ACC 350 Study Guide - Contingent Liability, Savings Account, Bmw N63
Document Summary
#1-1chapter 6chapter 6taxable income from taxable income from business operations business operations coverage highlights. Key concepts: gross income; adjusted gross income; Describe how taxable year relates to operating cycle. Accrual basis exceptions for prepaid income and accrued expenses. For items specifically included in gross income, see part ii (sec. For items specifically excluded from gross income, see part iii (sec. Term generally has application only to individual taxpayers. Defined as gross income minus certain specified deductions, including: Commonly called above the line deductions (deductions for agi) Rule of thumb - the lower your agi the better. Taxable income = gross income less allowable deductions. For individuals, it"s agi minus below the line deductions (deductions from agi): Greater of itemized deductions or the standard deduction : itemized deductions include such things as home mortgage interest, property taxes, charitable contributions. A corporation does not apply the above/below line concepts in computing taxable income.
