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If the balance of the retained earnings account is negative it may be called accumulated losses, retained losses, accumulated deficit, or similar terminology. Any part of a credit balance in the account can be capitalised, by the issue of bonus shares , and the balance is available for distribution of dividends to shareholders , and the residue ...
Nearly 160 accounting execs and partners were asked about why firms were making more auditing errors. The auditors were split on whether a better work-life balance could reduce the number of errors.
As far as expansionary monetary policy is concerned, cash, deposits, and other assets have no, or relatively stable, gain; and their purchasing power is more likely to be affected. Housing, gold, and other physical assets have strong anti-inflation functions, or the rate of return is tied more closely to monetary expansion.
This loss occurs because taxes create disincentives for production. The gap between taxed and the tax-free production is the deadweight loss. [4] Deadweight loss reduces both the consumer and producer surplus. [5] The magnitude of deadweight loss depends on the elasticities of supply and demand for the taxed good or service.
Another key factor among the 2017 tax law changes enacted during Trump’s first term was the provision that brought the U.S. corporate income tax rates in line with those levied in Europe and Asia.
All Income and expense accounts are summarized in the Equity Section in one line on the balance sheet called Retained Earnings. This account, in general, reflects the cumulative profit (retained earnings) or loss (retained deficit) of the company. The Profit and Loss Statement is an expansion of the Retained Earnings Account.
The cost of a distortion is usually measured as the amount that would have to be paid to the people affected by its supply, the greater the excess burden. The second is the tax rate: as a general rule, the excess burden of a tax increases with the square of the tax rate. [citation needed]
In American English, the word provision is used as a synonym for "expense", especially when it appears in a phrase that refers to the income tax cost incurred by a business during an income statement period. In income statements, the appearance of provision for income tax would refer to that expense.