counting reports. 2. Benjamin Company includes in its accounting records only transaction data that can be expressed in terms of money. 3. Josh Burke, owner of Josh’s MovieHouse, records his personal living costs as expenses of the MovieHouse. Instructions For each of the three situations, say if the accounting method is current or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which

counting reports. 2. Benjamin Company includes in its accounting records only transaction data that can be expressed in terms of money. 3. Josh Burke, owner of Josh’s MovieHouse, records his personal living costs as expenses of the MovieHouse. Instructions For each of the three situations, say if the accounting method is current or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 38P

See similar textbooks

Similar questions

Case I. The Property Corporation requires funds for its inventory, payment of salaries and wages, payment of utilities and other monthly operating costs. a). You are to suggest which financial market the company may approach and why? b). Discuss the financial instruments to raise in this requirement.
For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A) Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000.B)A company records the expenses incurred to generate the revenues reported. C)When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. *
Which of the following options regarding income earned will not be classified as revenue? Select one: a. Profit on sale of vehicle which was used as a delivery vehicle by the entity. b. Commission income earned on each property sold by a sales agent. c. Sale of vehicle that was held primarily for the purpose of being traded. d. Rental income earned by a lessor on commercial buildings leased to a lessee.
Sometimes, for the fixed assets of certain businesses, the balance in Accumulated Depreciation is equal to the cost of the asset. a. Can one record additional depreciation on the assets if the assets are still useful to the business? b. Why? Explain: c. Also, when can such a business make an entry to remove the cost and accumulated depreciation of the fixed assets from the account?
What is the name of the accounting concept or principle that determines the amount initially entered into the accounting records for purchases of assets--what you actually pay for the asset or what it actually costs? Group of answer choices cost concept asset concept business entity concept proprietorship concept
Which of the following statements are TRUE? a. The reason for including a treatment of depreciation in this book is to allow you to develop a reasonably accurate report to the owners of a business regarding its value at any given point in time. b. Depreciation spreads investment costs over the useful life of equipment purchased. c. Depreciation allowances can be treated as expenses because they are cash flows. d. Depreciation affects income taxes, which are cash flows.
Identify the letter for the principle or assumption from A through F in the blank space next to each numberedsituation that it best explains or justifies.A. General accounting principleB. Measurement (cost) principleC. Business entity assumptionD. Revenue recognition principleE. Expense recognition (matching) principleF. Going-concern assumption If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $51,000.
For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset. (A) Is it permissible to record additional depreciation on the assets if they are still useful to the business? Explain. (B) When should an entry be made to remove the cost and the accumulated depreciation from the accounts? Please use at least 150 words to explain to avoid getting a bad grade.
Questions: 1. What is the total value of the asset that Ms. QWE contribute to the business? 2. Determine the value of Ms. QWE's ownership in the business.
Depreciation is considered as accounting policy and operational expense for the accounting period. The value to be included in the financial statement is calculated based on the decision of the Board. (a) You are re quire d to: (i) Explain the difference between capital expenditure and revenue expenditure, and how each type of expenditure will affect the financial statements of a business. (ii) Explain why it is important to distinguish between capital expenditure and revenue expenditure, and briefly explain the accounting treatment of each type of expenditure. (iii) Under what circumstances will you consider the reducing balance method as the most appropriate method of calculating depreciation? (iv) Does Depreciation decrease cash in business? Explain your answer.
I know in order to find adjustments to net income using the indirect method you begin with the net income and add your depreciation, and amortization of patents. Then you subtract the Gain of sale on the land, then you'll have your net income.. However, when I compute this problem it still says I am incorrect.
Choices are: Net income, Depreciation expense, purchase of equipment for cash, proceeds from disposal of plant assets, for interest, loss on disposal of vehicles, for land, customers, for income taxes, dividend revenues, to suppliers for merchandise, for salaries and wages, for operating expenses. I am unsure where I am going wrong here.