All the following are necessary for an ideally insurable loss exposure except:
A) large number of homogeneous exposures
B) losses must be accidental and unintentional from the point of view of the insured
C) losses must be measurable
D) low probability of loss
D
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At the end of its first year of operations on December 31, 2016, the Brandon Company reported taxable income of $100,000 and had a pretax financial loss of $60,000. Differences between taxable income and pretax financial income included interest revenue received from municipal obligations of $20,000 and warranty expense accruals of $180,000. Warranty expenses of $90,000 are expected to be paid in
2017 and $110,000 in 2018. The enacted income tax rates for 2016, 2017, and 2018 are 30%, 35%, and 40%, respectively. The journal entry to record income tax expense on December 31, 2016, would be A) Deferred Tax Asset 75,500Income Taxes Payable 30,000Income Tax Benefits fromOperating Loss Carryforward 45,500 B) Deferred Tax Asset 30,000Income Taxes Payable 30,000 C) Income Tax Expense 30,000Income Taxes Payable 30,000 D) Deferred Tax Asset 105,500Income Taxes Payable 30,000Income Tax Benefit fromOperating Loss Carryforward 75,500
One benefit of third party intervention is that it can create breathing space or a cooling-off period.
Answer the following statement true (T) or false (F)
The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations. Service firms will likely show a small amount of
a. subtraction from net income for capital expenditures. b. addback to net income for capital expenditures. c. subtraction from net income for depreciation expense. d. addback to net income for depreciation expense. e. addback to retained earnings for depreciation expense.
A problem is the difference between the current state and where you want to be.
Answer the following statement true (T) or false (F)