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
You might also like to view...
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
Firms cannot apply the fair value option to derivatives
Indicate whether the statement is true or false
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.
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.