The Accounting Degree Review

This is due that a significant portion of long-term debts will be paid next year, which are classified as current liabilities this year. All expirations occurring based on donor-imposed restrictions will be recognized in the same accounting period when such expiration elapsed. Which of the following is treated the same for individuals and corporations? 50,000. Which of the following is a true statement? a. 50,000 dividend to C. Corporations B and C are each entitled to a dividends-received deduction of a. Which of the following is a false statement regarding transactions between corporations and their shareholders? Transactions can be recorded directly to the ledger but the books of original entry are in use because they have the following advantages which the ledger does not have. A small business accounting software solution written on excel spreadsheets that produces all the main requirements with all transactions visible can be an ideal solution for the small businesses with little or no bookkeeping or accounting knowledge and experience. A personal service corporation must use a fiscal year unless it can satisfy IRS requirements that there is a business purpose for a calendar year. 205,000; Deductible expenses of operations: 218,000; Dividends received: 35,000. The dividends were received from a taxable domestic corporation in which T owns 15 percent of the stock (not debt-financed).

In the case of a personal service corporation, any employer-owner that owns any of the corporation’s stock is a related party under certain conditions. A shareholder owning 50 percent of a corporation’s outstanding stock is a related party according to the general rule. Alternative minimum tax (AMT) liability exists only if the corporation’s tentative AMT (reduced by allowable credits) exceeds its regular tax liability for the year. Which of the following statements about the corporate alternative minimum tax is false? Which of the following is not true concerning the obligation of a corporation to make estimated tax payments? Normal waste is estimated before production and is inherent in the nature of the raw material. One-fourth of the estimated tax due is to be paid on each payment date. Corporations A and B are permitted to allocate the use of the lower tax rates in any manner they so elect, provided that both A and B agree to the allocation. S corporations must generally use a calendar year. The amount of gain or loss the JS Corporation must recognize in 2012 is a.

Assuming that the corporation properly elected to deduct/amortize these costs, what is the amount of organization expenses that it should deduct on its tax return for the fiscal year ending June 30, 2012. a. The sale of property at a gain between a corporation and its controlling shareholders is not affected by the related parties rules. The corporation claims an automatic six-month extension of time to file the tax return and to pay the tax due. You can hire a CPA to do that for you and during tax time they will know all about your current situation and help you file your taxes correctly. Many advisers will take your money and claim to be able to help you. Management accountants provide input to help managers formulate strategy. A strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. The managers at Vanguard follow a cost leadership strategy.

When managers generate and experiment with ideas related to new products, services or processes. Fort Wayne, Indiana About Blog At Summit CPA, we offer virtual CFO and 401k audit services to small and medium-size businesses who aren’t ready to hire a full-time CFO but can benefit from strong, experience-driven processes. For example, a bank teller who embezzles money and makes “a killing” by investing it in mutual funds may be ordered to account for all the money taken and the earnings made from it. Two or more corporations owned by five or fewer noncorporate shareholders, who collectively own more than 50 percent of the stock of each corporation, would best describe a. Generally, unless each payment is for 25 percent or more of the tax (after credits) shown on Form 1120, an underpayment penalty will be imposed. A decision has to be made as to which entries in the expense accounts relate to the extraordinary event such as a natural disaster and should be shown separately under the extraordinary items heading. Maximize cost to attract and retain consumers with brand items.