Accounting Answers

A. List down at least 5 taxable compensation income in the Philippines.

B. Name some individuals who are required to file income tax returns.

1. Explain the Scope of Taxation(Comprehensive).

2. Explain the Scope of Tacarion(Plenary)

3. Explain the Scope of Taxation(Unlimited)

4. Explain the Scope of Taxation(Supreme)

1. What are the basic principles of sound tax system?

2. What are the nature of the state's power to tax?

1. What is taxation?

2. What are the purposes of primary taxation?

3. What are the purposes of secondary taxation?

1. Miss Gina Galang is a teacher in Philippine Open University. During the year, she received 300,000 as salary and in addition is given free meals with a value of 50,000 and a dorm adjacent to the school with a value of 60,000. How much is the gross compensation income of the taxpayer?

2. Suppose the University assigned Ms. Galang to live in the school dormitory (with free meals and lodging) for the convenience of her employer. How much is the compensation income?

A. Read the problem carefully and explain your answer briefly.

1. The government has called upon its residents and citizens to pay taxes and assume monetary burdens so that it can finance public needs and perform its functions. Mr. Dela Cruz refused to pay taxes. Accordingly, he does not care whether the government continue to exist or not. Aside from that he just wanted to save all his millions for himself. Is the contention of Mr. Dela Cruz correct? Why?

With reference to financial management, write a short essay on the concept of

time value of money as a key fundamental in respect of managers’ maximising corporate value for shareholders. Maximum 600 words and include references.

With reference to financial management, write a short essay on the concept of cost of capital as a key fundamental in respect of managers’ maximising corporate value for shareholders. Maximum 600 words and include references.

With reference to financial management, write a short essay on the concept of sources of finance as a key fundamental in respect of managers’ maximising corporate value for shareholders. Maximum 600 words and include references.

Aero Inc.

Balance Sheet

December 31, 2019

Cash $20,000

Accounts Receivable 21,200

Investments 32,000

Plant Assets 81,000

Land 40,000

194,200

Accounts Payable $30,000

Bonds Payable 41,000

Common Stock 100,000

Retained Earnings 23,200

$194,200

During 2020, the following occurred.

1. Aero liquidated its available-for-sale debt investment portfolio at a loss of $5,000.

2. A tract of land was purchased for $38,000.

3. An additional $30,000 in common stock was issued at par.

4. Dividends totaling $10,000 were declared and paid to stockholders.

5. Net income for 2020 was $35,000, including $12,000 in depreciation expense.

6. Land was purchased through the issuance of $30,000 in additional bonds.

7. At December 31, 2020, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000.

a. Prepare a statement of cash flows for the year 2020 for Aero.

b. Prepare the unclassified balance sheet as it would appear at December 31, 2020.