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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following taxpayers is using an income shifting tax planning strategy?

A corporation that accelerates deductible expenses into the current year

An individual who claims the standard deduction instead of itemizing

A parent who transfers investment income to their child in a lower tax bracket

A taxpayer who invests in tax-exempt municipal bonds

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Verified step by step guidance

Understand the concept of income shifting: Income shifting is a tax planning strategy where income is transferred from a taxpayer in a higher tax bracket to another taxpayer in a lower tax bracket to reduce the overall tax liability.

Analyze the options provided: Evaluate each option to determine whether it involves transferring income to someone in a lower tax bracket.

Option 1: A corporation accelerating deductible expenses into the current year. This is a timing strategy, not income shifting, as it does not involve transferring income to another taxpayer.

Option 2: An individual claiming the standard deduction instead of itemizing. This is a choice of deduction method, not income shifting, as it does not involve transferring income to another taxpayer.

Option 3: A parent transferring investment income to their child in a lower tax bracket. This is an example of income shifting because the parent is transferring income to someone (the child) who is in a lower tax bracket, thereby reducing the overall tax liability.