1. The profit motive distinguishes "business" activities from "personal" activities. True False 2. All business expense deductions are claimed above the line. True False 3. All investment expenses are itemized deductions. True False 4. Rental or royalty expenses are deductible "for" AGI. True False 5. To be deductible, business expenses must be directly related to a business activity. True False 6. The phrase "ordinary and necessary" means that an expense must be appropriate
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Ocean Atlantic Co. is a merchandising business. The account balances for Ocean Atlantic Co. as of July 1, 2012 (unless otherwise indicated), are as follows: [pic] .:. During July, the last month of the fiscal year, the following transactions were completed: July 1. Paid rent for July, $4,000. 3. Purchased merchandise on account from Lingard Co., terms 2/10, n/30, FOB shipping point, $25,000. 4. Paid freight on purchase of July 3, $1,000. 6. Sold merchandise on account to Holt Co., terms 2/10
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ABSTRACT The expected revenue for the food service area of the Southwestern University (SWU) if an expansion occurs was calculated. This report gives a detail of the break-even chart and related data for the food service area for Southwestern University (SWU) in order to determine if the food service can be controlled as a profit center. The analysis of the data obtained showed that the break-even was very low. It was also noted that coffee, hot dogs and hamburgers generate higher revenue
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Chapter 8 PROBLEM SET B Problem 8-1B (20 minutes) 1. Violates both applying technological control and effective segregation of duties. It is safe to assume that Latisha Tally has knowledge of employee passwords since she implemented the system of password protection companywide. It is a potentially insecure situation that Latisha processes payroll and can now probably change employee pay rates at will, or add a fictitious employee to the file. The company should hire an outside
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| | | Less: Non-production costs (SDA) | | | General Manager's salary (Sarah Newsome) | 28000 | | Sales commission payable to agents (variable) | 9750 | | Distribution/shipping costs to customers (variable) | 6500 | | Miscellaneous administration costs (fixed) | 17500 | | Advertising costs (fixed) | 3250 | 65000 | Net profit for year | | 292500 | Question 2a Direct material cost per unit | ($) | Fabric use for coats | 140000 | Internal lining of coats | 70000
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My client asked me to find out whether the value of the doughnut coupons should be included in income and ask me to give him some research. If I concluded that their value should be included in income, I was to search that if he could reduce his gross income by including in the income only the value of the coupons that he used. I understand that he has the unused coupons as documentation that neither he nor anyone else has used them. The courts define a gift as “a voluntary transfer of property
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decrease in value of investments. Changes in principal only have been included under stocks and shares (item D-6c) while the valuation change has been lumped with miscellaneous sources (item D-11). 5. On the uses side investments in shares have been adjusted by taking out the aforementioned valuation change and including the same with miscellaneous uses (item D-11). Unspecified
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Introduction Rajshahi is the largest city in the northern part of Bangladesh. It stands by side of Padma. Rajshahi was known an important business place for a long time ago and the river played a significant role to transport. Padma lost its fierceness day by day due to farakka damp and other reasons. But Rajshahi city still contains its own glory. In the British era and, before and after the liberation war of Bangladesh, the contribution of the people of Rajshahi is remarkable. The famous historian
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Question 1 Net income is gross profit less • financing expenses. • operating expenses. • other expenses and losses. • other expenses. Question 2 On November 2, 2014, Kasdan Company has cash sales of $6,000 from merchandise having a cost of $3,600. The entries to record the day's cash sales will include: • a $3,600 credit to Cost of Goods Sold. • a $6,000 credit to Cash. • a $3,600 credit to Inventory. • d a $6,000 debit to Accounts Receivable. Question 3 Glenn Company purchased
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Post. Date Description Ref. Debit Credit 2012 April 23 Accounts Receivable 12 9,000 Fees Earned 41 9,000 24 Truck Expense 55 1,000 Accounts Payable 22 1,000 29 Utilities Expense 54 1,500 Cash 11 1,500 29 Miscellaneous Expense 59 750 Cash 11 750 Prob. 2–3B (Continued) JOURNAL Page 2 Post. Date Description Ref. Debit Credit 30 Cash 11 7,800 Accounts Receivable 12 7,800 30 Wages Expense 51 4,000 Cash 11 4,000
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