Why is the net income before tax the most common base used to determine the preliminary...

Why is the net income before tax the most common base used to determine the preliminary judgement about materiality? In what circumstances might the auditor use a different base?

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ekkarill92 answered 3 years ago

Why is net income before tax the most common base used to determine the preliminary judgement...

Why is net income before tax the most common base used to determine the preliminary judgement about materiality? In what circumstances might the auditor use a different base?

Your preliminary judement of materiality was based on net income. Why is it necessary to compare...

Your preliminary judement of materiality was based on net income. Why is it necessary to compare unadjusted misstatements to other bases of materiality? What should the auditor do if the unadjusted misstatements exceed one or more materiality threshold?

____ is the base used to calculate income tax. a. taxable income b. gross income c....

____ is the base used to calculate income tax. a. taxable income b. gross income c. adjusted gross income d. economic income

Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate...

Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate of 21% and provides the following selected information (covers the three tax difference items) from its ledger as at December 31, 2019 and 2020: 2019 2020 Equipment, at cost 900,000 DR 900,000 DR Accumulated depreciation, equipment 450,000 CR 525,000 CR Deferred Tax Asset 10,080 DR ? Warranty Liability 48,000 CR 56,000 CR Deferred Tax Liability 47,250 CR ...

The projected income before tax is?

A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years. Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals....

S&J Plumbing, Incorporated's income statement shows a net profit before tax of $468 and net sales...

S&J Plumbing, Incorporated's income statement shows a net profit before tax of $468 and net sales of $7,482 for 2010. Total assets are at $3,244. The balance sheet lists the company’s equity for fiscal year ending 2010 as $1,746. Calculate the following ratios for this company: Return on sales ratio (net profit margin) Return on assets (ROA) Return on equity (ROE) What make S&J Plumbing, Inc efficient?

1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine...

1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine the times interest earned ratio. 2. A company reports the following: Sales $6,480,000 Average total assets 2,400,000 Determine the asset turnover ratio. Round your answer to one decimal place. 3. A company reports the following income statement and balance sheet information for the current year: Net income $110,000 Interest expense 77,000 Average total assets 1,700,000 Determine the return on total assets. Round percentage to...

1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine...

1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine the times interest earned ratio. 2. A company reports the following: Sales $6,480,000 Average total assets 2,400,000 Determine the asset turnover ratio. Round your answer to one decimal place. 3. A company reports the following income statement and balance sheet information for the current year: Net income $110,000 Interest expense 77,000 Average total assets 1,700,000 Determine the return on total assets. Round percentage to...

1.Southlawn Inc.'s taxable income is computed as follows: Book income before tax $ 2,405,600 Net permanent...

1.Southlawn Inc.'s taxable income is computed as follows: Book income before tax $ 2,405,600 Net permanent differences (512,000 ) Net temporary differences (189,000 ) Taxable income $ 1,704,600 Using a 34% rate, compute Southlawn's tax expense per books and tax payable. a.Tax expense per books $643,824; tax payable $579,564. b.Tax expense per books $579,564; tax payable $643,824. c.Tax expense per books $817,904; tax payable $579,564. d.None of the choices are correct. 2.Monro Inc. uses the accrual method of accounting. Here...

Discuss the two most common methods used to determine when the economy is in a recession.

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Why is the net income before tax the most common base used to determine the preliminary...

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Why is net income before tax the most common base used to determine the preliminary judgement...

Your preliminary judement of materiality was based on net income. Why is it necessary to compare...

____ is the base used to calculate income tax. a. taxable income b. gross income c....

Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate...

The projected income before tax is?

S&J Plumbing, Incorporated's income statement shows a net profit before tax of $468 and net sales...

1. A company reports the following: Income before income tax expense $6,000,000 Interest expense 300,000 Determine...

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