Explain the difference between temporary and permanent accounts.
What will be an ideal response?
Temporary, or nominal, accounts accumulate data related to one accounting period.
They include all income statement accounts, dividends, and Income Summary. Temporary
accounts are closed at the end of each accounting period. Permanent, or real, accounts, on the
other hand, report on activities related to one or more future accounting periods. They carry their
balances to the next period. All balance sheet accounts are permanent accounts.
You might also like to view...
Loon, Inc. reported taxable income of $600,000 in 20X3 and paid federal income taxes of $202,000. Not included in the company's computation of taxable income is tax-exempt interest of $30,000, disallowed meals and entertainment expenses of $15,000, and disallowed expenses related to the tax-exempt income of $4,000. Loon deducted depreciation of $200,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $80,000. Compute the company's current E&P for 20X3.
What will be an ideal response?
Gibson Valves produces cast bronze valves on an assembly line, currently producing 1600 valves each 8-hour shift. If the productivity is increased by 10%, it would then be:
A) 180 valves/hr. B) 200 valves/hr. C) 220 valves/hr. D) 880 valves/hr. E) 1760 valves/hr.
If we wish to ensure that decision variable values in a linear program are integers rather than fractions, the generally accepted practice is to round the solutions to the nearest integer values
Indicate whether the statement is true or false
Chris just landed her dream job but realizes that her college wardrobe is not going to work for her new professional position. In this situation, Chris has a(n) ________.
A. benefit B. need C. value D. exchange E. utility