4-1 4 Income Statement Usefulness Predicting future performance. 4-2 Evaluate past performance. Help assess the risk or uncertainty of achieving future cash flows. Income Statement Limitations Companies omit items that cannot be measured reliably. 4-3 Income is affected by the accounting methods employed. Income measurement involves judgment. Income Statement Quality of Earnings Companies have incentives to manage income to meet or
Premium Revenue Income statement Balance sheet
Definition of Gross Income‚ Taxable Income‚ and Net Income Gross income refers to all income but not excluding exempt income and subject to final income tax. Example of gross income include: salaries and wages‚ commission‚ sale of and other dealings in property‚ rents‚ dividends‚ and securities. Exclusion from gross income or those incomes that are exempted from tax include: life insurance proceeds paid to beneficiaries upon the death of the insured; compensation for injuries or sickness‚ retirement
Premium Tax Taxation in the United States Progressive tax
Income Effect The equilibrium of the consumer is obtained on the basis of the assumption that the income level of the consumer remains constant and prices of the two commodities also remain constant. When income of the consumer changes or when any price level changes the equilibrium position will be affected. When income increases‚ prices of the commodities remaining the same‚ the budget line shifts parallel to the right. This happens because there is a change in the intercept part of the equation
Premium Consumer theory
“Family Income” Wage- Is the money amount receive daily for rendering service. Received by unskilled semiskilled‚ and skilled workers or blue-collar workers. A salary is the amount of money received monthly by professionals or white-collar workers. IN ADDITION TO WAGES OR SALARIES‚ SOME FAMILIES HAVE OTHER SOURCE OF INCOME THIS INCLUDE THE FOLLOWING: 1. Dividends from investments in bonds & stock. 2. Gifts from relatives & friends. 3. Inheritance. 4. Rentals from apartments
Premium Investment Income Management
Sta. Maria‚ Oel Angel BSBA – Marketing III February 15‚ 2014 Law in Income Taxation Mrs. Gosom Business Income Tax – A tax that governments impose on financial income generated by all entities within their jurisdiction. By law‚ businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
Premium Tax Tax refund Taxation in the United States
oyment incomeEMPLOYMENT INCOME Source of Employment Income The basis of taxation on employment income is that income from exercising an employment in Malaysia is regarded as Malaysian derived income. All income attributable to the employment exercised in Malaysia is subject to Malaysian tax irrespective of where the remuneration is paid. Where an employee is required to perform his duties outside Malaysia‚ the entire remuneration is still chargeable to Malaysian tax if the services rendered outside
Premium Option Employment Tax
for determining whether an item is deductible as an expense under § 162 or under § 212 is that a. production of income expenses are not deductible. b. § 162 business expenses usually are deductions for A.G.I.‚ while § 212 production of income expenses usually are miscellaneous itemized deductions. c. § 162 business expenses are deductions from A.G.I.‚ while § 212 production of income expenses are deductions for A.G.I. d. it resolves certain ownership questions. 3. C purchased two cars in 2010
Premium Taxation in the United States Expense Operating expense
social discrimination existed all over the world‚ such as racial‚ religions‚ sex discrimination etc. Every person has equality before the law‚ but‚ in many case‚ the fate of people would be decided to depend on their background. Depending on parent income‚ some people can graduate from private university‚ others just graduate from public high school. In fact‚ these different of process would greatly influence in their future. As I watched video which story about social discrimination and each worker
Premium United States Racism Social movement
Income inequality: Causes and Trends The distribution of wealth is extremely unequal in America and the whole world. This paper documents the growing inequality‚ and examines three reasons for its increase. The income growth for top earners is faster than income growth for the poor. This accelerated income growth for top earners would increase the income gap between top earners and the poor. In addition‚ income inequality between the poor and top earners in the US is becoming greater than in other
Premium Economic inequality United States Distribution of wealth
Question 14-4 Internal Revenue Code Section 351 permits shareholders of a corporation to defer recognition of a gain or loss on the transfer of assets to the corporation. The transfer of property may be made when a new corporation is formed or may reflect additional capital contributions to an existing corporation. Without Section 351‚ a sole proprietorship or a partnership would have difficulty adopting the corporate form of organization for legal and/or tax purposes because the transfer of appreciated
Premium Taxation Tax Corporation