Using the Following Choices, Show the Justification for Each Provision

question 72

Multiple Choice

Using the following choices, show the justification for each provision of the tax law listed.
a. Economic considerations
b. Social considerations
c. Equity considerations
d. Both a. and b.
-A Federal deduction for state and local income taxes paid.

• A)Deferral of gains from involuntary conversions
• B)Carryforward of net operating losses
• C)"No change" is a possible result
• D)State income tax applied to a visiting nonresident
• E)IRS special agent
• F)Undoing the "piggyback" result
• G)Ideal budget goal as to new tax legislation
• H)Every state that has a general sales tax has one
• I)Imposed by all states and the Federal government
• J)Imposed by some states but not the Federal government
• K)Imposed only by the Federal government
• L)No correct match provided

Understand how to prepare the statement of cash flows using the indirect and direct methods.

Analyze the effects of transactions on cash flows.

Compute cash payments and receipts related to operating activities.

Determine the impact of changes in current asset and liability accounts on cash flows.

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.

Dividend Yield

An economic measure demonstrating the amount a firm distributes in dividends per year as compared to its share price.

Residual Dividend Policy

Residual Dividend Policy is a strategy where a company pays dividends to shareholders from the residual or remaining equity only after all project capital needs are met.

Dividend Market

is a sector of the financial market focused on the buying and selling of dividends or dividend-paying stocks, reflecting investors' interest in income-generating investments.