Finance Assignment Example | Topics and Well Written Essays - 3000 words - 1

Finance - Assignment Example Tax Solutions Inc. is targeting to offer solutions so as to help businesses reduce tax exposures, capitalize on available tax incentives and hence increase their cash flows for growth. It targets small and medium sized enterprises (SMEs) in the USA to grow and create value with them. Among the tax incentives that Tax Solutions Inc. guide businesses on are industry specific and include Domestic Production Activities Deduction for manufacturers through its tax specialists in manufacturing industries irrespective of the nature of manufacturing. In addition, Tax Solutions Inc. team of experts will help them assess how a given tax credit fits with your overall tax strategy and timing. 31/12/20X4 - There are 7 employees working at Tax Solutions Inc., and they received their salaries at the weekend. The work week has 5 days and starts on Sunday and ends on Thursday. Weekly salary is $170,000, and it is paid every Thursday. December 31 fell on a Tuesday. This is a list of all closing balances of ledger accounts pertaining to a particular period. It is in this list that ledger balances are grouped either into debit balances and credit balances.1 In this regard, assets and expenses are debited while capital, revenues and liabilities are credited. At the end of the day, the debit and credit entries must be equal, and financial statements are then prepared using these balances. First, since its preparation id based on the principle of double entry, it is used to check the arithmetic accuracy because the debit and credit entries must be equal2. Second, it is used, to summarize, financial transactions that have taken place over a certain period. Third, it is used to trace accounting errors back to the journals and ledgers. Fourth, it is used by accountants as a working paper and the initial step towards the financial statements preparation. Despite the uses described above, trial balance suffers from serious