13 chapter TAX ACCOUNTING OBJECTIVES After completing Chapter 13, you should be able to: 1. List what are permissible tax years. 2. Explain the requirements for changing a tax year. 3. Identify the available accounting methods. 4. Understand the rules for accounting method changes. 5. Account for the capitalization of inventory costs. 6. Describe long-term contract reporting. 7. Defi ne the installment method of accounting. 13–2 CCH FEDERAL TAXATION—COMPREHENSIVE TOPICS OVERVIEW The
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needs to be both unusual and infrequent. However, there is an exception for material items - for one-time items that are extremely large, firms have the option of classify these items as extraordinary to provide better information to investors. 8) LIFO inventory costing yields more accurate reporting of the inventory balance on the balance sheet.F 9) Available-for-sale is the only classification that requires fair-value accounting.F 10) For tax purposes, companies typically transfer more of
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1. Which of the four basic financial statements has three main sections: one dealing with operating expenses, another dealing with financial activities, and another dealing with investment activities? a. 0 Income statement b. 0 Retained earnings statement c. 0 Balance sheet d. 0 Statement of cash flows 2. Which of the following lists the main sections of the statement of cash flows? a. 0 Operations, investment, and credit activities b. 0 Investments, credit, and cash operations c. 0 Operations
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Abstract As the world continues to expand into a global marketplace, the necessity for standardizing financial reports has become prominent. Companies with branches in multiple countries are currently reporting their financial statements based on the criteria for that country. For example, a European based organization is reporting under the IFRS standard while their branch in the United States is using US-GAAP. While the differences do not outweigh the similarities, GAAP and IFRS standards
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Conceptual Framework A conceptual framework establishes the concepts that underlie financial reporting. Conceptual framework includes objectives, qualitative characteristics, elements, measurement, and recognition concepts. The FASB Concepts Statements guide the board in developing accounting principles and provide understanding. These concept statements are non-authoritative and do not establish generally accepted accounting principles. Entities do not use the FASB Concept Statements in routine
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2 Materials BASIC CONCEPTS AND FORMULAE 1. Maximum Level: It indicates the maximum figure of inventory quantity held in stock at any time. 2. Minimum Level: It indicates the lowest figure of inventory balance, which must be maintained in hand at all times, so that there is no stoppage of production due to non-availability of inventory. 3. Re-order level: This level lies between minimum and the maximum levels in such a way that before the material ordered is received into the
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an error in a tax return is usually considered a change in accounting method. The IRS can require a change in accounting methods if the method used by a taxpayer does not clearly reect income. IRS permission is not required for a change from FIFO to LIFO. The installment method cannot be used unless the total selling price is known. Repossessions of real property sold on the installment basis are generally nontaxable. The installment sales rules do not apply to sales at a loss. 2009 CCH. All Rights
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Whole Foods Market: A Financial Analysis Throughout the course of time, changes have and will continue to occur in nearly every aspect of life. From the improvements in technology, to the evolution of the automobile, as well as everywhere in between, change is simply a part of everyday life. Perhaps one of the imminent changes upon society today is the food and drink intake of the world in general, but specifically the American people. Some grocery and supermarket companies such as Whole
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company size like Padgett’s ➢ Libris preferred to have the agreement signed before the end of the fiscal year, April 30, 1997 ➢ Fluctuating interest rates ➢ Phoenix’s entry in the picture ➢ Transformation of inventory valuation from FIFO to LIFO PROBLEM DEFINITION In order to maximize PPPC’s company value and to decrease the lending risk of CTC, they should establish a financing structure that would be beneficial and acceptable to both parties. *company value- profitability *lending
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Effectively Communicating with Clients By J. David Strother, CFP®, AIFA®, financial advisor at DSF Wealth Management, LLC Of all the elements a CPA or financial advisor needs to consider in order to operate a successful wealth management practice, an effective client communication strategy ranks at the top of the list. Regular communication is critical to the long-term success of your firm, but it has to be done right. The fact is that the vast majority of advisors want to sell, but very few
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