The FASB decided that the allocation of income taxes paid to operating, financing, and investing activities would be complex and arbitrary, and relied on which one of the following justifications for its decision?
A. Materiality constraint
B. Cost-benefit constraint
C. Historical cost
D. Revenue recognition principle
Answer: B
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Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the inventory purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $70,000. October November December Budgeted cost of goods sold60,000 40,000 50,000 Plus: Desired ending inventory6,000 ? ? Inventory needed66,000 ? ? Less: Beginning inventory9,000 ? ? Required purchase (on account)57,000 ? ? What would be the required purchases (on account) for December?
A. $53,000 B. $47,000 C. $50,000 D. $60,500
On May 31, a company had a balance in its accounts receivable of $103,200. Prepare journal entries to record the following transactions for June. Assume the company uses a perpetual inventory system. June 2Sold merchandise on account, $12,000. The cost of the merchandise was $7,200.June 8Sold $15,000 worth of accounts receivable to First Bank. First Bank charged a 4% factoring fee.June 20Borrowed $30,000 cash from Second National Bank, pledging $31,500 worth of accounts receivable as collateral for the loan.
What will be an ideal response?
An annuity is a series of unequal dollar payments coming at the end of each time period for a specified number of time periods
Indicate whether this statement is true or false.
Jack purchases land which he plans on developing as a golf course. The land costs $20,000,000 and the cost of clearing the land, earthmoving, constructing hazards, bunkers and greens, and installing irrigation systems will cost an additional $6,000,000. What tax issues should Jack consider?
What will be an ideal response?