Accounting - unit 15 true or false

A corporation using a 35% marginal tax rate must pay income taxes equal to 35% of its income before federal income taxes

False

Any amount of federal income tax owed at the end of the fiscal year is debited to federal income tax payable

False

Businesses must use a 12-month period, or the fiscal year, ending on December 31 for reporting their financial performance

False

Corporation anticipating annual federal income taxes of $500 or more are required to pay estimated taxes each month

False

Estimate of the cost, salvage value, and useful life of a plant asset are used to calculate its annual depreciation

False

For a company using the periodic inventory method, the account balance of merchandise inventory changes during the fiscal period

False

If ending inventory is less than account balance of merchandise inventory, the inventory adjustment will include a credit to income summary

False

The adjustment for accumulated depreciation - store equip ment includes a credit to depreciation expense - store equipment

False

the annual straight - line depreciation of war and costing $40,000 with a salvage value of $10,000 in the useful life 20 years would be 1500

False

Adjusting entry for merchandise inventory is unique to a merchandising business

True

Functional depreciation occurs when a planet asset becomes inadequate or obsolete

True

Rather than using a worksheet, a business can use an unadjusted trial balance and record adjustments directly to a general journal

True

The adjusting entry for accrued revenue increases a revenue account (a credit) and increases a receivable account (a debit)

True

The adjustment for the supplies -office account will result in a debit to supplies expense - office

True

The amount of the adjustment for prepaid insurance represents value of insurance premium used during the fiscal period

True

The animal straight-line depreciation of equipment cussing or thousand dollars with a salvage value of $500 and useful life of 5 years would be $700

True

The first step in preparing adjusting entries is to prepare an unadjusted trial balance

True

The tax rates for corporations can be changed by an act of Congress

True

The trial balance provide a complete list of accounts that may need to be brought up to date

True

the adjustment for federal income tax payable and federal income tax expense is determined only after all other adjusting entries are posted in the net income before federal income tax is determined

True