Homework Answers
| In cash basis accounting, for tax purposes Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid |
| Income is said to be constructively received when it is deposited and made available to the taxpayer’s account without any restrictions. |
| A taxpayer can deduct expenses when they are paid regardless of the year they relate to. |
| Option B is correct |
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$11,340 Question 2 1 pts In cash basis accounting, for tax purposes: Income is recognized when...
2 of 10 (4 complete) i Contract information ccep mot pa forma 1,570,000 Contract price achy any jo 2015 128,...
2 of 10 (4 complete) i Contract information ccep mot pa forma 1,570,000 Contract price achy any jo 2015 128,100 $ 2016 850,000 128,100 978,100 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs Progress billings made during the year Cash collections during the year 128,100 $ 512,400 640,500 $ 930,000 $ 785,000 $ 978,100 640,000 785,000 per in Print Done Done Question...
QUESTION 1 Tom, age 13, is claimed as a dependent by his parents. Tom has unearned...
QUESTION 1 Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Tom’s 2019 income tax liability? a. None of these b. $260 c. $370 d. $0 e. $459 QUESTION 2 The 3.8 percent ACA Medicare tax does not apply to: a. Wages b. Interest c. Capital gains...
Question 17 4.77 pts If the total of the Income Statement Credit column exceeds the total...
Question 17 4.77 pts If the total of the Income Statement Credit column exceeds the total of the Debit column, the business has earned Question 18 4.77 pts In the basis of accounting, revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is received or paid. Question 19 4.77 pts In the basis of accounting, revenues are recorded only when cash is received and expenses are recorded only when cash is paid. Question 20...
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits...
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits in an accurate measurement of income because it records revenues when earned, regardless of when the cash is recerved and matches the expenses incurred to produce that revenue by recording expenses on the last day of the accounting perio s more complete reports on the last day of the accounting period when cash is received when earned, regardless of when the cash is received,...
#9 of 20 Which of the following statements regarding the cash basis of accounting is true?...
#9 of 20 Which of the following statements regarding the cash basis of accounting is true? O a. Expenses are reported in the same period as the revenues to which they relate. O b. The cash basis of accounting is used by most large businesses to provide accurate financial statements for users. O c. Revenues are reported in the period in which cash is received, and expenses are reported when cash is paid out. O d. Revenues are reported in...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS) 1. Standard deduction for tax purposes are:...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS) 1. Standard deduction for tax purposes are: a. Deductions from AGI (Adjusted Gross Income) b. Made up of basic and additional deductions Permitted only for those using form 1040EZ or 1040A c. d. All of the above e. Only a and b above. 2. T, F. Exemptions unlike standard deductions are not deducted from AGI 3. T, F. Exemptions provide taxpayers with their biggest tax deductions 4. T, F. Any person filing a...
Under the accrual basis of accounting, the expense for uncollectible accounts is only recorded when specific...
Under the accrual basis of accounting, the expense for uncollectible accounts is only recorded when specific accounts are actually written off. true or false When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid. true or false Under the accrual basis of accounting, only income that has been earned appears on the income statement. true or false
1) If a company is using accrual basis accounting, when should it record revenue? A) when...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
part b: Calculate the first year’s net income under the cash basis of accounting. Exercise 4-2...
part b: Calculate the first
year’s net income under the cash basis of accounting.
Exercise 4-2 (Part Level Submission) In its first year of operations, Athabasca Corp. earned $53,000 in service revenue. Of that amount, $8,400 was on account and the remainder, $44,600, was collected in cash from customers. The company incurred various expenses totalling $32,200, of which $28,700 was paid in cash. At year end, $3,500 was still owing on account. In addition, Athabasca prepaid $2,000 for insurance coverage...
The accrual basis of accounting recognizes expenses when cash is paid. True or False? Question 13...
The accrual basis of accounting recognizes expenses when cash is
paid. True or False?
Question 13 2 pts The accrual basis of accounting recognizes expenses when cash is paid. O True O False
2 of 10 (4 complete) i Contract information ccep mot pa forma 1,570,000 Contract price achy any jo 2015 128,100 $ 2016 850,000 128,100 978,100 Actual construction costs incurred during the year Construction costs incurred in prior years Cumulative construction costs incurred to date Estimated costs to complete Estimated total costs Progress billings made during the year Cash collections during the year 128,100 $ 512,400 640,500 $ 930,000 $ 785,000 $ 978,100 640,000 785,000 per in Print Done Done Question...
Question 17 4.77 pts If the total of the Income Statement Credit column exceeds the total of the Debit column, the business has earned Question 18 4.77 pts In the basis of accounting, revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is received or paid. Question 19 4.77 pts In the basis of accounting, revenues are recorded only when cash is received and expenses are recorded only when cash is paid. Question 20...
Requirement 3. State why accrual accounting results in an accurate measurement of income Accrual accounting resuits in an accurate measurement of income because it records revenues when earned, regardless of when the cash is recerved and matches the expenses incurred to produce that revenue by recording expenses on the last day of the accounting perio s more complete reports on the last day of the accounting period when cash is received when earned, regardless of when the cash is received,...
#9 of 20 Which of the following statements regarding the cash basis of accounting is true? O a. Expenses are reported in the same period as the revenues to which they relate. O b. The cash basis of accounting is used by most large businesses to provide accurate financial statements for users. O c. Revenues are reported in the period in which cash is received, and expenses are reported when cash is paid out. O d. Revenues are reported in...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS) 1. Standard deduction for tax purposes are: a. Deductions from AGI (Adjusted Gross Income) b. Made up of basic and additional deductions Permitted only for those using form 1040EZ or 1040A c. d. All of the above e. Only a and b above. 2. T, F. Exemptions unlike standard deductions are not deducted from AGI 3. T, F. Exemptions provide taxpayers with their biggest tax deductions 4. T, F. Any person filing a...
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
part b: Calculate the first
year’s net income under the cash basis of accounting.
Exercise 4-2 (Part Level Submission) In its first year of operations, Athabasca Corp. earned $53,000 in service revenue. Of that amount, $8,400 was on account and the remainder, $44,600, was collected in cash from customers. The company incurred various expenses totalling $32,200, of which $28,700 was paid in cash. At year end, $3,500 was still owing on account. In addition, Athabasca prepaid $2,000 for insurance coverage...
The accrual basis of accounting recognizes expenses when cash is
paid. True or False?
Question 13 2 pts The accrual basis of accounting recognizes expenses when cash is paid. O True O False
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