The directors also advised the financial accountant to make a provision for:         (i)   bad and doubtful debts of $30,000;         (ii)  annual leave and long service leave of $60,000. The company directors come to you as the taxation adviser of the company and wish to know how each of the items mentioned above are to be treated for taxation purposes.

Which of the following users of accounting verifies accounting information to check the Tax compliance by the companies? a. Tax authority b. Regulatory agencies c. Management d. Creditors

You are the auditor and are planning the audit for the financial year ending 30 June 2019. In the audit of personnel expenses account, the amount presented on the financial statement is $12,000,000. Client’s profit after tax is $4,000,000. You determine that misstatements on the financial statement level below 7% of profit after tax will be considered immaterial. Calculate the overall materiality. Does this level of materiality apply to the personnel expenses account?

Which of the following professional services would be considered an attestationengagement?(1) Advocating on behalf of a client about trust tax matters under review by theInternal Revenue Service.(2) Providing financial analysis, planning, and capital acquisition services as apart-time, in-house controller.(3) Advising management in the selection of a computer system to meet business needs.(4) Preparing the income statement and balance sheet for one year in the future basedon client expectations and predictions.

What is the primary purpose of financial accounting? A) To control the spending of a company B) To manage employee payrolls C) To provide financial information to external users for decision-making D) To calculate the company's tax liabilities

The Assistant Manager of Ridley Corporation is seeking your advice as the accountant, in dealing with the accounting changes in the company for the year 2020. Prepare a report, indicating the appropriate accounting treatment for the following situations. In your report, indicate the type of accounting change (change in accounting policy or change in estimate) or correction of error and the appropriate accounting treatment (retrospective or prospective).1. It was found in May 2020 that warranty claims for 2019 sales have increased because of a defective component used in manufacturing. The extra costs amounted to $200,000 in excess of the 2019 warranty accrual. 2. In 2020, the company examined its entire policy relating to the depreciation of plant equipment. Plant equipment had normally been depreciated over a 15-year period, but recent experience has indicated that the company was using too short a period in its estimates and that the assets should be depreciated over a 20-year…

Purpose:This assignment aims at developing an understanding of students on different concepts of Accountingfor Income tax and the application of those concepts in the practical financial setting. In addition toanswering theoretical questions on different concepts on accounting for income tax, students willneed to analyse the tax related disclosures made by an ASX listed company in its financial statementsand the associated notes to the financial statements.Assessment task:Please answer the following questions relating to Accounting for Corporate Income Tax.Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer withsuitable example.Question 2: Will the existence of unused tax losses always lead to the recognition of a deferred taxassets? Explain your answer with suitable example.Question 3: Do the liabilities and assets that are generated by using the 'balance sheet method' ofaccounting for tax appear to be consistent with the definition and…

Suppose an auditor has been paid $1,000,000 each year for the past several years by a company to perform the audit of its annual financial statements. This company is the auditor’s largest client. In the current year, the auditor notices that the preliminary income statement excludes certain expenses that typically are shown. When asked, management tells the auditor that these expenses do not reflect the company’s true performance, so they will not be shown in this year’s income statement. Plus, management informs the auditor that it will be paying $1,200,000 for this year’s audit, and management commits to using the auditor for at least five more years. Required: 1. Understand the reporting effect: Does the audit arrangement described above have the potential to jeopardize the auditor’s opinion of management’s decision not to report certain expenses? 2. Specify the options: Are auditors employees of the company who must accept requests of management? 3. Identify the impact: Do…

Define the branches of accounting of the following: 1.preparation of general purpose financial statement. Answer:____________ 2.evaluation of the performance of a sales department. Answer:___________ 3.develop standards to address a new business set up. Answer:____________ 4.review tax compliance of the business. Answer:_________ 5.evaluate whether a branch of the business complies with the collection and deposit policy of the company. Answer:_________ 6.review whether the financial statement are presented fairly and in compliance with accounting standards. Answer:_________ 7.report on the spending of government funds. Answer:__________ 8.report on the total cost of materials and labor used in the production. Answer:________ 9.conducting lectures on accounting topics. Answer:___________

When should liabilities for each of the following items berecorded on the books of an ordinary business corporation?(a) Acquisition of goods by purchase on credit.(b) Officers’ salaries.(c) Special bonus to employees.(d) Dividends.(e) Purchase commitments.