(0.5 points) The Internal Revenue Service is responsible for collecting taxes and interpretation and enforcement of the Internal Revenue Code. 3. What is the capital gains tax? (0.5 points) The capital gains tax is a tax that applies to investments and other personal property. 4.
In Alexa's situation, all expenses incurred in this year is 28,900 while the passive income is only 20,000. Since we are not sure if Alex qualifies as an active participant at this point, none of the passive loss can be deducted again the passive income. 2. Assuming that Alexa's AGI from other sources is $90,000, what effect does the rental activity have on Alexa's AGI?Alexa makes all decisions with respect to the property. The AGI will be reduced by 8,900.
(Points : 5) is increased with a debit is decreased with a credit is not an expense account All of the above 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company: Cash $5,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 What did Cerner Company show as total credits? (Points : 5) $21,500 $21,000 $20,500 $22,000 4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5) sales under $1,000,000 no accountants on staff insignificant receivables and payables all sales and purchases on account 5.
Week 8 : Final Week - Final Exam Page 1 1. (TCO C) Which of the following characteristics do intangible assets possess? (Points : 5) Physical existence Claim to a specific amount of cash in the future Long-lived Held for resale 2. (TCO C) The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be (Points : 5) charged off in the current period. amortized over the legal life of the purchased patent.
If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost. Adversely, if the stock is retired, Alcoa
This helps the auditor by preventing those with minimal financial risk rushing to the courts to press a suit and having the advantage over the larger entity. 4-17 1) Identify how the Sarbanes-Oxley Act of 2002 changed the audit environment for auditors. The Sarbanes-Oxley Act of 2002 changed the audit environment for auditors by reducing the amount of services an auditor can offer a client. The SOX makes it illegal to perform the following services for an audit client: * Bookkeeping or recordkeeping services * Creation or use of financial information systems * Appraisal services * Actuarial services * Internal audit outsourcing services * Human resources or management tasks * Investment advising or investment banking services * Legal services * Expert