A firm's ending equity equals the firms beginning equity plus any change in retained earnings
Indicate whether the statement is true or false
TRUE
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The Sting Company began operations at the beginning of 2018 and had GAAP (book) income of $350,000 and taxable income of $280,000. During 2018, depreciation expense for tax purposes exceeded GAAP (book) depreciation expense by $210,000, while warranty expense for GAAP (book) purposes exceeded warranty expense for tax purposes by $140,000. These two temporary differences will reverse as follows: Depreciation Warranty2019$35,000 70,000 2020 70,000 56,000 2021 105,000 $14,000 The enacted income tax rate for 2018 and 2019 is 38%, while the enacted income tax rate for 2020 and 2021 is 40%. Sting did not make any income tax payments during 2018. Requirement:Prepare the journal entry to record income tax expense for the year ended December 31, 2018.
What will be an ideal response?
Auditing standards permit both statistical and nonstatistical methods of audit sampling.
Answer the following statement true (T) or false (F)
The "law of large sample size" refers to:
A) confusing the size of the sample with the representativeness of the sample B) the industry standard referring to the need for a sample size of 500 respondents C) the industry standard that the accuracy benefits of excessively large samples are typically greatly justified by their increased costs D) calculating the restrictive power of the sample to 95% or more E) all of the above
Which of the following is a method of reducing escalation of commitment?
A. Splitting the responsibility for project decisions B. Increasing a decision maker's cognitive dissonance C. Motivating decision makers to be highly optimistic about their decisions D. Encouraging decision makers to not give up on their poor choices