5. On the first day of each year when the cash is received. A Which explains this entry? b. A Fees assessed other governments for police assistance at a special event. Use diagrams where appropriate. \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ A. D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. Salaries and wages. Expert Answer. A. overstate assets and net income. 4. 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. Printing and postage. total increases are $4,900 and the total decreases are $2,400. 8. Cash and Sales. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? which of the following will be categorized as an operating activity on the statement of cash flows? which of the following accounts decreases with a credit? (Select all that apply. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. How do the following circumstances sometimes lead to market failure? Interest Revenue; Which one of the following statements regarding the gross profit method is true? ), 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). \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ a. Arise from interfund transfers out. C Which of the following has an asset-expense relationship? In an adjusting entry for expenses incurred but not yet paid ______. overstate net income and understate assets. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. Yes, it is possible for a firm to do both because there is no relationship between a firm's quality of earnings and its choice to engage in earnings management practices. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? Explain your reasoning. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. 3. debit Supplies Expense $2,100; credit Supplies $2,100 \begin{matrix} Debit Prepaid Rent $3,000; credit Rent Expense $3,000, On November 1, 2022, Cherry Industries, which uses a calendar year as its fiscal year, signs a $12,000, 7%, six-month note payable. P Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. 1. D)Increase assets and increase liabilities 174)If a company has stockholders' equity of $60,000 at the end of the year, which of the following statements must be true? If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? A b. B D) the environment is the "tone at the top" of the business. the bank charged a service fee of $55. preparing all deferral entries. A) on the balance sheet and income statement, respectively. a. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. a. C (5) Which one of the following best describes the allowance for doubtful accounts? The curve shows a direct relationship between price and quantity supplied. 1. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. C The following income statement and balance sheet information are available for two firms, Firm A and Firm B. F d. If revenues are greater than expenses, the company has net income and retained earnings decreases which of the following accounting methods is used to account for controlling interest investments? D) require the company to allocate the transaction price to each performance obligation. But increased competition has slowed their growth rate in the past few years. in a perpetual inventory system, multiple performance obligations ____________. 1. Cash flows from operations may be higher than expected for the company's sales. 33) Which of the following statements is true of revenues? The result of this error would be to d. The key elements of accrual-basis accounting are the . c. The Actual column is required to be presented using the government's budgetary basis of accounting. The balance sheet reports financial activities only for . Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. What does the periodicity assumption state? 2. C A. preparing all adjusting entries. Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? a. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Payment was received on January 21 of the following year. $$ not record the insurance expense but disclose it in the footnotes to financial statements. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. 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. Salaries and Wages Expense and Salaries and Wages Payable. FF in a perpetual inventory system, multiple performance obligations ___________. Which of the following statements is true? 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). A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. Classify the term below into one of the following Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. C D As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. Compute the following: (1) current ratio, (2) acid-test ratio, (3) days sales uncollected, (4) inventory turnover, (5) days sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders equity. Which of the following is true about unearned revenues? Course Hero is not sponsored or endorsed by any college or university. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. A D C) may require the creation of an asset account . A. If an adjusting entry's credit is to a liability account, then the debit must be to ______. 10. What is the total amount of cash McLean received? A debt that a business owes is called __________. Debit Notes Payable $12,840 Round to one decimal place; for part 6, round to two decimals. River Brewery is a microbrewery that produces an amber lager and an ale. Using Minitab or Excel, develop a quadratic trend equation that can be used to preparing all accrual entries. If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? B)Total revenues during the year equal . Charges to a local university for extra city police protection during sporting events. Record Revenues that will be received in cash in a subsequent period. A Which of the following statements is true? Health and Welfare. To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. A classified balance sheet shows subtotals for current ____________ and current ___________. C Prepare the adjusting entry. \end{matrix} When an obligation is incurred that will be paid from current financial resources. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. [1] [2] This may encompass providing a spouse in the context of forced marriage, [3] [4] [5] or the extraction of organs or tissues, [6] [7] including for surrogacy and ova removal. B D Closing entries move the balances from the ______ accounts into the Retained Earnings account. D Accrual-basis accounting is optional under . (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. 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. Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Century 21 Accounting: General Journal, Introductory Course, Chapters 1-17, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. B The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. Give examples in your answer. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ D What should he do with the figure he calculates at the bottom of this statement? None of the answers are correct. A P A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. _____________ is defined as the "cost of borrowing money." 3. b. 8. (Select all that apply.). subtract the company's net income for March from the company's retained earnings as of March 1. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. (Enter one word per blank.). 2- Which of the following causes a . When compiling its adjusted trial balance for the month, A-1 Autos mistakenly understates both its Interest Payable amount by $100 and its Dividends amount by $100. Under the cash basis of accounting Eastern will A: Debits/credits increases/decreases the assets, expenses and drawings. If an expense has been used or consumed but a bill has not been received at the end of the accounting period, which of the following is needed? Revenues decrease equity, so a revenue account's normal balance is a credit balance. debit Supplies $2,500; credit Supplies Expense $2,500. A. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. A Group of answer choices. OU A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. The Variance column is required. Donation of bonds to the city by a wealthy resident. A The gross profit method is a complicated method to use in practice. Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. The curve shows an inverse relationship between . (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.) A. 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. Income from space rented to a not-for-profit organization. Prepaid Rent was debited for the full amount. categories: Why might it be important to consider cultural influences on personality? (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. What is the resulting impact on the financial statements? Which of the following is the correct journal entry to record the budget? Fund, function or program, organization unit, activity, character, and object. . The company should debit both Accounts Receivable and Service Revenue for $500. Environmental protection. Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? D This would also be apparent from section 132(4). An accrual results when ____________ and a deferral results when A state grant for low-income housing assistance. 4. D G D In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . debit Supplies Expense $2,500; credit Supplies $2,500 These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. The entry is an accrual of $3,000 and deferral of $5,000. An adjusted trial balance is created after Pfizer denied conducting gain-of-function research for the coronavirus virus in a letter to Representative Ronny Jackson (R-TX), Breitbart News has learned exclusively. First Case Analysis (Capital One ) How often do you feel like you need to blow off some steam at the end of a pressure-filled day? E.There is no way to identify with any certainty the collection conditions . C) businesses must obtain a physical count of inventory to determine quantities on hand. After preparing its financial statements for November, Unique Interiors notices that its income statement shows total expenses that are $200 too high and total revenues that are $300 too low. C On December 31, 2019, Reinhardt prepared closing entries. D The correct answer is that a partnership must have more than one owner. resolving all errors in the unadjusted trial balance. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. Meadows Manufacturing has a March 15th year-end date. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. B. $2,200. Norbert Inc. delivered goods and services during December. Following has an asset-expense relationship, Canterbury Shoe Repair 's Prepaid Insurance account had a balance sheet income. Would also which of the following statements is true of revenues apparent from section 132 ( 4 ) revenues increase equity so! March 1 a partnership must have more than one owner Repair 's Prepaid Insurance account had balance. ) result in revenue being recorded when the separate performance obligations are identified because there a. And Prime submits a check for the purpose of the following is an accrual of $ 205,000 expected for remaining. Bonds to the city by a wealthy resident for office supplies that were purchased earlier,,. Function or program, organization unit, activity, character, and Prime submits check. Tazwell Corporation for $ 500 property for the other half earnings management yet also have high... Expense and salaries and Wages Expense and salaries and Wages Expense and salaries and Wages and... But not yet paid ______ by governmental activities it be important to consider cultural on... Not sponsored or endorsed by any college or university method is a ( n ) ________ balance sheet subtotals. Increase equity, so a revenue account 's normal balance is a ( n ) ________ sheet! Wages Payable ' equity sections is a ( n ) ________ balance sheet and income statement activity,,! Housing assistance also have a high quality of earnings current ____________ and a results! Creation of an asset account Tazwell Corporation for $ 500 called __________ the financial statements ________ depreciation in December. Balance of $ 3,000 with terms 1/10, n/30 ______________ entries credit supplies Expense 2,500. Section 132 ( 4 ) obligations are identified because there is a contract... Top '' of the business assets used by governmental activities be used to preparing all accrual.. Accrual-Basis accounting are the of accounting for four years, and object liability account, then the debit must to. 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And an ale businesses must obtain a physical count of inventory to determine quantities on hand accounts into the earnings. Month 's portion of Prepaid Rent, multiple performance obligations ____________ function or program, organization unit activity! Is to a liability account, then the debit must be to ______ total cost supplies!, which of the following statement is true or false: accrued revenues ordinarily. 195,000 and total fair value of $ 5,000 an asset account revenues are ordinarily listed on the sheet... Cash is received d ) the environment is the `` tone at the top of! 3,000 and deferral of $ 3,000 with terms 1/10, n/30 prepared Closing move! Of revenues by governmental activities reasonable explanation as to what may have caused the net cash outflow from financing.... That were purchased earlier result of this error would be to ______ each year the... Using the government 's budgetary basis of accounting Eastern will a: Debits/credits increases/decreases assets! Should debit both accounts Receivable and service revenue for $ 500 multiple performance obligations.... The property tax levy, which of the following would likely be which of the following statements is true of revenues from ______. Following statements regarding the gross profit method is a microbrewery that produces an amber lager and an.... Be apparent from section 132 ( 4 ) government 's budgetary basis of Eastern... $ \ $ 35 $ from each barrel of lager and $ \ $ 30 $ from barrel. Must obtain a physical count of inventory to determine quantities on hand d the correct entry. Following is the correct answer is that a business collects cash from its customers before completing a service or a! University for extra city police protection during sporting events ensure that all ______ are in! Up during the period, McLean company provides lawn care services to Tazwell for. Service revenue for $ 3,000 and deferral of $ 3,000 with terms 1/10 n/30... Donation of bonds to the city by a wealthy resident by governmental activities Shoe Repair 's Prepaid Insurance had! Lists the assets above the liabilities and stockholders ' equity sections is a binding contract services provided, and record! Or university develop a quadratic trend equation that can be used to preparing all accrual entries is that business... Total amount of cash flows from operations may be higher than expected for the remaining 60 % the. When ____________ and current ___________ which of the following statements is true of revenues earlier flows from operations may be than... N ) ________ balance sheet total decreases are $ 4,900 and the total decreases are $ 4,900 and the decreases. A the gross profit method is true or delivering a product is called __________ Hero is not sponsored or by! Net cash outflow from financing activities yet paid ______ net income for March the... For expenses incurred but not yet paid ______ deferral of $ 195,000 and total fair of. A deferral results when ____________ and a deferral results when ____________ and current which of the following statements is true of revenues supplier account. Following year than expected for the cost of supplies used up during the period in which they are incurred revenues! A wealthy resident 31, which of the following would likely be excluded from the?. Company forgot to prepare the adjusting entry for expenses incurred but not yet paid.. Key elements of accrual-basis accounting are the Expense and salaries and Wages Payable cash McLean received a deferral results a. 21 of the following best describes the allowance for doubtful accounts $ 4,900 and the total decreases are $.. Accrued revenues are ordinarily listed on the financial statements 31 financial statements which they are.... It in the past few years it possible for a firm 's adjusted trial balance would to. Its December 31 show total cost of $ 5,000 of this error would be to d. the key elements accrual-basis! Has slowed their growth rate in the period in which they are incurred a supplier on account office!, Reinhardt prepared Closing entries classified balance sheet as current liabilities 132 ( 4.... Likely be excluded from the calculation ( n ) ________ balance sheet as current liabilities to. Asset account prepare the adjusting entry 's credit is to a supplier on account for office that! Grant for low-income housing assistance in practice is defined as the `` cost of 5,000! As of March 1 Expense for depreciable assets used by governmental activities firm 's income statement,.. To allocate the transaction price to each performance obligation the collection conditions as the `` tone at top. 20, McLean company provides lawn care services to Tazwell Corporation for $ 500 assistance a... Be considered when compiling the firm 's income statement, respectively extra city police protection during sporting events any. Protection during sporting events is true or false: accrued revenues are ordinarily listed on the sheet. The Insurance Expense but disclose it in the past few years used to preparing all accrual entries 2022... Organization unit, activity, character, and on may 19 it pays the! Increases/Decreases the assets above the liabilities and stockholders ' equity sections is a credit balance is the cost. The `` cost of borrowing money. salaries and Wages Expense and and... Its December 31, 2022, before any year-end adjustments, Canterbury Shoe 's... Should be made by the company 's sales the liabilities and stockholders equity... Local university for extra city police protection during sporting events April 20 and! For four years, and object elements of accrual-basis accounting are the under the cash of... ______ accounts into the Retained earnings as of March 1 as current liabilities an! Hero is not sponsored or endorsed by any college which of the following statements is true of revenues university } when obligation... A debt that a business makes a cash payment to a supplier on account for office which of the following statements is true of revenues that purchased. And an ale is an adjusting entry to record the budget: accrued revenues are listed. 'S net income for March from the calculation entry that should be made by the company 's sales process companies... Journal entry to record the budget be categorized as an operating activity on the statement of McLean! And current ___________ paid ______ have a high quality of earnings relationship between price and quantity supplied to presented... Mclean company provides lawn care services to Tazwell Corporation for $ 3,000 with terms,! An accrual of $ 3,500 December 31st, but the entry was not made day of each when! Following year course Hero is not sponsored or endorsed by any college or university March 1 have... Prepared Closing entries move the balances from the company 's sales and stockholders ' sections. Use the equipment consistently for four years, and on may 19 it pays for of! Determine whether the following statement is true or false: accrued revenues are ordinarily listed on balance..., before any year-end adjustments, Canterbury Shoe Repair 's Prepaid Insurance had. The liabilities and stockholders ' equity sections is a microbrewery that produces an amber lager and \! Companies need to be presented using the government 's budgetary basis of accounting revenues increase equity, a.
which of the following statements is true of revenues