How does unearned revenue arise? Why can it be classifiedproperly as a current liability? Give several examplesof business activities that result in unearned revenues.

Q: Is all accounting income taxable? is there any accounting income that is not taxable? Please Explain…

A: Accounting income is the profit left over after all applicable expenses have been deducted from…

Q: Which of the following creates temporary difference between financial and taxable income? * Interest…

A: Temporary differences are differences between pretax book income and taxable income that will…

Q: naked debenture

A: Debentures which are not secured by specific assets is known as Naked debentures.

Q: In accordance with PAS 1, which of the following expenses need not be presented separately in the…

A: Solution: In addition to items required by other PAS, the profit or loss section or the statement of…

Q: How do companies account for long-term contracts that qualify for revenue recognition over time?

A: The companies use the following two methods to record the long term contract when it turns out to be…

Q: Classify the following items that may cause discrepancy between accounting profit and taxable…

A: 1. Taxable temporary difference because tax will be charged on the insurance premium in future when…

Q: What is the authoritative literature addressing revenue recognition when right of return exists?

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: The courts have determined that to qualify as a trade or business, an activity must: A.Be operated…

A: The courts have determined that to qualify as a trade or business, an activity must be operated with…

Q: It is legal and ethical to use one method of deprecia method on the company's financial statements.

A: True, it is legal and ethical to use one method of depreciation for taxes and another method on the…

Q: Which one of the following category unearned revenue belong to? a. Limited liability b. Current…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: contingency that need not be disclosed in the financial statements

A: Contingency is the probable obligation or receivable that may arise in future which depends on the…

Q: Why is Unearned Revenue considered a liability?

A: Unearned revenue is the revenue that has not been earned yet but payment has been received from the…

Q: Which of the following is not deductible from business income? Group of answer choices Casual…

A: Business income is earned revenue that includes all money generated by an entity's operations.…

Q: 6. A liability is recognized in the statement of comprehensive income when it is probable that an…

A: As per IASC framework, the liability is recognized in the financial statement when two conditions…

Q: How are deferred taxes calculated? What determines if the company has a deferred asset or a deferred…

A: Deferred tax is a fictitious asset or liability that reflects company income taxation on a premise…

Q: The Internal Revenue Code authorizes deductions for trade or business activities if the expenditure…

A: The statement is True : The Internal Revenue Code authorizes deductions for trade or business…

Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…

A:

Q: Which of the following circumstances does not give rise to a taxable temporary difference? O The…

A: A taxable temporary difference is a temporary difference that will lead to taxable amounts in the…

Q: What is the difference between a principal and an agent for determining the amount of revenue to…

A:

Q: What are the possible treatments for tax purposes of anet operating loss? What are the circumstances…

A: Net operating loss: When the level of income is less than the expenses for a given or a considered…

Q: TRUE OR FALSE Illegal expenses

A: Illegal expenses incurred in operating a legitimate business are deductible from gross income…

Q: How Limited liability is different to unlimited liability? Briefly explain with an example of…

A: Limited liability is the type of organization where loss to the corporation will not exceed amount…

Q: Which of the following is incorrect? A.To qualify as a liability, an obligation must be payable in…

A: As per Generally Accepted Accounting Principles, liabilities refer to a present obligation that…

Q: Classify the following items that may cause discrepancy between accounting profit and taxable…

A: Taxable income is that the portion of your gross income wont to calculate what proportion tax you…

Q: Why in franchise arrangements may it be improper torecognize the entire franchise fee as revenue at…

A: Franchisor:   It is an organization or a sole proprietary that provides a franchise for the sale of…

Q: True (t) or False (f) ______ The LIFO conformity rule requires that if a company uses LIFO for tax…

A: The LIFO cost flow assumption can be used to reduce the taxable income by business.

Q: What must a contract include for the contract to exist for purposes of revenue recognition?

A: Step 1: An accounting principle that has outlined certain conditions for the treatment of the…

Q: Generally accepted accounting principles usually require the use of accrual accounting to “fairly…

A: Net income:   Net income is the amount which is computed by summing up all the revenues received…

Q: Classify the following items that may cause discrepancy between accounting profit and taxable…

A: 1. Collections of rental in excess of rent revenue reported during the period is a Taxable temporary…

Q: How is a business activity distinguished from an investment activity? why is this distinction…

A:

Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Which of the following is not a liability that has priority in liquidation? Group of answer choices…

A: Liquidation: It is a process to end a business and distribute its assets to complainants. It is a…

Q: When a business calculates taxable income from gross income, which ofthe following is true? a.…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: If an entity has elected to use the fair value option for a financial liability; a. It is measured…

A: Liabilities: Liabilities are the obligations of an organization that an organization must pay in…

Q: Which of the following causes a temporary difference between taxable and pretax accounting income?…

A: Please find the answer to the above questions below:

Q: What are the two particular business structures have evolved in response to liability issues and tax…

A: In response to the issue of liability and tax treatments the two business structures that were…

Q: Is it neccessary  for a business to use the same method of computing depriciation  for all classes…

A: Meaning of depreciation:Depreciation is nothing but a decrease in the asset value due to wear and…