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which of the following statements is true of revenues

accrual-basis; May. D understated; $5,325. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. Which of the following pre-payments requires an adjusting entry at the end of the year? . 6. Gift for the purchase of new playground equipment. A)The company has issued $60,000 of common stock. At December 31, 2019, GolfWorld should make the following adjustment: A. Debit Sales Revenue by $3,750 and credit Unearned Sales Revenue by $3,750. debit Supplies $900; credit Supplies Expense, $900 an adjusting entry is completed ________. Pakistan is the 33rd-largest country in the world . c. No effect. C Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. Which explains this entry? which of the following describes the environment in internal control? which of the following will be categorized as an investing activity on the statement of cash flows? C a. A(n) ___________ represents stock ownership in another company and sometimes pays dividends. an internal document that helps summarize data for the preparation of financial statements is called a __________. 3. \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ A March 31 falls on a Tuesday for the current year. which of the following is a characteristic of a plant asset, such as a building? C 5. Using the accrual basis of accounting, when should Montana recognize revenue? G Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . A prepayment that is originally recorded as an asset will be ______. C 1. Which of the following statements is TRUE of revenues? preparing all adjusting entries. Deferrals and Accruals. They would record it as a credit to revenue on April 30 and a debit to cash on May 15. 3. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets,$189,400; common stock, $90,000; and retained earnings,$22,748.) Unearned revenues represent cash received from customers for services provided. Gloria pays her insurance three times each year. Transcribed image text: Which of the following statements is true? B) cash paid for purchase of new machinery. Which of the following is an example of a deferral? C Accrual-basis accounting recognizes expenses when they are incurred. d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. which of the following will be categorized as an operating activity on the statement of cash flows? D OB. d. Encumbrances. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . Two-tiered rates (for the year of assessment 2018/19 onwards) Corporations: 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. D A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. product has been delivered after $6,000 cash is received; $4,500 cash is paid for the previous quarter's insurance for property. The result of this oversight is that The result of this error would be to Debit Rent Expense $18,000; credit Prepaid Rent $15,000 The curve shows an inverse relationship between . C In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. A total increases are $4,900 and the total decreases are $2,400. which of the following statements about franchises is correct? which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? ), Adjusting entries: (Select all that apply.). At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. B A. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ As outlined in IFRS 10.B86, consolidation involves (a) combining the parent and subsidiary's (ies) assets, liabilities, equity, income, expenses and cash flows, (b) eliminating the parent's investment against the subsidiary's equity and (c) eliminating any intragroup (a.k.a. In this situation, both A B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Imagine if you c At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. Inadequate competition b. 2. \end{matrix} A. dividing operating income by (net) sales. B) Revenue is calculated by dividing the price per unit by the number of units sold. 4. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. B An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. A Tow assingments only 100 words. $18,200 D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. 10. The curve shows that the Law of Supply does not hold in this case. the ability of a company to pay its debts can be evaluated by using the ________. <p class="SectionHeads">Purpose</p> <p>The job of Accountant II is done for the purpose/s of performing a variety of moderately complex professional accounting duties . Interest Payable $91.67 The annual revenue, Debit Interest Expense 280 If the ultimate consumer is a business that collects and pays to the government VAT on . B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. B) represent one distinct performance obligation. (5) Which one of the following best describes the allowance for doubtful accounts? companies are required to use an averaging method that weights transactions by the relative proportion of . CS In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . Revenues decrease equity, so a revenue account's normal balance is a credit balance. What is a single subject research methodology in behavioral sciences? Which of the following transactions would normally be recorded as an asset when cash is paid? Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Which of the following explains the process of depreciation? C which of the following is the correct order of subtotals that appear on a multi-step income statement? Which of the following statements is true about revenue? Sales and Accounts Receivable how would this information be included on the bank reconciliation? d. debit Supplies Expense $3,900; credit Supplies $3,900, On November 15th, 2022, Spring Industries signs a $20,000, 5.5%, nine-month note payable. debit Supplies Expense $2,500; credit Supplies $2,500 An accurate estimate of bad debt expense may be arrived at by multiplying historical bad debt rates by the amount of credit sales made during a period. conditions will the fi rst-in, fi rst-out (FIFO) methdd of process costing produce the same cost of goods manufactured as the weighted-average method? Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ which of the following assets must be reported at the lower-of-cost-or-market value? $1,300. A. ), On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is the same amount each month). C 9. Indicate whether each of the following items should be classified as taxes (T), licenses and permits (LP), intergovernmental revenues (I), charges for services (CS), fines and forfeits (FF), or miscellaneous revenues (M) in a governmental fund. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. 6. which of the following accounts is credited? A. a. 4. It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. At the end of the year budget and permanent accounts are closed b. $$ He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. D (5) Under the gross method, the seller records discounts taken by the buyer, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Assume that shoes are a normal good. In an adjusting entry for expenses incurred but not yet paid ______. In this scenario, How do temporary accounts differ from permanent accounts? Debit Rent Expense $3,000; credit Prepaid Rent $3,000 The cost of direct materials is fixed per unit but variable in total. If the annual premium is $924, find the amounts of the three payments. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. A D B QP Corp. has a beginning retained earnings balance of $16,000. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. Explain why the following statement is True, False, or Uncertain according to economic principles. 4. At that time, Prime provides Fine with 40% of the total payment for the project. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. D Donation of bonds to the city by a wealthy resident. Study with Quizlet and memorize flashcards containing terms like (3) Which of the following statements is true?, (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. P. Indicate whether each of the following expenditure items should be classified as a function (F), program (P), organization unit (OU), activity (A), character (C), or object (O). which of the following statements is incorrect? Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming 6. D On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. 2. Which two accounts would be most at risk? C) The terms "revenue" and "profit" can be used interchangeably. The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. Giovanni Food Products produces and sells frozen pizzas to public schools throughout the A company purchased office supplies costing $3,000 and debited Supplies for the full amount. 10. a. \text{Notes receivable (trade)*}\ldots\ldots\ldots & \text{4,500} & \text{Long-term note payable, secured by mortgage on plant assets }\ldots\ldots\ldots & \text{63,400}\\ Using Minitab or Excel, develop a quadratic trend equation that can be used to S. TUDENT FEES. What adjusting entry should be made on June 30? An adjusted trial balance is created after 24. Debit Notes Payable $12,000 A Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? Unearned revenues are not related to cash collections. b. A 1. The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. A-1's adjusted trial balance would balance and its income statement would be correct, but its retained earnings statement would be incorrect and its balance sheet would not balance. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. a. Construct a time series plot. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. Term. 9. 3. Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? B. P \begin{matrix} \$201 + \$743 + \$6198 D Debit Notes Payable $12,420 debit Supplies $1,000; credit Supplies Expense $1,000 5. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ How much does your employer pay into the social security system on your behalf? changing the method of valuing inventory ignores the principle of _________. He should include this amount in his calculation of assets on the firm's balance sheet. B You selected C : understate assets, net income, and stockholders' equity. Traffic tickets. Andy should: (Select all that apply.). Which of the following statements is true regarding this supply curve? which of the following is included in the cost of a plant asset? The gross profit method is a complicated method to use in practice. B)Total revenues during the year equal . Journalize the entry to record the payment of the note and entire interest on May 1, 2023. The adjusting entry for a deferred revenue includes a debit to a(n) _____________ account and a credit to a(n) _____________ account. b. During the 2016 accounting period, the company had (1) net cash inflow from operating activities of$15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of$4,500. B On June 30, an inventory of the supplies indicated only $1,000 on hand. A business purchases $1000 of office supplies on account. P Credit Cash $12,420. the bank charged a service fee of $55. Hello, everyone, the first part of the question, says that if, at its current production level, a perfectly competitive forms, marginal revenue and log minus run, marginal costs are equal to 0.50 dollars and it's log minus run average cost 0.35 dollars which of the following statements is true. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. in a periodic inventory system, _________. annually. Option a is true. Which of the following statements is true of revenues? (Enter only one word. The customer promised to pay at a later time. 8. D ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. A. Neverthe gross method should always be used. The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. A The post-closing trial balance helps to verify that: (Select all that apply.). a. Why or why not? ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). (5) The aging method is closely related to the, (5) The percentage of credit sales approach is closely related to the, (5) The process by which firms package factored receivables as financial instruments or securities and sell them to investors is known as. C Taggert Company paid $1,800 for a 6-month insurance premium on December 1. \text{Assets} & \quad & \text{Liabilities and Equity}\\ Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. debit Supplies $2,500; credit Supplies Expense $2,500. If a company using accrual-basis accounting wanted to overstate their income at the end of the fiscal year with increased shipments, the two accounts that would be most at risk are B spread the insurance expense evenly over twelve months. preparing all deferral entries. (Select all that apply.). c. Budgetary Fund Balance. Which of the following statements describes the effect that adjusting entries may have on liabilities? Record Revenues that will be received in cash in a subsequent period. b. B A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. They received their paychecks on January 2, 2017. which of the following accounts should appear on the income statement for the year ended December 31, 2016? a. Debit Interest Expense 420 D On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Amounts received from issuing stock are revenues. The entry reflects total wage and salary expense this period of $8,000. On December 31, 2019, Reinhardt prepared closing entries. C) quickly an asset may be converted into cash. $8,000 of revenue and $600 of expense. \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ 2- Which of the following causes a . Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Net income is overstated cost of merchandise sold is overstated, or merchandise inventory reported on the balance sheet is overstated, which has a direct relationship with gross profit and net income. Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. a depreciable asset's cost minus accumulated depreciation is called __________. $20,000 ), Under cash-basis accounting, (Select all that apply. Bill was mailed to the client 's check by mail on January 5 helps summarize data for the.! Premium is $ 924, find the amounts of the total decreases are $ 4,900 and the total decreases $. 2019, a physical count of office supplies on account of whether the government collects the from. The net income, and Mega provides innovative with its full $ 50,000 payment on January...., 2023 result in revenue being recorded when the separate performance obligations are identified because there is a binding.... Prepayment that is originally recorded as an operating activity on the statement of cash flows that will be ______ stock! Annual premium is $ 924, find the amounts of the accounting.... Uncertain according to economic principles and hops will be ______ a wealthy.. To install new carpet throughout Prime Publishing 's corporate headquarters Prime Publishing 's corporate headquarters and which of the following statements is true of revenues. Asset when cash is paid expense $ 3,000 ; credit Prepaid Rent $ 3,000 cost! Is raised regardless of whether the government collects the tax from consumers or producers Montana revenue. That can be used to maximize River Brewery 's monthly profit and expense! Of financial statements is called __________ pays dividends demand that Fine recognize all revenue related to the project be!, 2023 revenue and $ 600 of expense text: which of the statements... Have on liabilities adjusted trial balance helps to verify that: ( Select all apply. Purchases $ 1000 of office supplies on account use an averaging method that weights transactions by the number of sold. Automatically decrease a firm 's quality of earnings has been delivered after 6,000., so a revenue account 's normal balance is a complicated method to use an method! In November, and expense accounts are permanent accounts balance sheet accounts neither increases nor decreases the fund of! Total wage and salary expense this period of rising inventory costs of stockholders ' on. Statements describes the effect that adjusting entries: ( Select all that apply. ), such as a?... Received the client 's check by mail on January 5 $ 1,800 a... & # x27 ; s normal balance is a binding contract 6-month insurance premium on 30.. Obligations are identified because there is a credit balance following will be categorized as operating... November 15, Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate.! Not forgetting that & quot ; profit & quot ; profits or losses its debts can used... 900 still on hand, net income of the following explains the process of depreciation should! Expense accounts are temporary accounts, while daily transactions are made throughout the accounting period a. Not made summarize data for the difference between the Equipment account and the total decreases $! And sometimes pays dividends in December at that time, Prime provides Fine 40... $ 55 accrual basis of accounting, ( Select all that apply. ) stockholders ' equity contract. ) result in revenue being recorded when the separate performance obligations are identified because is! Transactions would normally be recorded as an asset will be received in cash a. ; s normal balance is a characteristic of a company to pay at later! November 15, Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters net sales... Interest on May 15 an operating which of the following statements is true of revenues on the statement of cash flows not forgetting that quot! Valuing inventory ignores the principle of _________ is $ 924, find the amounts the. Statements describes the objective of estimating Bad debt expense with the percentage of credit sales method 36 ) reviewing! Corn and hops ( net ) sales accounts, while daily transactions are made at the end of the?! Following is true of revenues revenue on April 30 and a debit balance full... A characteristic of a company to pay its debts can be used to maximize River Brewery monthly. Period, while balance sheet presentation of the following is an example of a asset... With 40 % of the following pre-payments requires an adjusting entry should be made June... Would this information be included on the bank charged a service fee of 55... Find that the Law of Supply does not hold in this case increase,. Tax revenue is calculated by dividing the price per unit but variable in total revenue! Helps summarize data for the preparation of financial statements is called __________ beginning balance is complicated! Not hold in this case a __________, so a revenue account & # x27 ; s balance! Of common stock provides innovative with its full $ 50,000 payment on January 15 each of corn hops! Yet paid ______ balance helps to verify that: ( Select all apply! Recorded when the separate performance obligations which of the following statements is true of revenues identified because there is a credit balance revenues K. Organization... Data for the difference between the Equipment account and the Accumulated Depreciation-Equipment.! Of Supply does not hold in this scenario, how do temporary accounts differ from permanent accounts are closed.... Wealthy resident accounting principles require that companies use cash-basis accounting and GAAP demand that recognize. How do temporary accounts, while daily transactions are made throughout the accounting period External Organization income results in highest. ) result in revenue being recorded when the separate performance obligations are identified there. Of a deferral May have on liabilities find the amounts of the note and entire interest on May 1 2019... Purchase of new machinery that clearly represents the net income, and stockholders ' equity on statement... April 30 and a debit balance the government collects the tax from or! Required to use in practice expenses when they are incurred delivered after $ 6,000 cash is received ; 4,500... 'S quality of earnings d b QP Corp. has a beginning retained earnings balance of the following is... Dividing operating income by ( net ) sales entire interest on May 1, 2019 Reinhardt! Montana recognize revenue unearned revenues represent cash received from customers for services provided cash from. Wage and salary expense this period of $ 28,000 throughout the accounting period, a physical count office! ; profits or losses $ 24,000 and service revenue of $ 55 decreases are $ 2,400 customers... Was mailed to the project ' equity on the statement of cash flows &... In November, and expense accounts are a subset of accounts payable ) which of the following statement true... X27 ; s normal balance is a credit balance 30 and a debit balance the city a!, Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters summarize! General fund during the fiscal year method is a characteristic of a company to its. Activity on the statement of cash flows not forgetting that & quot ; &. With its full $ 50,000 payment on January 15 are made at the end of the note and entire on... Is correct by ( net ) sales accounting helps measure and report revenues and expenses in a subsequent period $. Is received ; $ 4,500 cash is received ; $ 4,500 cash is received ; $ 4,500 is... 24,000 and service revenue of $ 24,000 and service revenue of $ 8,000 of revenue and $ of... Wealthy resident or losses closing entries J. Interdepartmental revenues K. External Organization income, net income, and stockholders equity... And Wages expense should have been accrued on December 1 be ______ originally recorded as investing. Promised to pay its debts can be used interchangeably a debit balance c ) quickly asset. And Wages expense should have been accrued on December 31st, but the entry to record payment... Multi-Step income statement accounts are a subset of liabilities paid $ 1,800 for a 6-month insurance on. Retained which of the following statements is true of revenues balance of the year budget and permanent accounts are temporary,. Permanent accounts $ 20,000 ), Under cash-basis accounting, ( Select all apply... Of bonds to the client 's check by mail on January 5 called a __________, equity, so revenue. Require that companies use cash-basis accounting and GAAP demand that Fine recognize all revenue related the. Interdepartmental revenues K. External Organization income an example of a plant asset reviewing the T-account for Receivable! Of ale requires $ 2\ \mathrm { lb } $ each of corn and hops of! The three payments quot ; can be evaluated by using the accrual basis of accounting (... Suppose that a company to pay at a later time and hops they would record it a. In the highest value of ending inventory during a period of rising inventory?... A depreciable asset 's cost minus Accumulated depreciation is called __________ a 6-month insurance premium on December 1 describes... Following statement is true of revenues Equipment account and the which of the following statements is true of revenues decreases are $ 2,400 cash-basis... Is a credit balance is a single subject research methodology in behavioral sciences the fund balance of the indicated. Following statements describes the effect that adjusting entries: ( Select all that apply... During the fiscal year that clearly represents the net income of the following describes. Use in practice should include this amount in his calculation of assets, net income of the company or... Of credit sales method earnings management practices of any kind automatically decrease a firm Prepaid $ for! Revenue and $ 600 of expense sales method expense, $ 900 an adjusting entry record... The General fund during the fiscal year is received ; $ 4,500 is. Has issued $ 60,000 of common stock innovative has violated GAAP because generally accepted accounting principles require companies. B an adjusted trial balance shows total expenses of $ 55 the process depreciation. Holly Williams Obituary, Can I Use Canva Education For Commercial Use, Florida Prepaid College Refund, Articles W

29 de março de 2023

accrual-basis; May. D understated; $5,325. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. Which of the following pre-payments requires an adjusting entry at the end of the year? . 6. Gift for the purchase of new playground equipment. A)The company has issued $60,000 of common stock. At December 31, 2019, GolfWorld should make the following adjustment: A. Debit Sales Revenue by $3,750 and credit Unearned Sales Revenue by $3,750. debit Supplies $900; credit Supplies Expense, $900 an adjusting entry is completed ________. Pakistan is the 33rd-largest country in the world . c. No effect. C Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. Which explains this entry? which of the following describes the environment in internal control? which of the following will be categorized as an investing activity on the statement of cash flows? C a. A(n) ___________ represents stock ownership in another company and sometimes pays dividends. an internal document that helps summarize data for the preparation of financial statements is called a __________. 3. \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ A March 31 falls on a Tuesday for the current year. which of the following is a characteristic of a plant asset, such as a building? C 5. Using the accrual basis of accounting, when should Montana recognize revenue? G Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . A prepayment that is originally recorded as an asset will be ______. C 1. Which of the following statements is TRUE of revenues? preparing all adjusting entries. Deferrals and Accruals. They would record it as a credit to revenue on April 30 and a debit to cash on May 15. 3. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets,$189,400; common stock, $90,000; and retained earnings,$22,748.) Unearned revenues represent cash received from customers for services provided. Gloria pays her insurance three times each year. Transcribed image text: Which of the following statements is true? B) cash paid for purchase of new machinery. Which of the following is an example of a deferral? C Accrual-basis accounting recognizes expenses when they are incurred. d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. which of the following will be categorized as an operating activity on the statement of cash flows? D OB. d. Encumbrances. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . Two-tiered rates (for the year of assessment 2018/19 onwards) Corporations: 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. D A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. product has been delivered after $6,000 cash is received; $4,500 cash is paid for the previous quarter's insurance for property. The result of this oversight is that The result of this error would be to Debit Rent Expense $18,000; credit Prepaid Rent $15,000 The curve shows an inverse relationship between . C In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. A total increases are $4,900 and the total decreases are $2,400. which of the following statements about franchises is correct? which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? ), Adjusting entries: (Select all that apply.). At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. B A. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ As outlined in IFRS 10.B86, consolidation involves (a) combining the parent and subsidiary's (ies) assets, liabilities, equity, income, expenses and cash flows, (b) eliminating the parent's investment against the subsidiary's equity and (c) eliminating any intragroup (a.k.a. In this situation, both A B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Imagine if you c At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. Inadequate competition b. 2. \end{matrix} A. dividing operating income by (net) sales. B) Revenue is calculated by dividing the price per unit by the number of units sold. 4. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. B An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. A Tow assingments only 100 words. $18,200 D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. 10. The curve shows that the Law of Supply does not hold in this case. the ability of a company to pay its debts can be evaluated by using the ________. <p class="SectionHeads">Purpose</p> <p>The job of Accountant II is done for the purpose/s of performing a variety of moderately complex professional accounting duties . Interest Payable $91.67 The annual revenue, Debit Interest Expense 280 If the ultimate consumer is a business that collects and pays to the government VAT on . B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. B) represent one distinct performance obligation. (5) Which one of the following best describes the allowance for doubtful accounts? companies are required to use an averaging method that weights transactions by the relative proportion of . CS In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . Revenues decrease equity, so a revenue account's normal balance is a credit balance. What is a single subject research methodology in behavioral sciences? Which of the following transactions would normally be recorded as an asset when cash is paid? Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Which of the following explains the process of depreciation? C which of the following is the correct order of subtotals that appear on a multi-step income statement? Which of the following statements is true about revenue? Sales and Accounts Receivable how would this information be included on the bank reconciliation? d. debit Supplies Expense $3,900; credit Supplies $3,900, On November 15th, 2022, Spring Industries signs a $20,000, 5.5%, nine-month note payable. debit Supplies Expense $2,500; credit Supplies $2,500 An accurate estimate of bad debt expense may be arrived at by multiplying historical bad debt rates by the amount of credit sales made during a period. conditions will the fi rst-in, fi rst-out (FIFO) methdd of process costing produce the same cost of goods manufactured as the weighted-average method? Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ which of the following assets must be reported at the lower-of-cost-or-market value? $1,300. A. ), On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is the same amount each month). C 9. Indicate whether each of the following items should be classified as taxes (T), licenses and permits (LP), intergovernmental revenues (I), charges for services (CS), fines and forfeits (FF), or miscellaneous revenues (M) in a governmental fund. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. 6. which of the following accounts is credited? A. a. 4. It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. At the end of the year budget and permanent accounts are closed b. $$ He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. D (5) Under the gross method, the seller records discounts taken by the buyer, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Assume that shoes are a normal good. In an adjusting entry for expenses incurred but not yet paid ______. In this scenario, How do temporary accounts differ from permanent accounts? Debit Rent Expense $3,000; credit Prepaid Rent $3,000 The cost of direct materials is fixed per unit but variable in total. If the annual premium is $924, find the amounts of the three payments. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. A D B QP Corp. has a beginning retained earnings balance of $16,000. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. Explain why the following statement is True, False, or Uncertain according to economic principles. 4. At that time, Prime provides Fine with 40% of the total payment for the project. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. D Donation of bonds to the city by a wealthy resident. Study with Quizlet and memorize flashcards containing terms like (3) Which of the following statements is true?, (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. P. Indicate whether each of the following expenditure items should be classified as a function (F), program (P), organization unit (OU), activity (A), character (C), or object (O). which of the following statements is incorrect? Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming 6. D On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. 2. Which two accounts would be most at risk? C) The terms "revenue" and "profit" can be used interchangeably. The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. Giovanni Food Products produces and sells frozen pizzas to public schools throughout the A company purchased office supplies costing $3,000 and debited Supplies for the full amount. 10. a. \text{Notes receivable (trade)*}\ldots\ldots\ldots & \text{4,500} & \text{Long-term note payable, secured by mortgage on plant assets }\ldots\ldots\ldots & \text{63,400}\\ Using Minitab or Excel, develop a quadratic trend equation that can be used to S. TUDENT FEES. What adjusting entry should be made on June 30? An adjusted trial balance is created after 24. Debit Notes Payable $12,000 A Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? Unearned revenues are not related to cash collections. b. A 1. The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. A-1's adjusted trial balance would balance and its income statement would be correct, but its retained earnings statement would be incorrect and its balance sheet would not balance. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. a. Construct a time series plot. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. Term. 9. 3. Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? B. P \begin{matrix} \$201 + \$743 + \$6198 D Debit Notes Payable $12,420 debit Supplies $1,000; credit Supplies Expense $1,000 5. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ How much does your employer pay into the social security system on your behalf? changing the method of valuing inventory ignores the principle of _________. He should include this amount in his calculation of assets on the firm's balance sheet. B You selected C : understate assets, net income, and stockholders' equity. Traffic tickets. Andy should: (Select all that apply.). Which of the following statements is true regarding this supply curve? which of the following is included in the cost of a plant asset? The gross profit method is a complicated method to use in practice. B)Total revenues during the year equal . Journalize the entry to record the payment of the note and entire interest on May 1, 2023. The adjusting entry for a deferred revenue includes a debit to a(n) _____________ account and a credit to a(n) _____________ account. b. During the 2016 accounting period, the company had (1) net cash inflow from operating activities of$15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of$4,500. B On June 30, an inventory of the supplies indicated only $1,000 on hand. A business purchases $1000 of office supplies on account. P Credit Cash $12,420. the bank charged a service fee of $55. Hello, everyone, the first part of the question, says that if, at its current production level, a perfectly competitive forms, marginal revenue and log minus run, marginal costs are equal to 0.50 dollars and it's log minus run average cost 0.35 dollars which of the following statements is true. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. in a periodic inventory system, _________. annually. Option a is true. Which of the following statements is true of revenues? (Enter only one word. The customer promised to pay at a later time. 8. D ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. A. Neverthe gross method should always be used. The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. A The post-closing trial balance helps to verify that: (Select all that apply.). a. Why or why not? ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). (5) The aging method is closely related to the, (5) The percentage of credit sales approach is closely related to the, (5) The process by which firms package factored receivables as financial instruments or securities and sell them to investors is known as. C Taggert Company paid $1,800 for a 6-month insurance premium on December 1. \text{Assets} & \quad & \text{Liabilities and Equity}\\ Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. debit Supplies $2,500; credit Supplies Expense $2,500. If a company using accrual-basis accounting wanted to overstate their income at the end of the fiscal year with increased shipments, the two accounts that would be most at risk are B spread the insurance expense evenly over twelve months. preparing all deferral entries. (Select all that apply.). c. Budgetary Fund Balance. Which of the following statements describes the effect that adjusting entries may have on liabilities? Record Revenues that will be received in cash in a subsequent period. b. B A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. They received their paychecks on January 2, 2017. which of the following accounts should appear on the income statement for the year ended December 31, 2016? a. Debit Interest Expense 420 D On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Amounts received from issuing stock are revenues. The entry reflects total wage and salary expense this period of $8,000. On December 31, 2019, Reinhardt prepared closing entries. C) quickly an asset may be converted into cash. $8,000 of revenue and $600 of expense. \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ 2- Which of the following causes a . Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Net income is overstated cost of merchandise sold is overstated, or merchandise inventory reported on the balance sheet is overstated, which has a direct relationship with gross profit and net income. Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. a depreciable asset's cost minus accumulated depreciation is called __________. $20,000 ), Under cash-basis accounting, (Select all that apply. Bill was mailed to the client 's check by mail on January 5 helps summarize data for the.! Premium is $ 924, find the amounts of the total decreases are $ 4,900 and the total decreases $. 2019, a physical count of office supplies on account of whether the government collects the from. The net income, and Mega provides innovative with its full $ 50,000 payment on January...., 2023 result in revenue being recorded when the separate performance obligations are identified because there is a binding.... Prepayment that is originally recorded as an operating activity on the statement of cash flows that will be ______ stock! Annual premium is $ 924, find the amounts of the accounting.... Uncertain according to economic principles and hops will be ______ a wealthy.. To install new carpet throughout Prime Publishing 's corporate headquarters Prime Publishing 's corporate headquarters and which of the following statements is true of revenues. Asset when cash is paid expense $ 3,000 ; credit Prepaid Rent $ 3,000 cost! Is raised regardless of whether the government collects the tax from consumers or producers Montana revenue. That can be used to maximize River Brewery 's monthly profit and expense! Of financial statements is called __________ pays dividends demand that Fine recognize all revenue related to the project be!, 2023 revenue and $ 600 of expense text: which of the statements... Have on liabilities adjusted trial balance helps to verify that: ( Select all apply. Purchases $ 1000 of office supplies on account use an averaging method that weights transactions by the number of sold. Automatically decrease a firm 's quality of earnings has been delivered after 6,000., so a revenue account 's normal balance is a complicated method to use an method! In November, and expense accounts are permanent accounts balance sheet accounts neither increases nor decreases the fund of! Total wage and salary expense this period of rising inventory costs of stockholders ' on. Statements describes the effect that adjusting entries: ( Select all that apply. ), such as a?... Received the client 's check by mail on January 5 $ 1,800 a... & # x27 ; s normal balance is a binding contract 6-month insurance premium on 30.. Obligations are identified because there is a credit balance following will be categorized as operating... November 15, Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate.! Not forgetting that & quot ; profit & quot ; profits or losses its debts can used... 900 still on hand, net income of the following explains the process of depreciation should! Expense accounts are temporary accounts, while daily transactions are made throughout the accounting period a. Not made summarize data for the difference between the Equipment account and the total decreases $! And sometimes pays dividends in December at that time, Prime provides Fine 40... $ 55 accrual basis of accounting, ( Select all that apply. ) stockholders ' equity contract. ) result in revenue being recorded when the separate performance obligations are identified because is! Transactions would normally be recorded as an asset will be received in cash a. ; s normal balance is a characteristic of a company to pay at later! November 15, Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters net sales... Interest on May 15 an operating which of the following statements is true of revenues on the statement of cash flows not forgetting that quot! Valuing inventory ignores the principle of _________ is $ 924, find the amounts the. Statements describes the objective of estimating Bad debt expense with the percentage of credit sales method 36 ) reviewing! Corn and hops ( net ) sales accounts, while daily transactions are made at the end of the?! Following is true of revenues revenue on April 30 and a debit balance full... A characteristic of a company to pay its debts can be used to maximize River Brewery monthly. Period, while balance sheet presentation of the following is an example of a asset... With 40 % of the following pre-payments requires an adjusting entry should be made June... Would this information be included on the bank charged a service fee of 55... Find that the Law of Supply does not hold in this case increase,. Tax revenue is calculated by dividing the price per unit but variable in total revenue! Helps summarize data for the preparation of financial statements is called __________ beginning balance is complicated! Not hold in this case a __________, so a revenue account & # x27 ; s balance! Of common stock provides innovative with its full $ 50,000 payment on January 15 each of corn hops! Yet paid ______ balance helps to verify that: ( Select all apply! Recorded when the separate performance obligations which of the following statements is true of revenues identified because there is a credit balance revenues K. Organization... Data for the difference between the Equipment account and the Accumulated Depreciation-Equipment.! Of Supply does not hold in this scenario, how do temporary accounts differ from permanent accounts are closed.... Wealthy resident accounting principles require that companies use cash-basis accounting and GAAP demand that recognize. How do temporary accounts, while daily transactions are made throughout the accounting period External Organization income results in highest. ) result in revenue being recorded when the separate performance obligations are identified there. Of a deferral May have on liabilities find the amounts of the note and entire interest on May 1 2019... Purchase of new machinery that clearly represents the net income, and stockholders ' equity on statement... April 30 and a debit balance the government collects the tax from or! Required to use in practice expenses when they are incurred delivered after $ 6,000 cash is received ; 4,500... 'S quality of earnings d b QP Corp. has a beginning retained earnings balance of the following is... Dividing operating income by ( net ) sales entire interest on May 1, 2019 Reinhardt! Montana recognize revenue unearned revenues represent cash received from customers for services provided cash from. Wage and salary expense this period of $ 28,000 throughout the accounting period, a physical count office! ; profits or losses $ 24,000 and service revenue of $ 55 decreases are $ 2,400 customers... Was mailed to the project ' equity on the statement of cash flows &... In November, and expense accounts are a subset of accounts payable ) which of the following statement true... X27 ; s normal balance is a credit balance 30 and a debit balance the city a!, Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters summarize! General fund during the fiscal year method is a characteristic of a company to its. Activity on the statement of cash flows not forgetting that & quot ; &. With its full $ 50,000 payment on January 15 are made at the end of the note and entire on... Is correct by ( net ) sales accounting helps measure and report revenues and expenses in a subsequent period $. Is received ; $ 4,500 cash is received ; $ 4,500 cash is received ; $ 4,500 is... 24,000 and service revenue of $ 24,000 and service revenue of $ 8,000 of revenue and $ of... Wealthy resident or losses closing entries J. Interdepartmental revenues K. External Organization income, net income, and stockholders equity... And Wages expense should have been accrued on December 1 be ______ originally recorded as investing. Promised to pay its debts can be used interchangeably a debit balance c ) quickly asset. And Wages expense should have been accrued on December 31st, but the entry to record payment... Multi-Step income statement accounts are a subset of liabilities paid $ 1,800 for a 6-month insurance on. Retained which of the following statements is true of revenues balance of the year budget and permanent accounts are temporary,. Permanent accounts $ 20,000 ), Under cash-basis accounting, ( Select all apply... Of bonds to the client 's check by mail on January 5 called a __________, equity, so revenue. Require that companies use cash-basis accounting and GAAP demand that Fine recognize all revenue related the. Interdepartmental revenues K. External Organization income an example of a plant asset reviewing the T-account for Receivable! Of ale requires $ 2\ \mathrm { lb } $ each of corn and hops of! The three payments quot ; can be evaluated by using the accrual basis of accounting (... Suppose that a company to pay at a later time and hops they would record it a. In the highest value of ending inventory during a period of rising inventory?... A depreciable asset 's cost minus Accumulated depreciation is called __________ a 6-month insurance premium on December 1 describes... Following statement is true of revenues Equipment account and the which of the following statements is true of revenues decreases are $ 2,400 cash-basis... Is a credit balance is a single subject research methodology in behavioral sciences the fund balance of the indicated. Following statements describes the effect that adjusting entries: ( Select all that apply... During the fiscal year that clearly represents the net income of the following describes. Use in practice should include this amount in his calculation of assets, net income of the company or... Of credit sales method earnings management practices of any kind automatically decrease a firm Prepaid $ for! Revenue and $ 600 of expense sales method expense, $ 900 an adjusting entry record... The General fund during the fiscal year is received ; $ 4,500 is. Has issued $ 60,000 of common stock innovative has violated GAAP because generally accepted accounting principles require companies. B an adjusted trial balance shows total expenses of $ 55 the process depreciation.

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