When they are net of taxes, prior period adjustments always increase the value of Retained Earnings * True False

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: :-What are two estimates that impact the Amount of reported income significantly c How? When…

A: 1) Income statement is one of the three Financial statement on that stakeholder rely on . For…

Q: What is the effect of a rise in the income tax on interest income? A rise in the income tax on…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Q: Fill in the blanks: An increase in accrued income during the particular year is ________________the…

A: Income:   It is a form of earnings for the company resulting from business activities.

Q: computing the cost of debt, a tax adjustment is required t arrive at after-tax cost of debt. Why is…

A: Cost of Equity: It is the rate of return the company pays to the investor for investing in the…

Q: How much in taxes would the target firmhave to pay on any gains it realizes?

A: Corporate taxes are calculated on the gross profits after the expenses have been deducted from the…

Q: profit after taxes will be produced

A: A rise in sales will cause a proportional rise in the variable costs. But, the fixed costs will…

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: 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: 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: 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: hort term capital gains taxes are higher than long term capital gains taxes. How does the different…

A: At the point when you sell a capital resource for more than you paid for it, the outcome is a…

Q: Income Taxes Payable or refundable + Changes in deferred income taxes = total income tax expense or…

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

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 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: when multiplying companys tax rate with any firms accounting income , the result is always different…

A: The accounting income of the firm is always computed as per accrual method of accounting. The income…

Q: Sizable tax returns that result from automatic prepayment of taxes should (A) increase tax fraud;…

A: Tax return: It can be defined as a document that is filed with the tax authority and shows the total…

Q: The tax rate paid on your last dollar of income is called the average tax rate. a. true b. false

A: Average tax rate is calculated as the total tax liability divided by taxable income, whereas…

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: Interperiod equity refers to the concept that current-year revenues are sufficient to pay for…

A: Interperiod equity is the concept found in Generally Accepted Accounting Principles.

Q: Identify the term being referred to: The percentage of dividends to earnings after taxes.

A: Answer -  Formula for Dividend Payout Ratio = Total Dividend / Earnings after tax *100. The dividend…

Q: Choose a,b,c,d,e for the following: Question 1 - Debt x Interest Rate x Tax Rate: a. gives us the…

A: The amount of interest is computed:

Q: Using tax depreciation for tax purposes and straight-line depreciation for financial reporting, do…

A: Deferred tax liability is the amount of tax that is due for the period but not been paid. It arises…

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: EBIT is equivalent to profits after taxes. true or false?

A: EBIT is the earnings before interest and tax.

Q: Using the adjusted present value model, under what assumptionsare the MM (with corporate taxes)…

A: MM model shows that company’s market value is computed as a PV of company’s future earnings which is…

Q: Which of the following has the greatest effect of reducing tax payable through the acceleration of…

A: Bad Debt refers to the value of those uncollected sum of money or a form of expense which is owned…

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: What is NOPAT (net operating profit after taxes)?

A: The income generated by a business in the course of normal operations, after deducting the direct…

Q: The "income tax benefit" account reduces the current tax expense for the year and is a deduction…

A: Income tax: It implies to a financial levy that is imposed or charged on the taxable income of the…

Q: If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L?

A: Bonus is the amount receive in addition to salary for additional efforts put in by the partner. In…

Q: Assuming no changes in other variables, which of the following would decrease ROA? A. A decrease in…

A: As given in the question that the variable cost remains the same, there is no change in this. ROA…

Q: Of the following, the most likely effect of an increase in income tax rates would be to: A)…

A: income tax rate is the percentage of income that is paid to the government.

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: Which of the following are true about Deferred Tax Liabilities? (check all that apply) In the…

A: Deferred tax liabilities and deferred tax assets arise when there are timing differences between…

Q: Calculate net income (after tax) to the net sales.

A: The question is related to the Ratio Analysis. The Net Income (after tax) to Net Sales is the Net…

Q: Nonordinary items resulting in income or loss a. include unusual but not infrequent gains. b.…

A: a. include unusual but not infrequent gains.

Q: What will be the Effect of Interest Rates on the After Tax IRR on Equity?

A: "Financial leverage is a double edged sword". If the company is not managing its financial resources…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.