Chapter 08 Business Income, Deductions, and Accounting Methods True / False Questions 1. The Internal Revenue Code authorizes deductions for trade or business activities if the expenditure is "ordinary and necessary". True False 2. Business activities are distinguished from other activities in that business activities are motivated by the pursuit of profits. True False 3. The phase "ordinary and necessary" has been defined to mean that an expense must be essential and
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RE: | Interest costs on new warehouse construction ------------------------------------------------- Memo Overview It is permissible to capitalize interest into the cost of this warehouse. GAAP requires that only actual interest costs incurred during construction are to be capitalized. To qualify for interest capitalization, an asset must require a period of time to ready the asset for its intended use. Section 835-20-05 of the Accounting Standards Codification explains that capitalized interest
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1. The structure of a simple organization • A. limits the owner's(s') control • B. correct maximizes the owner's(s') control • C. minimizes the owner's(s') control • D. slightly increases the owner's(s') control Correct : Since simple organizations tend to be made up of one or a few owners and just a few employees, the owner’s(s’) level of control is extremely high. Materials • Simple Organizational Structure 2. This structure is one in which a set of relatively autonomous
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The Financial Accounting Standards Board, the guideline making association for sound accounting standards, has issued two guidelines influencing the charitable part. These models will have the most noteworthy effect on philanthropies in more than 20 years. The two guidelines are Financial Accounting Standard No. 116, managing commitments made & got, & Financial Accounting Standard No. 117, managing monetary articulation group. Agreeability with both models is needed for a considerable length
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FINANCIAL STATEMENT ANALYSIS: A TOOL FOR PERFORMANCE EVALUATION A Case Study of Oceanic Bank By IBRAHIM UMAR PGA/09/07766 M.Sc. Assignment Submitted to Dr. M.I. Kida CNA Department of Accountancy University of Maiduguri 2Financial Statement Analysis: A Tool for Performance Evaluation Jan. 2010 3Financial Statement Analysis: A Tool for Performance Evaluation ABSTRACT Financial statements are prepared to meet external reporting obligations and also for decision making purposes
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requires a short-term ROI target of 15%. This a fair measure of divisional profitability for a new project for Diversified Electronics. The new product is in a growth market and can expect a 10% increase in price every year which applies to price and costs except depreciation and land. RULES There are four ways to measure divisional performance – divisional income, Return on Investment (ROI), Residual Income, and Economic Value Add (EVA). Diversified Electronics currently uses the ROI measure. ROI
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the role of accounting and accounting information with regard to control and performance evolution of modern organizations. In you discussion you should consider the positive impact and limitations of accounting and accounting information on MCS. The use of accounting information had been started from the traditional cost accounting developments and has undergone many revolutionary attributes such as ROI measure, capital budgeting, agency theory and transaction cost economics
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Seetharaman, Ismail, and Saravanan (2007) conducted a survey to identify some current issues in the environmental management system (EMS). Then, Seetharaman et al. built an environmental accounting (EA) research model in manufacturing industry to determine and establish the monitoring and measurement in the environmental accounting system. In their first study, the findings of survey showed that there existed three main issues in the EMS, namely: - Lack of environmental awareness: 68% of companies underestimated
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THE IMPACT OF INFORMATION TECHNOLOGY ON ACCOUNTING SYSTEM A CASE STUDY OF FIRST CITY MONUMENT BANK PLC MAKURDI ABSTRACT This study examines the impact of information technology on accounting system. The researcher has done this research using primary and secondary sources of data thereby adopting the questionnaire method and personal interview as a data collection technique. The statistical tool adopted in testing hypothesis was analyzed using chi-square. The major findings of this research
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Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.4, No.18, 2013 www.iiste.org Problem with Human Resource Accounting and A Possible Solution Md. Mustafizur Rahaman1* Md. Amzad Hossain2 Tabassum Akter3 1. Lecturer, Department of Accounting, Bangladesh University of Business & Technology (BUBT), Mirpur-2, Dhaka-1216, Bangladesh 2. Lecturer, Department of Business Administration, East West University, Plot No-A/2, Jahurul Islam City, Aftabnagar Main Rd
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