CASE STUDY REGARDING THE VARIATION ON INVENTORY ON RETAINED EARNINGS AND ON THE TAX ON INCOME

Abstract

This research paper consists in the analysis of the manner in which the account 711 – “Revenues associated with the costs of the completed production” influences the retained earnings and implicitly the tax on income owed by the economical entities which are liable to set and pay this tax to the state budget. In order to elaborate this research topic was needed the determination of the retained earnings and fiscal outcome in a production company. Based on these results later on, it has been studied the impact of using account 711 – “Revenues associated with the costs of the completed production” in different scenarios for a agricultural economical entity

Keywords

• Variation in inventory
• incomes
• expenses