Reference no: EM131706087

Answer the true or false question and explain fully

1. The use of the installment sales method of accounting to recognize revenue is not in conformity with US GAAP and is nothing more than disguised "income smoothing".

2. In recognition of enhanced demographic and economic considerations, experts predict that more Fortune 500 companies will institute traditional defined benefit pension plans.

3. The following items are treated differently for accounting purposes than they are for tax purposes. Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities.

a. Investments accounted for by the equity method.

b. Fine for polluting.

c. Estimated future warranty costs.

d. Expenses incurred in obtaining tax-exempt revenue.

e. Premiums paid on life insurance of officers (company is the beneficiary).