Chapter 03 - The Balance Sheet and Financial Disclosures
Chapter 3
The Balance Sheet and Financial Disclosures
QUESTIONS FOR REVIEW OF KEYQuestion 3-1
TOPICS
The purpose of the balance sheet, also known as the statement of financial position, is to
presen
Chapter 6 - Individual Deductions
Chapter 06
Individual Deductions
SOLUTIONS MANUAL
Discussion Questions
1.
[LO 1] It has been suggested that tax policy favors deductions for AGI compared to
itemized deductions. Describe two ways in which deductions for A
Ch 10 Notes
To calculate the amount of gain or loss taxpayers realize when they sell assets, they must
determine the amount realized on the sale and the adjusted basis of each asset they are selling.
Simply put, the amount realized by a taxpayer from the
Chapter 14 - Tax Consequences of Home Ownership
Chapter 14
Tax Consequences of Home Ownership
SOLUTIONS MANUAL
Discussion Questions
1. [LO 1] How does a taxpayer determine whether a dwelling unit is treated as a residence or
nonresidence for tax purposes?
Chapter 16 - Corporate Operations
Chapter 16
Corporate Operations
SOLUTIONS MANUAL
Discussion Questions
1. (LO 1) In general terms, identify the similarities and differences between the corporate taxable
income formula and the individual taxable income fo
Chapter 20 - Forming and Operating Partnerships
Chapter 20
Forming and Operating Partnerships
SOLUTIONS MANUAL
Discussion Questions:
1. [LO 1] What is a flow-through entity, and what effect does this designation have
on how business entities and their own
Chapter 4 - Individual Income Tax Overview
Chapter 04
Individual Income Tax Overview
SOLUTIONS MANUAL
Discussion Questions
1.
[LO 1] How are realized income, gross income, and taxable income similar, and
how are they different?
Realized income is more bro
Chapter 8 - Business Income, Deductions, and Accounting Methods
Chapter 08
Business Income, Deductions, and Accounting Methods
SOLUTION MANUAL
Discussion Questions
1.
[LO 1] What is an ordinary and necessary business expenditure?
Ordinary and necessary im
Chapter 2 - Tax Compliance, the IRS, and Tax Authorities
Chapter 02
Tax Compliance, the IRS, and Tax Authorities
SOLUTIONS MANUAL
Discussion Questions
(1)
[LO1] Name three factors that determine whether a taxpayer is required to file a
tax return.
Filing
Chapter 7 - Individual Income Tax Computation and Tax Credits
Chapter 07
Individual Income Tax Computation and Tax Credits
SOLUTIONS MANUAL
Discussion Questions
1. [LO 1] What is a tax bracket? What is the relationship between filing status and the width
Chapter 9 - Property Acquisition and Cost Recovery
Chapter 09
Property Acquisition and Cost Recovery
SOLUTIONS MANUAL
Discussion Questions
1.
[LO 1] Explain the reasoning why the tax laws require the cost of certain assets to be
capitalized and recovered
Chapter 10 - Property Dispositions
Chapter 10
Property Dispositions
SOLUTIONS MANUAL
Discussion Questions
1. [LO 1] Compare and contrast different ways in which a taxpayer triggers a realization
event by disposing of an asset.
A realization event for tax
Andrew Gosselin
Chapter 1 Notes
Fi-305-005
Successful company needs skilled people, strong external relationships, and sufficient capital.
Proprietorship- easily and inexpensively formed, subject to few government regulations, and its
income is not subjec
Andrew Gosselin
Gb-214-002
Chapter 15 Notes
Seven Basic Quality Tools: Used to provide insight so that they can make better decisions about
how to design and improve process performance
1. Process Flow Diagrams: Tool that depicts the steps required to pro
Andrew Gosselin
FI-305-005
Chapter 16 Notes
Working capital, sometimes called gross working capital, refers to current assets used in
operations
Net working capital is defined as current assets minus current liabilities
Net operating working capital is cu
Andrew Gosselin
Chapter 12 Notes
Finance
Companies have strategic plans, operating plans, and financial plans.
Strategic plans consist of a mission statement (overall purpose), corporate scope (line of
business and geographic area of operation), corporate
Andrew Gosselin
Fi-305 Chapter 7 Notes
Stockholders that transfer the right to vote to another party do it through a proxy. If earnings are
poor and stockholders are dissatisfied, an outside group may solicit the proxies in an effort to
overthrow manageme
Andrew Gosselin
Fi-305 Chapter 6 Notes
Risk refers to the chance that some unfavorable event will occur. An assets risk can be analyzed
in two ways: (1) on a stand-alone basis (by itself), or (2) on a portfolio basis, where the asset is
held as one of a n
Andrew Gosselin
FI-305-005
Chapter 5 Notes
A bond is a long-term contract under which a borrower agrees to make payments of interest and
principal, on specific dates, to the holders of the bond.
Bonds are classified into four main types:
1. Treasury bonds
Andrew Gosselin
Fi-305
Ch 5 MiniCase
a. Par or face value: generally represents the amount of money the firm borrows and
promises to repay on a maturity date.
Coupon rate: the dollar coupon is the rent on the money borrowed, which is generally
the par val
Andrew Gosselin
Fi-305-005
Chapter 4 Notes
Time value of money (TVM) , also called discounted cash flow (DCF) analysis
Timelines: first step in a time value analysis. Cash flows are shown directly below the tick
marks, and the interest rate is shown just
Andrew Gosselin
Chapter 3 Notes
Fi-305-005
Financial statement analysis involves comparing a firms performance with that of other firms in
the same industry and evaluating trends in the firms financial position over time. Managers use
financial analysis t
Andrew Gosselin
Chapter 2 Notes
Fi-305-005
Annual report- begins with the chairmans description of the firms operating results during the
past year and a discussion of new developments that will affect future operations. The annual
report also presents fo
Andrew Gosselin
Gb-214-002
Chapter 16 Notes: Supply Chain Management
Supply chain management- the long-term relationship between a firm and its suppliers to
ensure the timely delivery of goods and services that are competitively priced.
Inbound logistics-
Andrew Gosselin
GB-214-002
Chapter 17 Notes
Lean focuses on reducing waste, increasing responsiveness, and eliminating non-value added
activities
Six Sigma focuses on data-driven decision-making, reducing variation and ongoing maintenance
and control that
Ch 18 Notes
This chapter considers transactions that affect shareholders equity those accounts that
represent the ownership interests of shareholders. Shareholders equity is a residual amount
whats left over after creditor claims (liabilities) have been
Ch 8 Notes: Code section 162 for trade/business deductions, and 274(d) for entertainment
Proprietors report business income and deductions on Schedule C of their individual income tax
returns. Schedule C income is subject to both individual income and sel
Ch 7 Notes
The applicable tax rate schedule is determined by the taxpayers filing status. Each separate
range of income subject to a different tax rate is referred to as a tax bracket. While each filing
status has its own tax rate schedule, all tax rate s
Ch 6 Notes
Deductions for AGI are generally preferred over deductions from AGI because deductions above
the line reduce taxable income dollar for dollar. In contrast, deductions from AGI sometimes
have no effect on taxable income. Because many of the limi
