standards Board (G.A.S.B.) at http://gasb.org. Review the website to learn about the organization, its act ivies, and its goals. Review one or more of the "Plain-L ...

Assessment - written report - individual assessment purpose

Assessment - Written Report - individual assessment Purpose: This assessment is designed to reinforce the subject content and develop students' skills and application of knowledge of the subject content to business situa ...

Milestone three guidelinesoverview the final project for

Milestone Three Guidelines Overview: The final project for this course is the creation of a portfolio consisting of a report and spreadsheets. You will be placed in a real-world scenario in which you will take the role o ...

Discussion questions 1 and 2dq 1accounting cyclefinancial

Discussion Questions 1 and 2 DQ #1:Accounting Cycle Financial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company. Why would different comp ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen