Based on its income for the month, Reel Company estimates that federal income taxes for the month of May will be $11,000 . What is the effect of the adjustment on the financial statements?
a. Increase retained earnings
b. Increase income taxes expense
c. Increase net income
d. Decrease income taxes payable
b
You might also like to view...
XBRL GL, or XBRL Global Ledger Taxonomy, is different from XBRL US GAAP because it facilitates:
A. Efficient communication between the firm and financial analysts. B. Efficient communication between the firm and its customers. C. Efficient communication within a firm. D. Efficient communication between the firm and its suppliers.
What is the product life cycle? Describe the conditions that products encounter at each stage of the cycle. How can a product life cycle be expanded?
What will be an ideal response?
Today is your 30th birthday and you must choose between two retirement options. The first option will provide
you with 10 equal annual payments of $100,000 beginning on your 65th birthday. The second option will provide you with one payment of $1,000,000 on your 70th birthday. If the interest rate is 6 percent per year and you are assured of living to at least 80 years of age, which option is better?
What do the majority of rail movements involve?
a. manufactured goods b. bulk liquids and coal c. low value, heavy commodities d. consumer goods