A change in the method of accounting for leases for tax

Reference no: EM13480415

Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material effect on the financial statements for the current year of your business enterprise.

1. A change from including the employer share of FICA taxes with payroll tax expenses to including it with "Retirement benefits" on the income statement.

2. Correction of a mathematical error in inventory pricing made in a prior period.

3. A change from presentation of statements of individual companies to presentation of consolidated statements.

4. A change in the method of accounting for leases for tax purposes to conform with the financial accounting method. As a result, both deferred and current taxes payable changed substantially.

5. A change from the FIFO method of inventory pricing to the LIFO method of inventory pricing.

Reference no: EM13480415

Questions Cloud

Stan and ollie are partners who share income in the ratio : radley and smithers share income and losses in a 21 ratio after allowing for salaries to radley of 24414 and 30821 to

The most popular way for international expansion is for a : the most popular way for international expansion is for a local firm to acquire foreign companies. one of the most

Based on this information how much product cost would be : maple company started the year with no inventory. during the year it purchased two identical inventory items at

Ending liabilities are 67000 beginning equity was 87000 : ending liabilities are 67000 beginning equity was 87000 common stock sold during year totaled 31000 expenses for the

A change in the method of accounting for leases for tax : various types of accounting changes can affect the financial statements of a business enterprise differently. assume

You are a managing partner of a prestigious investment : you are a managing partner of a prestigious investment counseling firm that specializes in individual rather than

Fast delivery is a small company that transports business : fast delivery is a small company that transports business packages between new york and chicago. it operates a fleet of

Record the events in the financial statements model below : scott company is a merchandising business that was started in 2012. scott uses the perpetual inventory system. it

Your brother is short on cash and cannot pay his rent this : 1. your brother is short on cash and cannot pay his rent this month. you pay his rent for him. is this taxable income

User Account

All Pages