Q: Explain the potential advantages and disadvantages of using CAATs
A: ADVANTAGES OF USING USING CAATs (COMPUTER ASSISTED AUDIT TECHNIQUES) 1. CAATs HELPS THE AUDITOR TO…
Q: What are the advantages and disadvantages of FIFO?
A: First-in-First-Out: In First-in-First-Out method, the costs of the initially purchased items are…
Q: What is meant by the term antidilution? Give an example.
A: An increase in the earnings per share refers to anti-dilution. This results on account of the…
Q: Which of the following is an expected advantage of implementing IFRS?
A: International Financial Reporting Standards, also known as IFRS, basically represents the standards…
Q: What are value drivers?
A: Answer: The basic determinants of the cash flows of a project or primary factors in project…
Q: What are the main costs and limitations of implementing ABC systems?
A: Activity Based Costing: Activity based costing is one of the methods of costing to identify the…
Q: Define the term PW criterion?
A: Present worth is a systematic identicalness technique where cash flows of a task are limited at…
Q: Discuss the different variables of CAPM. What are the benefits and limitations of the CAPM?
A:
Q: Explain key features of DLT & mention its potential benefits.?
A: As the name suggests, Distributed Ledger is a database that is spread over multiple locations. These…
Q: What are the appealing qualities of Payback Screening?
A: The payback method is the simplest way of checking the viability of the project. The payback method…
Q: What are some disadvantages of the APT?
A: APT is the abbreviation used for the arbitrage pricing theory. A theory or a model for asset pricing…
Q: Why is the NPV preferred over the IRR?
A: Net Present Value is a method of finding the profitability of a project by discounting future cash…
Q: Explain the drawbacks of IRR over MIRR with example?
A: Capital budgeting is part of investment decisions. Business firms consider capital budgeting in…
Q: Why is it more accurate to describe the subject matter as CVP analysis rather than as breakeven…
A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…
Q: Is an higher NPV better than a lower NPV and why?
A: The net present value is the difference between sums of the present value of cash inflows and…
Q: Which of the following is FALSE regarding advantages and disadvantages of the SML or CAPM?
A: The following statements are true: The model relies on the past to predict the future, which is not…
Q: ) What deficiencies in IRR can be overcome by using MIRR?
A: Introduction : Internal rate of return, commonly referred to as the IRR, can be understood as the…
Q: MCMC and autocorrelation related to each other? If related, then what are the disadvantages…
A: GIVEN MCMC and autocorrelation related to each other? If related, then what are the…
Q: How can you partically alleviate the various drawbacks of IRR?
A: Internal rate of return (IRR) is one of the capital budgeting techniques which is used to measure…
Q: advantages and disadvantages of the scattergram method as compared to the high-low method?
A: Solution High-low method takes high level activity and low level activity and measure the total cost…
Q: What are the advantages and disadvantages of LIFO?
A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…
Q: What is residual value? Support your answer with an example
A: Residual value is also called as salvage value
Q: What are the advantages and disadvantages of using MUS? Under what conditions is it best used?
A:
Q: What are two advantages of ADR? List and provide an example for each.
A: ADR refers to the American Depositary Receipt. ADR is a negotiable certificate which represents a…
Q: What alternatives are available to Wilkinson and Walker to deal with this situation, and what are…
A: Introduction: When a person or organization becomes insolvent, it is unable to meet its financial…
Q: What is the decision rule for NPV?
A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…
Q: What is the purpose of using the high-low method?
A: High-low method: In the high-low method, the semi variable-cost approximation is calculated by using…
Q: Describe the potential costs and benefits of LBOs?
A: LBO is the acquisition method where the company used to use the borrowed money in order to acquire…
Q: Contrast the advantages and disadvantages of CASE tools. What should determine whether CASE is used?
A: CASE Tools: CASE stands for Computer Aided Software Engineering Tools. CASE is used for the…
Q: What is counterbalancing?
A: Errors: The comparability and consistency of the financial statements decreases when a company…
Q: What is the difference between positive and negative predictive value?
A: Positive predictive value is the probability that subjects with a positive screening test truly have…
Q: What is the major disadvantage of the high-low method?
A: High-low method: High-low method is a method of calculating the variable cost and the fixed cost of…
Q: What are valid weaknesses of NPO?
A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…
Q: What are the advantages and disadvantages of XERO?
A: XERO is cloud-based software of accounting that suite for small businesses, medium businesses, and…
Q: what is a provable intrinsic value? can you give a example
A: Intrinsic value of a stock is its fundamental value. This is calculated by taking in to…
Q: Analyze the potential disadvantages of the LCNRV method
A:
Q: How is VaR used to limit risk?
A: Value at Risk (VaR) a statistical tool which measures and quantifies financial risk a firm or…
Q: What are the common benefits of GSIS and SSS?
A: GSIS is termed as a "government service insurance system" and it provides coverage of insurance to…
Q: What advantage does scenario analysis have over sensitivityanalysis?
A: In finance, we are required to analyze the change in value of one variable over the change in the…
Q: Why is Scenario Analysis useful?
A: Scenario Analysis is a process where various (more than one) input changes are made at the same time…
Q: What is OLTP and OLAP? How are they different?
A: OLAP stands for Online Analytical Processing which helps in analyzing different business elements…
Q: What are practical weaknesses of NPO?
A: Organizations are described as business units which are established by the individuals, or group of…
Q: How is breakeven analysis different from CVP analysis?
A: Breakeven analysis: It helps to analyze the break-even level of company that is, the level of…
Q: What is a goingconcern problem? What factors can contribute to such aproblem?
A: Given: To analyse about the going concern problem and its factors contribution as follows,
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- Which is true regarding the taxation of social security benefits? Having earned income will reduce the tax on benefits RMD's are not considered when calculating any possible taxes owed Benefits are taxed at a rate of 100% Benefits could be taxed at a rate of either 50% or 85%Self-Study Problem 5.4 For each taxpayer, compute the maximum contribution to the retirement plan. a. Lewis, a self-employed individual, has net earned income of $50,000 in 2021. If Lewis has no employees, calculate the maximum contribution to a SEP plan that he may deduct from his adjusted gross income. X b. During 2021, Linda, age 32, has a salary of $40,000. She participates in a Section 401(k) plan and chooses to defer 25 percent of her compensation. What is the maximum amount Linda can contribute to the Section 401(k) plan on a tax-deferred basis? $ 10,000 If Linda's salary was $125,000, instead of $40,000, what is the maximum amount that she could contribute to the Section 401(k) plan on a tax- deferred basis? XTax Exemptions Exemptions allow people to take money out of their paychecks for specific uses before the income is taxed. These deductions are generally handled through the employer. Examples include: Flexible Spending Accounts. A few thousand dollars a year can be held back from your paycheck to pay for essential items such public transportation to and from work, and medical expenses. Individual Retirement Account Contributions. Under this exemption, you can put aside a certain amount of money for retirement without paying taxes on it. For example, the 2014 limit was $5, 500. Example: A single person earns $40,000 a year. Each month their employer takes out $200 and puts it into a retirement account a year). The employer also takes out $50 a month for transportation ($600 a year). This reduces the amount of income counted towards taxes by $3, 000 The employee can still spend the $50 on bus or train tickets for their commute, but the earnings do not count as income for tax purposes.…
- How are Social Security retirement benefits taxed? Question 7 options: Social Security benefits are not subject to income tax. They were already taxed Based on the individual or couple’s MAGI and half of their Social Security benefits. Up to 100% of Social Security benefits can be subject to tax. Up to 50% of Social Security benefits can be subject to tax.What is the maximum that can be deducted as an above the line deduction for the amount that you pay to social security for self-employment taxes? a. 25% b. 100% C. 50% d. none e. 75%1. What tax is used by the federal government to provide unemployment compensation to individuals who are out of work? Answer: A. FUTA B. SUTA C. Medicare D. Social Security 2. When completing Form 1096, the maximum number of types of Form 1099 that may be selected is _____. Answer: A. 1 B. 2 C. 3 D. 4 3. What is the FUTA tax rate in a state that has a 1.5% credit reduction? Answer: A. 1.2% B. 1.5% C. 2.1% D. 2.7%
- Question content area top Part 1 Determine how much the following individual will save in taxes with the specified tax credits or deductions. Rosa is in the 28% tax bracket and claims the standard deduction. How much will her tax bill be reduced if she makes a $500 contribution to charity?5. What type of tax goes to help pay for medical care of people over 65 years old? a. Income tax b. Property tax c. Sales Tax d. Social Security tax e. Medicare tax 6. What type of tax takes a percentage of the money you make on a job? a. Income tax b. Property tax c. Sales Tax d. Social Security tax e. Medicare tax 7. What type of tax goes to help pay for retirement? a. Income tax b. Property tax c. Sales Tax d. Social Security tax e. Medicare tax 8. True or False: Businesses don't have to pay any taxes in the United States. a. TRUE b. FALSE 9. According to the article, where does the United States rank worldwide in highest income taxes? a. 1st b. 7th c. 25th d. 100th e. 150th 10. What is the name of the agency that collects taxes in the United States? a. Secret Service b. Federal Bureau of Investigation c. Internal Revenue Service d. Department of Energy e. Department of the InteriorSelf-Study Problem 2.13 A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year. Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the following information: If an answer is zero, enter "0". Details a. The payments are made in 2021 as part of a divorce decree executed in 2018. The divorce decree is modified in 2021 to explicitly apply the provisions of the TCJA. b. The payments are made in 2021 as part of a divorce decree executed in 2016. c. The payments are made in 2021 as part of a divorce decree executed in 2021. Deductible by payor Includable by recipient 00 00
- 1. Consider the 2020 information for a single taxpayer without children: Situation A Situation B Wage Income Tax free intertest income Medical expenses paid State income taxes paid 85,000 105,000 2,200 2,200 7,950 3,800 450 3,800 Local property taxes paid Mortgage Interest paid Charitbale contributions 4,000 5,100 2,900 480 a. What is the total taxes owed under each scenario? b. In each scenario, what is the effective tax rate based on Taxable income? In each scenario, what is the marginal tax rate? C.Which of the following statements about the FICA tax is not true? a. The income amount subject to the Social Security portion of FICA tax has increased significantly over the years. b. No FICA taxes are required to be paid by employees or employers in 2020 due to COVID c. The FICA tax is composed of two parts, Social Security and Medicare. xd. Self-employed individuals pay self-employment taxes. Oe. Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum Social Security tax base.In 2019, what is the top tax rate for individual long-term capital gains and the top tax rate for long-term capital gains of collectible items assuming that the Medicare tax does not apply. 10; 20 20; 28 15; 25 25; 28