...Taxation is said to be one of the key governance tools of any state including the upholding of Zambians sovereignty. INTRODUCTION The most fundamental function of taxation is raising revenue to pay for governmental expenses and programs. "Taxes are necessary to raise revenue for public goods and infrastructure, as well as to provide other sorts of public services conducive to general welfare and economic growth." Tax revenues pay for the necessary goods – like national defense or a legal system – that an unregulated market cannot provide by itself. More often overlooked is the role of taxation as a catalyst for the development of responsive and accountable government, and for the expansion of state capacity. Taxes, however, do more than simply raise revenue: "Any tax that produces revenue will in some way alter the social and economic order." Taxes that only raise revenue without effecting other changes do not exist in the real world. The concept of fiscal policy captures that link between revenue collection and government spending. More specifically, taxes can be used to increase or decrease inflation and purchasing power, stimulate investment, and prevent harmful concentrations of wealth. Taxation is an underrated tool in the effort to build more capable and responsive states. The role of taxation as a central force in the development of democracy resonates strongly in Anglo-American history. The duty of paying for government legitimizes demands for services...
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...is personally liable Single owner, small retail stores, Partnership – Partnerss – two, partners are personally liable Not a taxpaying entity, income passes through to partners Governement by an agreement Mutual agency – each partner can act on behalf of the entity Unlimited liability Involve risk – limited liability partnerships lessen risk LLC – Members, Members are not personally liable Limited liability Like a partnership, not a taxpaying entity – income flows through to members Popular for of a business due to combination of tax status and limited liability Corporation – Stockholders – usually many, stockholders are personally liable Owned by stockholders Ability to raise large sums of capital Larger than proprietor. And partners. Legally distinct from its owners Double Taxation – corporate income is taxed and shareholders taxed of dividends Elect board of directors Assumptions and Principles Entity assumption – a business is a separate economic unit Continutiy (going-concern) assumption – entity will continue to exist indefinitely Historical cost principle – assets recorded at purchase price Stable monetary unit assumption – stable Interntional Financial Reporting Standards(IFRS) Many countries have own versions of generally accepted accounting principles (GAAP) Reports had to be restated to convert accounting data from one country to another IFRS developed and are used by most countries in the world ...
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...prepare financial statements. | B. | companies use the fiscal year to report financial information. | C. | the economic life of a business can be divided into artificial time periods. | D. | companies record information in the time period in which the events occur. | | 5. | An accounting time period that is one year in length is A. | a calendar year. | B. | a fiscal year. | C. | an interim period. | D. | a quarterly period. | | 6. | The revenue recognition principle dictates that companies recognize revenue in the accounting period in which payment is received. A. | True | B. | False | | 7. | The revenue recognition principle dictates that revenue should be recognized in the accounting records A. | when cash is received. | B. | when performance obligation is satisfied. | C. | at the end of the month. | D. | when it is probable that future economic obligations will be paid and reliable measurement of the amount is possible. | | 8. | The expense recognition principle matches A. | assets with expenses. | B. | expenses with revenues. | C. | assets with liabilities | D. | assets with owner's equity. | | 9. | Which of the following statements about the accrual-basis of accounting...
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...managers. Government regulators. Creditors. 6. Social responsibility: Is a concern for the impact of our actions on society. Is a code that helps in dealing with confidential information. Is required by the SEC. Requires that all businesses conduct social audits. Is limited to large companies. 7. A corporation: Is a business legally separate from its owners. Is controlled by the FASB. Has shareholders who have unlimited liability for the acts of the corporation. Is the same as a limited liability partnership. Is not subject to double taxation 8. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the: Going-concern assumption. Business entity assumption. Objectivity principle. Cost Principle. Monetary unit assumption. 9. Preparation of a trial balance is the first step...
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...(1976) 55-75. 0 North-Holland Publishing Company THE DESIGN OF TAX STRUCTURE: DIRECT VERSUS INDIRECT TAXATION* A.B. ATKINSON University of Essex, Wivenhoe Park, Colchester, England J.E. STIGLITZ Stanford University, Stanford, CA 94305, U.S.A. Revised version received February 1976 1. Introduction The recent literature on optimal taxation may be seen as attempting to clarify the structure of the arguments advanced to support changes in the tax system, tracing the implications of taxes and quantifying (analytically) the trade-offs between the various objectives of tax policy. This literature has examined the optimal structure for particular types of taxation taken in isolation, such as the optimal rates of excise tax and the optimal income tax schedule. Our purpose, on the other hand, is to provide a broader framework and to consider the interaction between different kinds of taxation. To illustrate this, we reexamine the age-old question of direct versus indirect taxation and the relationship of these taxes to the goals of efficiency, vertical equity and horizontal equity. After describing in section 2 the general framework of the analysis, and arguing that any treatment of the choice of tax structures must be centrally concerned with distributional considerations, we begin in section 3 with the extension of the classic Ramsey formula for optimal excise taxation to include vertical equity objectives. This was considered by Diamond and Mirrlees (1971), but the results ...
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...Assignment 2: You Are an Entrepreneur Student: Peter M. Burke Instructor: Dr. Muhammad Sumadi ACC557: Financial Accounting November 18, 2012 Introduction When I was about two years old, my grandfather took me on my first of many fishing trips to a small lake near his house. When his grandchildren visited, we all went along with him. He gave each of us our own special fishing poles, and he taught us everything about fishing, from how to set up our poles to how to bait our hooks, and eventually how to clean fish. As I grew older, our fishing trips grew from hour-long visits to a local lake to trips to the coast, where we would go on deep-sea fishing expeditions. He found relaxation and peace in the hobby, and it became my favorite way to relax as well. I have decided that there is no reason that I cannot turn this hobby that I love into a profitable business, and have decided to become a deep sea fishing guide. Type of business The business that I intend to start is a charter fishing boat business. The name of the business will be Blue Water Fishing Guides. I will operate the business out of Islamorada, Florida, a small town located in the Florida Keys. I will start the business with two fishing boats with a total passenger capacity of 6 guest fishermen per boat in addition to a captain. One boat will operate on a daily basis as long as there are at least two customers, with the second boat being in use if the first boat’s capacity is exceeded. There are...
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...The purpose of this research is to examine the events and issues surrounding the Boston Tea Party. The intention of the research will be to set the overall order of issues that emerged and establish the political context in which the Tea Party would take place, and then to discuss the impact of the incident on the colonies, that would ultimately lead to the Revolutionary War. Understanding the importance of the Boston Tea Party cannot be obtained without an understanding of the issues and events that preceded it. The Party, which occurred in 1773, had its origins several years earlier, in the wake of the French and Indian War, which ended in 1763. In 1766, Parliament passed the Quartering Act, which provided for "billeting, provisioning and discipline of British forces, requiring colonial assemblies to provide barracks and supplies such as candles, fuel, vinegar, beer and salt for the regulars, costs of the Army in America at the 'dictate' of Parliament" (Tuchman 167). Further to this point, the Seven Years' War was over; why the need for such a large standing army in America? This first Quartering Act was, however, obeyed in general terms, and even partly rescinded as to enforcement (182), until other Parliamentary measures pointed up colonists' feeling of oppression. By 1767, the Stamp Act had been passed, and then revoked in the face of an American boycott of covered goods. In 1767, the Townshend Acts legalized import duties on "glass, lead, paints, paper, and tea...
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... auditing, bookkeeping C. Auditing, taxation, management consulting D. Cost accounting, production scheduling, recruiting 3) Communication of economic events is the part of the accounting process that involves A. identifying economic events. B. preparing accounting reports. C. recording and classifying information. D. quantifying transactions into dollars and cents. 4) The body of theory underlying accounting is not based on A. physical laws of nature. B. principles. C. definitions. D. concepts. 5) The private sector organization involved in developing accounting principles is the A. Feasible Accounting Standards Body. B. Financial Accounting Standards Board. C. Financial Auditors' Standards Body. D. Financial Accounting Studies Board. 6) GAAP stands for A. Generally Accepted Auditing Procedures. B. Generally Accepted Auditing Principles. C. Generally Accepted Accounting Procedures. D. Generally Accepted Accounting Principles. 7) Which of the following statements is not true? A. Expenses increase stockholders' equity. B. Expenses decrease stockholders' equity. C. Expenses are a negative factor in the computation of net income. D. Expenses have normal debit balances. 8) All of the financial statements are for a period of time except the A. income statement. B....
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...Summary | These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 1/29/2012 | Time Spent: | 2 h , 45 min , 16 secs | Points Received: | 129 / 150 (86%) | | Question Type: | # Of Questions: | # Correct: | Essay | 7 | N/A | | | Grade Details | 1. | Question : | (TCO D) A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). | | | Student Answer: | | Debits and Credits are pretty simple. Everyone knows the famous saying " what goes up most come down." It's the same theory in that if you have a debit or credit, you will have the a debit or credit on the other end. Think as debit as when you use your debit card, you have money withdrawing from your personal checking; therefore you have money leaving the account. Credit is basically how the lenders give you money to use; therefore you have money coming in to your account. | | Instructor Explanation: | Accounting is based on the double-entry system. This system records the dual effect of each transaction in the appropriate accounts, thus keeping the accounting equation...
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...rather that the readers will be proficient in accounting and finance (aptitude and application). 1.2 Basically comprised of: a) Transactions – buy; sell; borrow; lend b) Transformations – convert raw materials via labour and overhead to finished goods c) Other economic events – natural disasters (flood; fire); economic events (recession; inflation); regulation (exchange rate restrictions; import restrictions; banned substances). This relates to usefully repacking the financial data: a) Classify b) Summarise c) Record Financial reports a) Statement of Comprehensive Income (Financial Performance) b) Statement of Cash Flows c) Statement of Financial Position 1.3 Planning is concerned with providing direction for future activity. Control can be defined as compelling events to conform to the plan. 1.4 The organisations’ mission represents its primary goal or purpose, where it is headed in the longer term. This may be expressed in terms of the range of products or services, the quality and reputation of those products or services, the market share and so on. Long-term plans represent the strategies to be adopted in the quest to achieve its mission. These will include such things as staff appointments and training,...
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... Thank you Hooria Majid ABSTRACT Taxes affect citizens, economy of the country, businesses, governance mechanisms, etc. Not only revenue mobilization, an effective system of taxation helps in formalizing the economy, encourages economic growth, shapes political cohesion between tiers of the Government, and results in increase in social sector service delivery. We are now quite used to hearing the rhetoric by the government and bureaucracy on how Pakistan has one of the world’s lowest tax to GDP ratios since long (by their account it has stood between 9.50 and 10.40 percent in recent years), which also happens to be extremely low when compared to its neighboring countries and similar economies. So Government is unable to allocate reasonable funds for development projects. Although Pakistan has adopted best practices of the World through Income Tax Ordinance 2001 and formulation of Inland...
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...ملحق المصطلحات المحاسبية ENGLISH عربي أعلى النموذج |English Word |Arabic Word | |Absorption Costing System |نظام التكاليف الكلية أو الإجمالية | |Account Balance |رصيد الحساب | |Accountant |المحاسب | |Accountants |المحاسبون | |Accounting |محاسبة | |Accounting Assumptions (Postulates) |الفروض أو الافتراضات المحاسبية | |Accounting Concepts |المفاهيم المحاسبية - المبادئ المحاسبية | |Accounting Constraints |القيود المحاسبية - المحددات المحاسبية | |Accounting Cycle |الدورة المحاسبية | |Accounting Elements |العناصر المحاسبية | |Accounting Equation ...
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...creates an enormous amount of strain on budgets and accounts, that there is no possible way to finance this. Many programs have people hooked onto the government for dependency and support, and this money comes from the taxpayers straight to these government partakers and never sees a return from it. Without responsibility on all fronts, there is no way to guarantee a revenue stream for a nation, and without one there can be no protection from recession. The saving grace of being responsible is the radically fast turnaround rate the enacted changes make when they are put into play. Entitlements, a driving force in determining this nation’s debt threshold. These systems pay people money for a variety of reasons, most likely of the unearned kind of reasons. As such, the demand for entitlements has lead to an influx of money going to the people, more so than the money is coming back in. This creates a vacuum in the treasury that results in a burst of growing debt, sustained only by the...
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...economic decisions. Users of Accounting Information The users are internal and external decision makers. Internal: owner and manager External: investors, creditors, banks and government Management Accounting Providing information to management to help them plan, control and make decisions. Users are internal. Financial Accounting Reporting information about the entity’s performance and financial position to external users to help them make decisions. The financial statements produced for the external users are known as General Purpose Financial Reports (GPFR) and include: Balance Sheet Income Statement Statement of Changes in Equity Statement of Cash Flows (not covered in Accounting 1A) The information in the GPFR must abide by accounting standards and are produced for a wide variety of different users to ensure that accounting information is RELIABLE Ethics Ethics is a system of moral principles...
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...IFRS: FASB and IASB Fair value measurements provide users of financial statements with an accurate picture of the value of a company’s assets. Both IFRS and GAAP require firms to include information regarding fair value measurement practices in the notes of financial statements. Under either system, companies will be required to report assets at either book value or fair value, depending on the situation. As a general rule of thumb, all assets in the same class must receive the same valuation treatment. In regards to the value of receivables, IRFS uses a two- tiered method that first analyzes individual receivables, and then looks at receivables as whole to determine if there is any impairment. Basic accounting and reporting issues related to recognition and measurement of receivables, allowance accounts, recording discounts, the allowance method to account for bad debt and factoring are pretty much all the same between GAAP and IFRS. However, IASB (International Accounting Standards Board) and FASB (Financial Accounting Standards Board) are taking steps by working to implement fair value measurement, the amount they currently could be sold for, for financial instruments. The FASB and IASB are facing opposition from various factors thus have adopted a piecemeal approach. Step one is to disclose the fair value information in the notes, and second step is the fair market option which permits companies to record some type of financial instrument at fair value in financial statements...
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