List at Least Two AMT Preferences And/or Adjustments and Show

question 63

Essay

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

Understand the impact of transactions on liquidity and efficiency ratios, including the acid-test ratio and the average sale/ collection period.

Grasp the calculation and significance of the gross margin percentage, dividend payout ratio, and times interest earned ratio.

Comprehend the effects of changes in a company's financing structure on profitability and leverage ratios, such as return on assets, debt-to-equity ratio, and book value per share.

Recognize common-size financial statements as a tool for vertical financial analysis.

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Definitions:

Humanistic Perspective

A psychological approach that emphasizes personal growth, self-acceptance, and the concept of self-actualization.

Self-determination

The process by which a person controls their own life.

Self-transcendence

A state or quality of going beyond the personal self to achieve a broader, more holistic, or spiritually connected sense of being.

Self-actualization

The act of bringing to fruition one's qualities and potential, perceived as a fundamental drive or demand present in all people.