How would explain to the owner

Assignment Help Accounting Basics
Reference no: EM132723914

During the period, the business acquired an equipment costing P 200,000 in cash. The business owner is questioning why you as his accountant did not include the P 200,000 equipment as one of the items of operating expense in the Income Statement which resulted in a higher income tax of the business.

Problem 1: How would you explain it to the owner

With regards to the question po, is there a possibility po ba na the accountant used the accrual basis wherein An expense is recognized on the income statement when it's incurred, regardless of when payment is made.

Reference no: EM132723914

Questions Cloud

Calculate the deduction that will be allowed for the cows : Livestock and produce: Ring-fencing provision, Calculate the deduction that will be allowed for the cows bought during the year of assessment.
What is ebola virus : What is Ebola Virus? Signs and Symptoms of Ebola Virus, History of Ebola Virus, Effects on a healthy body
How does an organization compensation system tie : How does an organization's Compensation System tie to their Performance Management System?
How to keep pathogens out : Describe in detail information on how to keep pathogens out? and what's the body's first line of defence?
How would explain to the owner : How would you explain it to the owner. The business owner is questioning why you as his accountant did not include the P 200,000 equipment
Performing a chi-square test for a coin toss : Describe the steps for performing a chi-square test for a coin toss.
Prepare the entry to record any inventory shrinkage : Prepare the entry to record any inventory shrinkage based on physical count. A physical count of its July 31 year-end inventory discloses
What is species biodiversity : In own words, what is species biodiversity? Discuss at least one reason why you think species diversity is important.
Describe the factors of the dark triad : Describe the factors of the "dark triad." What is perception? Briefly discuss several factors that influence perception

Reviews

Write a Review

Accounting Basics Questions & Answers

  Should award plus accept this special order

Award Plus has just received a special one-time-only order for 2,000 medals at $98 per medal. Accepting the special order would not affect the company's regular business.

  Calculate the company-wide net income

A segment of a business reported a contribution margin of $36,000 and controllable fixed costs of $12,000. The company-wide net income would have been

  Biltmore financial is a banking services company that

biltmore financial is a banking services company that offers many different types of checking accounts. the bank has

  Explain briefly distinguishing features of contract costing

As soon as materials are delivered to the site. they are charged to the Contract Account. A record is also kept of materials as they are actually used.

  Make the property, plant, and equipment section

Make the property, plant, and equipment section of the balance sheet as of December 31, 2020. Note: Use straight-line depreciation with no salvage value

  How should devers respond to adkins''s request

Should Devers's knowledge of the compensation plan be a factor that influences her estimate?

  Find the depreciation for double-declining-balance method

Determine the depreciation for 20Y5 and for 20Y6 by the double-declining-balance method

  Describing the effect of each transaction on assets

Write a minimum 150-word response to each of the following scenarios from Exercise E3-1 in Financial Accounting (p. 132).

  What is the wacc

Refer to the data for Valentine Foundations, Inc. (VF). What is the WACC (weighted average cost of capital), and show how you calculated it.

  Your friend sara has been hired to help take the physical

your friend sara has been hired to help take the physical inventory in malabys hardware store. explain to sare what

  What is the value of byrnco company bid in today dollars

If money is worth 5 % compounded semi-annually, what is the value of Byrnco company's bid in today's dollars? Which company has the lowest bid (Arcon or Byrnco)

  Prepare olsheskis cash flow statement for the year

Prepare Olsheski's cash flow statement for the year ended December 31, 2017 using the indirect method.balance sheet for =tea at the end of 2016 and 2017

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd