The Tax System - FIS 300 Exam 2 Student Name: Ousama...

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FIS 300 Exam 2 Student Name: Ousama Bennouri The Answers chosen are in bald, bleu color and underlined Questions: 1- What is the meaning of the following terms (definition in your own terms, not from Wikipedia or other…) Deferred Income Tax: as soon as a temporary differences exist between the total income recorded in a balance sheet of a corporation and the total of income that the corporation must pay taxes on for a exacting time period. Equipment Depreciation: An expense Equipment set up to state the moving back life expectancy and cost. Depreciation is set up over a permanent time based on current tax. Equipment completely depreciated are no longer accepted as an assets on the corporation books. Return on Equity ratios: Is the measure that corporations use to reinvest their earning to generate more earnings. It is a percentage calculated as follow “the fiscal year after tax income” divided by the book value. These percentages mean how much profit the corporation will be able to generate given the sources from stockholders. Taxable income : Is the gross income, which means in other words all the incomes that a person makes that are considered taxable by the country.
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The Tax System - FIS 300 Exam 2 Student Name: Ousama...

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