List the Five Elements of the Business Environment

question 70

Short Answer

List the five elements of the business environment.

Assess the impact of net operating losses on deferred tax assets and the importance of future profitability.

Recognize the implications of uncertain tax positions on financial reporting.

Identify the requirements for the disclosure of income tax information in the notes to financial statements.

Evaluate the effects of accounting choices and changes in tax laws on inter-firm and intra-firm comparisons.

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a certain price over a specified period.

Price Effect

The impact on consumer demand and company revenue as the cost of a good or service changes.

Quantity Effect

The impact on total revenue that results from changing the quantity of goods or services sold, holding all else constant.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity demanded divided by the percentage change in price.