Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Financial Accounting

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

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Multiple Choice

The assignment of income doctrine most likely limits which of the following strategies?

Accelerating expense recognition to an earlier period

Transferring income to another taxpayer to reduce tax liability

Deferring revenue recognition to a later period

Capitalizing rather than expensing certain costs

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Verified step by step guidance

Understand the assignment of income doctrine: This principle in tax law prevents taxpayers from transferring income to another person or entity to avoid or reduce tax liability. It ensures that income is taxed to the individual who earns it or controls its source.

Analyze the options provided in the question: The doctrine specifically addresses the strategy of transferring income to another taxpayer, as it directly relates to the principle of taxing the rightful earner of the income.

Recognize that the other strategies listed (accelerating expense recognition, deferring revenue recognition, and capitalizing costs) are not directly limited by the assignment of income doctrine. These strategies pertain to timing and classification of income and expenses, rather than transferring income.

Focus on the correct answer: The assignment of income doctrine limits the strategy of transferring income to another taxpayer to reduce tax liability, as this violates the principle of taxing the rightful earner.

Conclude that the assignment of income doctrine ensures fairness in tax reporting by preventing manipulation of income allocation among taxpayers.