Explain the accounting for treasury shares
TREASURY SHARES
Firms recognize no gain or loss from purchasing their own shares or reissuing previously purchased shares. Differences between the purchase and reissue price are not earnings transactions but affect contributed capital accounts. Firms account for the purchase of treasury shares using either the cost method or the par value method or the constructive retirement method. These methods differ in terms of the shareholders' equity accounts affected, but all result in an equal reduction in total shareholders' equity when firms purchase their own shares.
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Which of the following arguments is supportive of allocation of income taxes?
a. Future predictions of net income are enhanced when income taxes are allocated. b. Income tax expense computed under interperiod tax allocation is a better predictor of future cash flows than income taxes actually paid. c. Income tax is not an expense; it is a sharing of profits with government. d. Income tax expense based on actual payments is more understandable to users than allocated income taxes.
A typical intranet is a dynamic website, to which employees can add pages, modify content, and comment on what's already on the site
Indicate whether the statement is true or false
Transfer prices are used for all of the following reasons except:
a. Promote operating efficiency. b. Insure optimal resource allocation. c. Transfer pricing is used for all of the above reasons. d. Help promote goal congruence.
Why might we expect labor relations practices around the world to converge to common practices? Is this occurring - why or why not?
What will be an ideal response?