Discuss why the associated responsibilities of management accounting are viewed as accounting and how people handling those responsibilities interface with other functional areas in fulfilling the stated responsibilities. What skills and knowledge does one need to fulfill the responsibilities?
In recent years the Securities and Exchange Commission (SEC) has been waging a public campaign against corporate accounting practices that manage or manipulate earnings to meet the expectation of Wall Street analysts. Corporations engage in such practices in the hope of avoiding shortfalls that might cause serious declines in their stock price. For the following case that the Securities and Exchange Commission challenged, explain why it was a violation of the matching rule and how it should been accounted for.
America Online (AOL) recorded advertising as an asset rather than as an expense.
Which statement is false?
Corporate income tax is an expense, not a distribution of the profits to the government.
In general, temporary differences are resulted from timing differences between GAAP and tax regulations.
Non-taxable revenue causes permanent differences between pretax accounting income and taxable income.
Non-tax-deductible expense causes the temporary difference.
