The requirements for an exception to the economic performance test that allows the deduction of year-end accruals include:
I.either the expense is not material for both tax and financial purposes or the accrual results in a better matching of revenue and expenses.II.the taxpayer consistently treats the item as incurred in the year the all-events test is met.?
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. Neither statement is correct.
Answer: C
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When a firm attempting to create unique products or services for particular market niches, in order to achieve relatively high profit margins, this is best known as
a. A quality strategy b. A low-cost leadership strategy c. A vertical integration strategy d. A product differentiation strategy
Why was slavery allowed by the Constitution?
a. The Constitution sought to end slavery through omission. b. The Constitution did not deal with what the creators considered “economic matters.” c. Slavery was universally considered acceptable at the time. d. It was allowed in order to obtain ratification from southern states.
Which of the following occurs under Chapter 13 of the United States Bankruptcy Code?
A) A portion of the consumer-debtor's earnings is paid into court for distribution to creditors over a period of three years. B) Only involuntary petitions for bankruptcy may be filed under Chapter 13. C) Creditors can force petitioners into Chapter 13 bankruptcy. D) A creditor is paid in full for amounts owed by a debtor.
When can a sole proprietorship legally be dissolved?
a. sales exceed $1 million
b. the partners reorganize the firm's structure
c. earnings are less than $500,000
d. the owner donates profits
e. the owner dies