Nemo's Seafood Restaurant Company pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by
a. Congress, through enabling legislation.
b. the courts, through the adjudicatory process.
c. the U.S. Constitution, through the tax and spend clause.
d. the U.S. Department of the Treasury, through a legislative rule.
a
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At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in its lease receivable account. The contract calls for December 31 payments of $15,000 . The lessor's annual reporting period ends December 31 and the contract reflects 10% interest. The lessee made the first payment as required. The direct method statement of cash flows for the lessor should reflect
which of the following in the first year of the lease contract (ignore noncash disclosures)? a. $15,000 operating cash flow b. $6,000 operating cash flow; $9,000 investing cash flow c. $6,000 operating cash flow; $9,000 addition reconciling adjustment d. $9,000 investing cash flow
Which of the following statements about a multistep income statement is correct?
A. It groups all revenues together. B. It reports a different amount of net income than a single-step income statement. C. A key measure available on a multistep income statement is the amount of profit earned over the cost of goods sold. D. It includes expenses that would not appear on a single-step income statement.
According to a study by the Kauffman Foundation, which of the following is the largest source of funding for businesses that have been operating at least five years?
A. public financing B. loans C. angel financing D. venture capital
A procedure that would most likely be used by an auditor in performing tests of control activities that involve segregation of functions but which leave no transaction trail is
A. Inspection. B. Observation. C. Reperformance. D. Reconciliation.