Transfers between governmental and business type activities are eliminated and do not appear on the government-wide Statement of Activities. C. In the government-wide Statement of Activities, special items are those items that are both unusual, infrequent, and are not under the control of management. D. Taxes levied for specific functions may be reported as program revenue. 6. Which of the following choices regarding the proprietary fund financial statements is true?
Financial Management, Principles and Applications (12 ed.). : Pearson EDU. | Efficient market | A theory that implies that it is impossible to outperformed. In turn investors cannot buy under or over inflated stocks. | Investipedia.com | Primary versus secondary market | A Primary Market is securities that are created or brand new whereas a secondary market
(A) The authoritative literature that addresses the disclosure of information about capital structure is FAS 129, titled “Disclosure of Information about Capital Structure, SFAS No. 129” which was issued in February 1997. The FAS is related to Codification 505-10-50. (B) Definitions (Codification 505-10-20) (1) Securities – the evidence of debt or ownership or a related right. It includes options and warrants as well as debt and stock.
Green’s gambling activities do not qualify as a trade or business, can he deduct his gambling-related travel and lodging expenses against his gambling winnings? Applicable Case Law, Code & Regulations Per Section 165(d) of the Internal Revenue Code (IRC), a taxpayer may deduct their gambling losses to the extent of their gambling winnings. However, Section 262 of the IRC indicates, “…no deduction shall be allowed for personal, living, or family expenses.” In ruling on Stanley B. and Rose M. Whitten v. Commission of Internal Revenue, the US Tax Court has stipulated that travel and lodging expenses are not considered losses and therefore cannot be used as a deduction. Conclusion Given the current tax regulations and case law, travel and lodging expenses associated to Dr. Green’s gambling activities cannot be categorized as a loss. The Tax Court clearly established in Stanley B. and Rose M. Whitten v. Commission of Internal Revenue the difference between gambling losses and travel and lodging expenses in the closing of the judgment wherein they stated there is no need, “…to eliminate the distinction between wagering losses, i.e., the amount of wagers or bets lost on wagering transactions, and expenses related thereto, e.g., expenses for transportation, meals, and lodging incurred to engage in wagering transactions… Unlike a wager or bet, petitioner incurred the expenses in question in exchange for specific goods and services, such as transportation,
(TCO D) Liabilities are (Points : 5) any accounts having credit balances after closing entries are made. deferred credits that are recognized and measured in conformity with generally accepted accounting principles. obligations to transfer ownership shares to other entities in the future. obligations arising from past transactions and payable in assets or services in the future. 5.
 http://www.irs.gov/businesses/small/article/0,,id=146335,00.html It is important to determine if the taxpayer martially participates because this classifies the income as active or passive. Passive activity losses are non-deductable from active and portfolio income. This is why it is important to determine if the taxpayer martially participates in the business activity. PROBLEMS: 7-46) The $30,000 loss is considered a passive loss and can only be deducted against passive income, it is therefore suspended and carried forward to future years to offset potential passive income in those years. Mary has no martially participation in the rental activity, therefore the loss is considered
In the stated policy there is no mention of inspection of the process for receiving the delivery. When there is no system in place to ensure that the items ordered are the items received there is no control over the overall costs of materials. To gain this control there should be an inspection done of the materials against the bill of lading provided by the shipper. Once the bill of lading is signed off on, the goods receipt should be given to the accounting department with a copy of the purchase order. This will insure that when the invoice is received by the accounting department they will be able to match the items on the invoice to the items received.