An S corporation generated $160,000 ordinary taxable income this year. The shareholders must pay both income and self-employment tax on their pro rata shares of this income.
Answer the following statement true (T) or false (F)
False
The shareholders must pay income tax but not self-employment tax.
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Select the incorrect statement regarding the cash budget.
A. The total cash available is calculated by adding cash receipts and the ending cash balance. B. The cash budget helps managers to anticipate cash shortages and excess cash balances. C. Cash inflows and outflows indicated on the cash budget are reported on a company's pro forma statement of cash flows. D. Cash payments may include outflows for inventory, selling and administrative expenses, and equipment purchases.
Information as to which databases are required for a new system can be obtained from the entity relationship diagram
Indicate whether the statement is true or false
Merchandise costing $750 was sold on credit to Jaffes Company for $1,000 . Five days later, $150 of merchandise was returned. The cost of the returned merchandise was $115 . Assuming the periodic inventory system is used, the entry to record the return of the merchandise is a
a. debit to Merchandise Inventory for $115 and a credit to Cost of Goods Sold for $115. b. debit to Accounts Receivable for $115 and a credit to Sales Returns and Allowances for $115. c. debit to Merchandise Inventory for $150 and a credit to Cost of Goods Sold for $150. d. debit to Sales Returns and Allowances for $150 and a credit to Accounts Receivable for $150.
A system that enables plans to be adjusted according to capacity and other requirements by synchronizing material purchase and component production plans with the master schedule and by providing feedback on manufactured items and materials on hand is a ______.
A. closed loop MRP system B. open loop MRP system C. closed loop CRP system D. open loop CRP system