Posted: July 6th, 2016

In the last column, mark an “X” if the economic event would be recorded differently under the cash method of accounting?

Identify a profile for a taxpayer who is more likely than the national average to be audited by the IRS. What factors cause certain taxpayers to be audited more frequently? What actions should taxpayers and the IRS take to ensure fairness and equality? Explain.

1. Please analyze and record the following selected economic events for the first month of operation using the accrual method of accounting in the attached spreadsheet. Make sure to indicate if the event is an Operating (O), Investing (I), or Financing (F) activity.

2. In the last column, mark an “X” if the economic event would be recorded differently under the cash method of accounting.
Question: Present your own company’s dividend policy or research a publicly-held company’s dividend policy and summarize your findings. Include whether the company has changed its policy in the last few years. Give your opinion as to why management decided on its particular policy, including market and financial considerations that you believe affected the policy.