Jason's employer pays year-end bonuses each year on December 31. Jason, a cash-basis taxpayer, would prefer not to pay tax on his bonus this year (and actually would prefer his daughter to pay tax on the bonus). So, he leaves town on December 31, 2018, and has his daughter, Julie, pick up his check on January 2, 2019. Who reports the income and when?
A. Jason in 2018.
B. Julie in 2019.
C. Julie in 2018.
D. Jason in 2019.
E. None of the choices are correct.
Answer: A
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a. emphasize the ineffectiveness of analysts' calculations, and focus on liquid assets at a point in time instead of a period of time. b. focus on cash instead of working capital, and they represent a point in time instead of covering a period of time. c. focus on working capital instead of cash, and they represent a point in time instead of covering a period of time. d. are ignored by most creditors, and focus on working capital instead of cash.
Liquidity refers to the speed with which the asset can be converted to an expense
Indicate whether the statement is true or false
Relationships between risks Identify how an increase in each of the following factors (assuming the other factors remain unchanged) will affect planned audit evidence. Audit risk, ? Inherent risk, ? Control risk, ? Detection risk, ? Tolerable misstatement
With cross-tabulation, two variables are arranged in a:
A) consistent and significant pattern B) cross-tabulation cell C) chi-square cell D) cross-tabulation table E) stacked bar table