Gain or loss is always recognized when realized for tax purposes.
Answer the following statement true (T) or false (F)
False
Gains and losses may not be recognized because they are deferred or excluded from taxable income.
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Which of the following statements is true?
A) In order to remain impartial, the FASB discourages public input during development of standards. B) FASB accounting standards are the result of clearly defined objectives, an integrated body of theory, and the known consequences of actions. C) The FASB deliberates and issues accounting standards only after receiving a formal letter of request from the SEC. D) Accounting standards, which have economic and political consequences, are often the result of compromise.
A letter would be appropriate for which of the following situations?
A) Sending the list of public holidays for the year to all employees B) Alerting employees that a flex-time schedule will go into effect C) Communicating news to a client D) Sending the project schedule to the team E) Dispatching the performance chart of the employees
A method that assigns relative weights to the selection criteria and selects supplier with the maximum total score is the ______.
A. optimization method B. factor rating method C. analytic hierarchy process (AHP) D. sourcing algorithm
At the end of the current year, using the aging of receivable method, management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $375. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A.
| Bad Debts Expense | 15,375 | |
| Allowance for Doubtful Accounts | 15,375 |
B.
| Bad Debts Expense | 16,125 | |
| Allowance for Doubtful Accounts | 16,125 |
C.
| Accounts Receivable | 15,750 | |
| Bad Debts Expense | 375 | |
| Sales | 16,125 |
D.
| Accounts Receivable | 16,125 | |
| Allowance for Doubtful Accounts | 16,125 |
E.
| Bad Debts Expense | 15,750 | |
| Allowance for Doubtful Accounts | 15,750 |