For Year 1, Oscar Company records depreciation expense of $12,000 on its income statement and $9,000 of MACRS depreciation on its tax return. Which of the following answers is correct regarding the difference between the two figures?
A. The amount of depreciation recorded on the income tax return must be incorrect.
B. Deferred taxes of $3,000 are subtracted from taxable income of Year 1.
C. Net income is understated by $3,000 on the Year 1 income statement.
D. The difference in depreciation expense is caused by differences between GAAP and the tax code.
Answer: D
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Activity-based management focuses management's attention on activities with the objectives of improving customer value and profit
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1.A tariff on steel imports tends to improve the competitiveness of domestic automobile companies. 2.If a tariff reduces the quantity of Japanese autos imported by the United States, over time it reduces the ability of Japan to import goods from the United States. 3.A compound tariff permits a specified amount of goods to be imported at one tariff rate while any imports above this amount are subjected to a higher tariff rate. 4.A tariff can be thought of as a tax on imported goods. 5.Although tariffs on imported steel may lead to job gains for domestic steel workers, they can lead to job losses for domestic auto workers.
Information needed by users of accounting data includes
a. the firm's profitability; b. detailed measures of the firm's performance; c. the firm's outstanding debt; d. the firm's inflow and outflow of cash; e. all of these.
How does training relate to employee development?
a. Training is the same as employee development. b. Training is not a component of employee development. c. Training prepares employees for their future job, while employee development prepares them for their current job. d. Training focusses on overcoming deficiencies they have in performing their current job.