The tax consequences of a business activity are generally the same as the tax consequences of an investment activity.

Answer the following statement true (T) or false (F)


False

Business

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If a presentation requires the audience to work together to reach an answer, , the presentation will be ________

A) informational B) persuasive C) instructional D) collaborative E) anecdotal

Business

Firms cannot apply the fair value option to derivatives

Indicate whether the statement is true or false

Business

A toy manufacturer following the hedging principle will generally finance seasonal inventory

build-up prior to the Christmas season with A) selling equipment. B) long-term bonds since this is a recurring financing need. C) trade credit. D) common equity to avoid interest on a recurring annual need.

Business

During August, Boxer Company sells $363,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $13,500 before adjustment. Customers returned merchandise for warranty repairs during the month that used $10,100 in parts for repairs. The entry to record the customer warranty repairs is:

A. Debit Warranty Expense $14,520; credit Estimated Warranty Liability $14,520. B. Debit Estimated Warranty Liability $14,520; credit Parts Inventory $14,520. C. Debit Warranty Expense $10,100; credit Estimated Warranty Liability $10,100. D. Debit Warranty Expense $11,120; credit Estimated Warranty Liability $11,120. E. Debit Estimated Warranty Liability $10,100; credit Parts Inventory $10,100.

Business