Answer:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Explanation:
A deferred tax asset occurs when taxes are either been overpaid or there's an advance payment for them. In this scenario, they're not yet acknowledged in the income statement.
Valuation allowance is a reserve used by a business to offset the deferred tax asset. The statements that are true about the valuation allowance are:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Answer: The options are given below:
A. Short term.
B. Operating.
C. Long
D. Finance.
The correct option is D. Finance.
Explanation: A finance lease is the kind of lease in which a finance company is the legal owner of the asset throughout the duration of the lease, while the lessee has both operating control over the asset, and some share of the economic risks and returns from the change in the valuation of the underlying asset.
In a finance lease agreement, ownership of the property is transferred to the lessee at the end of the lease term.
Answer:
Option e. is correct
Explanation:
The Terms of Trade is equal to the average price of exports / by the average price of imports. The terms-of-trade refers to the relative price of exports in terms of imports.
Protective effect refers to the wasted resources due to production of good at a higher cost. Consumption effect refers to the loss to consumer due to higher price that leads to less consumption.
Should the home country be "large" relative to the world, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the <u>protective effect plus consumption effect</u>
Answer:
c.Product customization
Explanation:
What is Product customization?
Its a type of strategy that companies implement to attarct more customers. It usually implies the modification of designs, uses and/or characteristics of their items to satisfy the customer’s needs or desires.
This policy has the benefit of giving the company the opportunity to stand out from the competitors by fine-tuning items and services. Therefore the company gains a bigger portion of market share
In this case, KFC, altered their global formula in order to gain more acceptance in the Japanese market
Answer:
Sam’s Home Store can enforce the contract against Restore Construction Company
Explanation:
In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.
