Why is EBIT an important line item in the income statement? What does EBIT show us? ANSWER Earnings before interest and taxes (EBIT) is the lowest line on the income statement that isn ’t affected by the firm ’s method of financing (the relative amounts of debt and equity used). It is important because it allows an evaluation of physical business operations separate from the influence of financing decisions. It is therefore often called operating income. 4. What is meant by liquidity in financial
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and tax rates to monitor and influence their economy. The government will need to increase tax revenues to fund expenditure by increasing taxation by adjusting the income tax level. Role of Fiscal policy The role of the fiscal policy is to monitor the economy and shows the effects of adjusting income tax. The fiscal policy also can redistribute income by progressive tax which is the percentage of tax which is charged due to a person income. This allows mare tax on people with higher incomes to increase
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amount of a sales and the sales tax rate‚ find the amount of tax and the net sale after taxes. 9. The withholding tax on a weekly salary (let us assume) is computed as follows: 14% of the difference between a person’s gross pay and $13 times the number of dependents he or she claims. Read the values for the gross pay and the number of dependents; print the withholding tax. 10. Input the amount of food ordered and then output the amount to be paid when a sales tax of 4% is to be added to the cost
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TAX RESEARCH CASES ACC 430 Spring 2015 Instructor: Donald Frost Case No. 1: Eileen recently retired from AquaTrek‚ an operator of passenger cruise ships. As a qualified retiree‚ Eileen is permitted to book passage on AquaTrek vessels for a nominal service charge‚ provided the ship is not fully booked with paying customers and there is space available. Eileen has already taken two cruises‚ one to the Bahamas and one to Jamaica‚ using her retiree benefits. Compared to what AquaTrek paying customers
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The purpose of this work is the comparison of business environment of Russia and China. Russia and China have a lot in common. Both countries are geographical giants with a rapidly growing economy‚ attracting foreign investors and companies of all sizes looking for new markets. At the same time‚ the economic features of the two countries are very different from each other.In this work‚ both countries will be discussed in terms of foreign investment. With the increasing globalization of the world
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The tax system currently enforced in Zimbabwe under the authority of the Income tax Act Chap 23.06 with Acts like the Capital Gains Act Chap 23.01‚ Finance Act Chap 23.04 and the Excise duties Act as complimentary. The system evolved from traditional ideologies perpetuated from pre pre-colonial era up to now. The incidence of tax from a traditional perspective occurred from as far as the Rozvi State who was allowed
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Executive Summary This memorandum is intended to communicate the deferred tax issues of Lucent Technologies Inc. on the basis of analysis of the veracity of the situation according to the reporting framework’s guidelines to anticipate unfavorable implications that had been resulted due to poor performance of the company over the past years. The Financial Accounting Standards Board (FASB) is the recognized body for making pronouncements as Generally Accepted Accounting Principles (GAAPs) in the
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Income tax is defined as “tax levied by a government directly on income‚ especially an annual tax on personal income.” Traditionally‚ Texas has not imposed these taxes on the people. After reviewing the positives and negatives that come with income tax‚ I believe Texas should implement income tax. Texas has been labeled as a “regressive state” or a state that results in the wealthier people paying less in taxes than the poorer people. In the document Who Pays State Taxation?‚ it shows us that
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home office. Typically‚ after satisfying all the rules of probate in a formal probate process‚ the executor will close the estate. As a result‚ the executor becomes an acting executor responsible for closing tasks as described in the article Estate Income Tax Returns: Review and File the Returns. In the end‚ the one closing task an acting executor likes is the final task: the task to close the temporary home office. Close the Temporary Home Office The task of closing the temporary home office signals
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increasing production‚ minimizing human poverty through enhancing creativity and human capacity‚ stabilizing commodity prices. There was an increment of $62 in the per capita GDP in FY2009 from US$559 at the end of FY2008. Fiscal 2009 registered per capita income of US$676. About 25% of the country’s GDP in 2009 came from remittances of expatriates‚ totaling $9.7 billion and garment exports worth $12.3 billion. The country has registered significant expansion in its middle class. The consumer
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