Which of the following is not part of the balance sheet approach when computing income tax expense?
a. Identifying at each balance sheet date all differences between the book basis of assets, liabilities, and tax loss carryforwards
b. Eliminating permanent differences between book and tax basis.
c. Eliminating deferred tax assets.
d. Assessing the likelihood that the firm will realize the benefits of deferred tax assets in
the future.
C
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On January 1, 2016, Stacie signed a lease agreement with Amy. Amy will use the equipment and make ten annual payments of $25,000 beginning December 31, 2016. The lease is considered to be a capital lease. When reading the Amy income statement, you would expect to find which of the following accounts?
A) Rent Revenue B) Interest Revenue C) Rental Expense D) Interest Expense
The installment method of recognizing revenue
a. should be used only in cases in which no reasonable basis exists for estimating the collectibility of receivables. b. is not a generally accepted accounting principle under any circumstances. c. should be used for book purposes only if it is used for tax purposes. d. is an acceptable alternative accounting principle for a firm that makes installment sales.
Which of the following is used to identify fake responses to online questionnaires?
A. netnography B. cross-browser digital fingerprinting C. eye tracking technology D. unobtrusive measures E. intercept research
(CMA adapted, Jun 90 #20) Regarding the data for Ramer Company and Matson Company, the attitudes of both Ramer and Matson concerning risk are best explained by the
a. current ratio, accounts receivable turnover, and inventory turnover. b. return on investment and dividend payout ratio. c. current ratio and earnings per share. d. debt-equity ratio and interest coverage ratio. e. none of the above.