A company that uses accounting methods in preparing its tax returns that differ from the accounting methods used to prepare its financial statements is
A) in violation of the consistency principle
B) not necessarily violating either the income tax laws or generally accepted accounting principles
C) probably guilty of tax evasion
D) in violation of the relevance assumption
B
You might also like to view...
Max Shell borrows money from a bank to finance his clothing business. He signs a demand loan. After 10 year of operating his business and making regular payments on his line of credit, he begins to experience financial difficulty
The bank gets nervous and calls in the loan. Max meets with the bank manager and asks for time to raise the money. The manager says, "Sorry, Max, business is business." Max leaves the bank, returns to the store, and finds a bank-appointed receiver in charge. Is there anything Max can do? A) No. A demand loan means that the bank can demand repayment at any time. B) No. Max would have been better off signing a term loan rather than a demand loan, since he would then have had to the end of the term to come up with the money. C) Yes. The bank did not act in good faith and the courts will apply principles of equity. D) Yes. Even though this was a demand loan, the bank was obliged to give Max a reasonable amount of time to meet the demand. E) Both A and B
The SEC issues ratings on the estimated risk of investing in a particular security
Indicate whether the statement is true or false
Which of the following can be negotiable?
a. A promissory note that states, "Pay to Floyd Burchett $3000 on September 1, 2015." b. A check written on the standard check form that does not state the date it was issued. c. A promissory note from Farmer Douglas to Hainey Seeds, Inc. promising to pay for the seed purchased in the spring with bushels of grain harvested in the fall. d. An oral promise to pay to the order of Justin $500 on demand.
A professor is expected to cover 16 chapters in an operations management text each semester. The class is scheduled to meet for one hour three times a week for 15 weeks
One semester the professor dismisses class 30 minutes early every Monday and Friday and is able to cover only 12 chapters using two boxes of chalk and case of bourbon. What is the professor's labor productivity? A) 0.27 chapters per hour B) 1.25 chapters per week C) 1.06 chapters per week D) 0.4 chapters per hour