In 2011,T Corporation Changed Its Tax Year from Ending Each

question 23

True/False

In 2011,T Corporation changed its tax year from ending each September 30th to ending each December 31st.The corporation earned $25,000 during the period October 1,2011 through December 31,2011.The tax on the annualized income for the short period will be greater than the tax on $25,000 when the tax rates are progressive.

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Definitions:

General Journal

A comprehensive listing of a company's financial transactions, used as the primary record for posting to individual accounts.

Adjusting Entry

An accounting entry made to update the accounts and ensure accurate financial reporting at the end of an accounting period.

General Journal

The general journal is an initial record where all transactions are first entered in accounting, using a double-entry system before posting to individual accounts.

Credit Sales

Deals in which a customer receives goods or services with the understanding that they will pay for them at a future time.