Assuming no changes in other variables, which of the following would decrease ROA? A. A decrease in the effective tax rate B. A decrease in interest expense C. An increase in average assets

Q: tax allocation

A: Correct Answer 1 :- D The purpose is to relate the income tax expense to the items which affect the…

Q: Total comprehensive income is: Select one alternative: profit or loss after tax other…

A: Solution: Total comprehensive income is "profit or loss after tax + other comprehensive income after…

Q: Future Tax Deductions A. Result in deferred tax liabilities. B.Rresult in deferred tax assets.…

A: Future tax deductions are the tax expenses that are to be deducted in the future period but were due…

Q: A Higher business tax will (Please select the best choice) (A) increase inflation (B) decrease…

A: Inflation refers to the rise in price levels of products or services. It generally happens if the…

Q: Explain very briefly what you understand from income effect and substitution effects of change in…

A: The effect of income tax rates in terms of income effect and substitution effect is explained as…

Q: Answer in points: Question. Difference between average and marginal tax rates

A: Average rate of tax is the amount of taxes paid on total income on average. For example, a business…

Q: Deferred tax expense or benefit is the net change in DTL and DTA for the period. If the increase in…

A: The deferred tax asset or even the deferred tax liabilities are caused due to the variations in the…

Q: 4. What is the net effect of the above errors in the 2021 net income? (If understated, put a…

A: Income statement shows the net income or loss that is calculated by deducting the expenses from the…

Q: A deferred tax liability/asset is computed using the? either current or expected tax laws,…

A: A deferred tax liability/asset is computed using the:: either current or expected tax laws,…

Q: The marginal tax rate is equal to Question 11 options:the change in the tax payment divided by the…

A: Marginal tax is the tax which you pay on an additional amount of incomes. This marginal tax is very…

Q: True or False An increase in the capital gains tax rate decreases the total amount of unrealized…

A: capital gains:- A capital gain is an increase in the value of a capital asset that is realized when…

Q: Using the adjusted present value model, under what assumptionsare the MM (no taxes) results correct?

A: The Modigliani and miller approach can be used for the dividend decision. This approach is an…

Q: 25. Which of the following is a correct formula to compute for total income tax expense? *   a.…

A: >Current Income tax is the combination of:--Income tax payable, which is the current year tax,…

Q: G.) An increase in the Deferred Tax Liability account on the balance sheet is recorded by a…

A: G, An increase in the Deferred Tax Liability account on the balance sheet is recorded by a debit to…

Q: A deductible temporary difference leads to the payment of:   Select one: A. less tax in the…

A: The question is related to Taxes on Income.There are two types of deferred tax- (i) Deferred tax…

Q: When they are net of taxes, prior period adjustments always increase the value of Retained Earnings…

A: Prior Period Adjustments: Correction of an error in the financial statements that were reported in…

Q: Income tax expense reported on a company’s income statement equals taxes payable, plusthe net…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: A reduction in the statutory tax rate would most likely benefi t the company’s:A . income statement…

A: A balance sheet is a financial statement that offers a framework for estimating the return rates and…

Q: For each statement in parts a to d, give a short answer or indicate True orFalse. a. Which of the…

A: Cash flows are the cash receipts and the payment the organization receives the given period of time.…

Q: If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is…

A: If the increase in deferred tax asset is Higher than the increase in deferred tax liability, there…

Q: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…

A: Temporary differences are differences between book income and taxable income of the business. These…

Q: taxation policy? The average tax rate and the marginal tax rate are the same under the Select one: O…

A: Regressive Tax Policy: This form of taxation is progressive, meaning that the tax rate decreases as…

Q: Of the If taxable income is The tax is this A tax rate schedule is But not Plus given in the table.…

A: US Taxation - The USA has separate federal, local and state governments with taxes imposed at each…

Q: Which of the following decreases the benefit of accelerating tax deductions? Decreasing tax rates…

A: The following thing which decrease the benefit of accelerating tax deductions According to the…

Q: After tax cost of interest deals with the fact that interest is deductible for tax purposes.…

A: Interest expenses are the expenses which are related to borrowings raised by the company. The…

Q: Identify the correct formula about Income from continuing operation. Net profit before tax - sales…

A: Income from Continuing operation is the Oprating profit is the profit before tax

Q: How does an increase in the income tax rate affect the breakeven point?

A: A break-even sale is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Q: Please in calculating return on year end capital employed = profit before tax / capital employed.…

A: Return on capital employed (ROCE): It is the type of profitability ratio that tells how well the…

Q: What is the compressed adjusted present value(APV) model, and how does this differ from…

A: The sum of the net present value and the financial benefits calculated by other methods of…

Q: Which of the following is NOT a reason why timing is significant in tax? Group of answer choices…

A: Tax: When any assesse is earned the income from any sources of income which are mentioned in the tax…

Q: Which sales tax and tip would be equivalent to the given increase?

A: Particulars Option A Option B Row 1 Row 2 Row 3 Row 1 Row 2 Row 3 Bill Amount 100 100 100 100…

Q: Which of the following formulas can be used to represent targeted pretax profit, πB, as a function…

A: option 1 is correct  πB = πA/(1 - t)   πB = Pretax target profit   πA=Post tax profit  t=Tax rate

Q: The following are examples of non-adjusting events after the reporting period that would generally…

A: The determination after the reporting period of the amount of profit sharing or bonus payments, is…

Q: What is the real return?   Multiple Choice   The after-tax return on assets.   The pre-tax return…

A: Rate of return is the percentage of profit that is earned on an investment.

Q: To minimize dead weight loss resulting from taxation, A.tax rates should increase in times of need…

A: Taxation can be defined as the compulsory charge being implemented by the government or the taxation…

Q: The deferred tax expense is the Select one: a. decrease in balance of deferred tax asset minus…

A: Lets understand the basics. When there is taxable temporary difference between the book profit and…

Q: What is the net effect of the above errors in the 2021 net income? (If understated, put a negative…

A: The accrued expense are those expenses that are due but the payment of these expenses are not made…

Q: Indicate the effect of the transactions listed in the following table on total current assets,…

A: Federal income tax due is paid: Liability due is paid which results cash outflow. Here, liability is…

Q: ustification for the method of determining periodic deferred tax expense is based on the concept of?…

A: Solution: According to matching principal, If income is recognized in particular period, all…

Q: As a company, to minimize the present worth of taxes paid to the federal government, use longest…

A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…

Q: Briefly describe the income impact and substitution effect of changes in income tax rates (you do…

A: The question describes the income impact and substitution effect of changes in income tax rates:

Q: How might a reduction in future tax rates affect deferred tax assets in a way that reduces current…

A:

Q: Refund of value added taxes in the current year which were errone paid in a prior year is generally…

A: Refund of value added tax is not a income. It is just refund of amount which was erroneously paid.

Q: 25. Which of the following is a correct formula to compute for total income tax expense? a. Current…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Which temporary difference would result in a deferred tax asset? a. Tax penalty or surcharge b.…

A: For an assets, the deferred tax asset arise when carrying amount of asset is lower than it's tax…

Q: Valuation allowances reduce deferred tax liabilities to the amount that is more likely than not to…

A: Solution:- A valuation allowance is used for the purpose of offsetting deferred tax asset. The…

Q: When they are net of taxes, prior period adjustments always increase the value of Retained Earnings…

A: The term 'prior period adjustments' described as any revenue or expenditures that occur in the…