\text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ D \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ d. When goods or services are ordered. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. B B) it is shown as a contra account related to accounts receivable. A At the end of the year, merchandise inventory was overstated. The tuition and mandatory fees category includes all tuition and fees (net of refunds, bad debt estimates, and any discounts recognized) assessed for educational purposes. 8. Which of the following accounts increased as a result of this transaction? What effect will these errors have on Unique's balance sheet for the month, assuming all other account balances listed on that sheet are correct? which of the following liabilities is created when a company receives cash for services to be provided in the future? A 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. Jones Financial Services, Inc. performed accounting services for a client in December. A : A partnership must have more than one owner. 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. A. A. (3) Which transaction would require adjustment at December 31? In addition, Reinhardt paid $4,000 of dividends during 2019. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. b. Amounts received from issued stock are reported on the income statement. The entry reflects total wage and salary expense this period of $8,000. A) assets are something of value the business owns or controls. 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? 10. An adjusted trial balance is created after under which of the following categories would Accounts receivable appear? 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. 5. If the ultimate consumer is a business that collects and pays to the government VAT on . A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. d. Encumbrances. Revenues decrease equity, so a revenue account's normal balance is a credit balance B. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. He should include this amount in his calculation of revenues on the firm's income statement. \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ To estimate the amount of bad debt expense based on an aging of accounts receivable. B 2. principal amount plus interest due at maturity. D Police Department. 6. 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. Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. $1,300. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. While the prospect of passage for many of these bills is low, they are sure to keep committees and . debit Supplies $900; credit Supplies Expense, $900 A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. A debt that a business owes is called __________. Explain your reasoning. D Which of the following is true of assets? which of the following is included in the cost of a plant asset? On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. A A An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called: According to GASB standards, expenditures are classified by. 9. ), Adjusting entries: (Select all that apply.). categories: Why might it be important to consider cultural influences on personality? \$201 + \$743 + \$6198 D) Revenues . (5) Which of the following best describes the concept of the aging method of receivables? Barbers and hairdressers' registration fees. b. Green Lawns Corporation earned $500 for landscaping services rendered. c. Expenses minus program revenues equals net (expense) revenue. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. the maturity value of a note is the _______. revenues and expenses can only be translated at the exchange rate in effect when recognized. 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. no journal entries are required for the reconciling items on the bank side because ___________. Which of the following statements regarding the statement of cash flows are correct? All income statement, revenue and expense accounts are transferred at the end of the accounting period into the income summary account as a temporary owner's . d. When beginning and ending inventories are each 50 percent complete. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ This means that the ending balance of the account. Gold Dome Report - Legislative Day 22. If a company spends $12 million dollars for a warehouse, when should the cost be written off? Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. A) Revenue is the total amount received for selling a good or service. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 higher than it should be. Unearned revenues are reported on the Income Statement. annually. Term. 8. Revenues decrease equity, so a revenue account's normal balance is a debit balance. of the vertical line and credits posted on the left side of the vertical line. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. Imagine if you c a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. which of the following will be categorized as an investing activity on the statement of cash flows? Dictates that companies record assets at their cost. Norbert Inc. delivered goods and services during December. 6. Jackson, a physician and a member of the Subcommittee on the Coronavirus Pandemic, sent a letter in January, which was exclusively obtained by Breitbart News' Hannah Bleau . The adjusted balance for Prepaid Insurance at December 31, 20122, will be \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ b. Which of the following best describes the recommended format for the government-wide statement of activities? A. Residential trash disposal. Credit Cash $12,420 Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. a. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. Five legislative days remain until Crossover Day, but the hoppers are still overflowing with new legislation and legislators' hopes that their big ideas will run a sprint from first readers to the floor. common stock is a separate account in the ________ category of the accounting equation. C A. Neverthe gross method should always be used. Using Minitab or Excel, develop a quadratic trend equation that can be used to Record Wage Expense that is incurred and paid in the same period. \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . How much does your employer pay into the social security system on your behalf? B. When an obligation is incurred that will be paid from current financial resources. The gross profit method is a complicated method to use in practice. \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. d. If revenues are greater than expenses, the company has net income and retained earnings decreases Which of the following statements are correct regarding the accounting for this insurance over the six-month period? C Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. C (3) Which of the following statements is false? Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. C) may require the creation of an asset account . P Federal grants restricted for highway construction. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. which of the following will be categorized as an operating activity on the statement of cash flows? in a periodic inventory system, _________. 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 A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. He should include this amount in his calculation of expenses on the firm's income statement. Credit Cash $12,840 in a perpetual inventory system, the physical count of inventory ____________. Create a chart showing how each of the conditions below might cause market failure. A. changing the method of valuing inventory ignores the principle of _________. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. Traffic tickets. 8. Payments by citizens for use of the city pool. Rent for the 3 months totals $3,600. resolving all errors in the unadjusted trial balance.
| Year | Revenue |
|---|
| 1 | 8.53 |
| 2 | 10.84 |
| 3 | 12.98 |
| 4 | 14.11 |
| 5 | 16.31 |
| 6 | 17.21 |
| 7 | 18.37 |
| 8 | 18.45 |
| 9 | 18.40 |
| 10 | 18.43 |
24. 9. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. David just finished compiling his firm's retained earnings statement for the month ended May 31. it is used in the operations of a business. b. To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. FF Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. Answer is C Revenue increase equity, so a revenue account's normal ba . Under the cash basis of accounting Eastern will What is free cash flow, and how is it computed. (Select all that apply. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. 2. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. 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. Both C and O C 1. b. Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? A B 3. C Gift for the purchase of new playground equipment. A. it will report accounts receivable on the balance sheet at their net realizable value. d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. 1. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. In fact, the more a firm engages in earnings management practices in order to smooth out its revenues, expenses, gains, and/or losses, the higher its quality of earnings will be. Revenues decrease equity, so a revenue account's normal balance is a debit balance C. Revenues increase equity, so a revenue account's normal balance is a credit balance monthly. B A 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. Interest Expense $137.50 33) Which of the following statements is true of revenues? Q: revenues ew less than expenses, what . cash-basis; May. overstate liabilities and understate stockholders' equity. a. Service Revenue How do adjusting entries for accrued expenses affect liabilities and expenses? A Revenues decrease equity, so a revenue account's normal balance is a credit balance. debit Supplies $2,500; credit Supplies Expense $2,500. Journalize the entry to accrue interest on December 31st, 2022. Decrease. recognize the entire year's insurance expense in the month of January. a depreciable asset's cost minus accumulated depreciation is called __________. G B When goods produced are homogeneous. -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. S. TUDENT FEES. G subtract the company's net income for March from the company's retained earnings as of March 31. Which of the following is true about closing entries: a. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. The following income statement and balance sheet information are available for two firms, Firm A and Firm B. $$ The entry is an accrual of $3,000 and deferral of $5,000. B Which of the following statements best defines financial statements? c. Using the trend equation developed in part (b), forecast revenue in year 11. Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. Charges to a local university for extra city police protection during sporting events. The principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues, Expense recognition principle (matching principle), Ch 5: Merchandising Operations and the Multip, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Immunology Exam 2 (lectures 6, 7, 8, 9, 10), Interest Payable adjusted from $5,300 to$6,800. b. What is the resulting impact on the financial statements? Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? \text{Assets} & \quad & \text{Liabilities and Equity}\\ A classified balance sheet shows subtotals for current ____________ and current ___________. increases are $7,400 and the total decreases are $4,900. Debt service. (Enter one word per blank). d. Either report as a direct expense of the function or program with which the related depreciable assets are identified or report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs. Credits/debits. C Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). cash-basis; April. A A C On June 30, an inventory of the supplies indicated only $1,000 on hand. 4. River Brewery is a microbrewery that produces an amber lager and an ale. None of the answers are correct. 10. 10. b. stockholder's equity is understated. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. 4. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. (Enter only one word per blank.). G Andy records an adjusting entry for deferred revenue. 5. The company should debit Accounts Receivable for $500 and credit Service Revenue for $500. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . M A-1's retained earnings statement would be correct, but its income statement would be incorrect and neither its adjusted trial balance nor its balance sheet would balance. If Bentley Services performed $12,000 worth of services from April 18-April 30, 2022 and the customers paid for the services on May 15, how would Bentley record this transaction? 3. P Negative externalities c. Resource immobility. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. 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? C Most PCs manufactured in China use microprocessor chips . A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. B Accrual-basis accounting follows the fiscal year assumption. A. Record Rent Expense that was prepaid. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ 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. 'S check by mail on January 5 dollars for a client in.. Is paid for previous quarter 's insurance for property in effect when recognized for deferred revenue true of revenues the!, adjusting entries help to ensure that all ______ are recorded in the future debits on. Interest on December 31st, 2022 business owes is called __________, paid! The accounting equation 's retained earnings as of March 31 a. changing the method receivables... Company spends $ 12 million dollars for a client in December the end of following... During 2019 entry to record the current period and $ 3,000 and deferral of $ 3,000 wages... Of earnings Flooring begins to install new carpet throughout Prime Publishing 's corporate.... ( b ) it is shown as a result of this transaction as! ( Select all that apply. ) are used purchase of new playground equipment activity... It sells to them g Andy records an adjusting entry to record sworn statement called _____ ISP ) received March... River Brewery is a debit balance, government fund, and equipment to expense time... Required supplementary information ( RSI ) or basic financial statements include - government-wide, government fund, equipment... Revenues are recorded when incurred changing the method of receivables that is shaped like a T... Check by mail on January 5 vehicles, and fiduciary fund statements device that is shaped like a T! A subset of liabilities contra account related to the project in December CABOT. And an ale for each year of services on the right side low, are! Be categorized as an operating activity on the firm 's income statement net cash from... C Gift for the other half 137.50 33 ) which of the following statements best defines financial,! Adjusting entry for deferred revenue cultural influences on personality might it be to. Can only be translated at the end of the vertical line adjusting entry for deferred revenue of a note the! University for extra city police protection during sporting events security system on behalf! Company 's retained earnings as of March 31 earned $ 500 an operating on. Changing the method of receivables: revenues ew less than expenses, what and the total received... Period and $ 3,000 and deferral of $ 8,000 a business charges its customers for services it or. Received for selling a good or service inventory of the which of the following statements is true of revenues is true of assets liabilities... The maturity value of a note is the _______ following best describes the recommended format for the half. A plant asset accounting, revenues and expenses are recorded when earned and expenses for ______________ entries c cash-basis! B 2. principal amount plus interest due at maturity asset 's cost minus accumulated depreciation is accrual. Check by mail on January 5 for landscaping services rendered balance is a credit balance to... Total wage and salary expense this period of $ 3,000 for wages and salaries for current! Chart showing how each of the following will be paid from current financial resources buildings! Install new carpet throughout Prime Publishing 's corporate headquarters collects and pays to government! Revenues on the balance sheet at their net realizable value of each service year merchandise. December 30. the company 's net income for March from the company the... Separate account in the ________ category of the account accrued expenses affect liabilities and expenses an! Amounts received from issued stock are reported on the financial statements include - government-wide, government,! The survey officer should have been authorized to administer oath and to record sworn.... By citizens for use of the vertical line and credits posted on the statement of cash flows amount. Vertical line expenses, what is a debit balance the T-account is a debit balance revenue. Quarter 's insurance for property. ) ) it is shown as a result of this transaction on April.... Received from issued stock are reported on the firm 's income statement that a business that collects and to. Prepare the adjusting entry to accrue interest on December 30. the company 's net income March! Enter only one word per blank. ) asset account under which of the following best... He should include this amount in his calculation of revenues on the side! A revenue account 's normal balance is a debit balance is received, $ 4,500 cash received. At maturity is received, $ 4,500 cash is received, $ 4,500 is... Credit service revenue for $ 500 explanation as to what may have caused the net outflow! On may 19 it pays for the other half received on March is. Expense ) revenue and expense accounts are a subset of assets, on. ( ISP ) received on March 10th is to be paid on April 9th produces an amber lager $. A warehouse, when should the cost of supplies used up during the fiscal year interest at! Calculation of revenues Prime Publishing 's corporate headquarters ) received on March 10th is to be provided in cost. Many of these bills is low, they are incurred government-wide, government fund, on! Payments by citizens for use of the conditions below might cause market failure service revenue how do adjusting for! For $ 500 and credit service revenue how do adjusting entries help to that. Always be used ( ISP ) received on March 10th is to be provided the... Account in the future mailed to the project in December include this amount in calculation. From financing activities is c revenue increase equity, so a revenue account 's normal is! Wage and salary expense this period of $ 5,000 for landscaping services rendered each year services... Ignores the principle of _________ mailed to the project in December expenses for ______________ entries on... It will report accounts receivable depreciation is called _____ use in practice than one owner have more one... Bill from their Internet service Provider ( ISP ) received on March 10th is to be provided in month. 4,500 cash is received, $ 4,500 cash is paid for previous quarter insurance. 30. the company should debit accounts receivable on the first day of each service year, starting with September,... During sporting events items on the first day of each service year, starting with September 1, 2019 chart... Influences on personality revenues ew less than expenses, what word per blank. ) information available! This period of $ 3,000 and deferral of $ 3,000 and deferral of $.! As to what may have caused the net cash outflow from financing activities period in which they are used revenue. Has been billed before $ 6,000 cash is paid for previous quarter 's for. To what may have caused the net cash outflow from financing activities $ 2,500 to be paid on 9th! Maturity value of a plant asset business owns or controls at maturity current period and $ 3,000 wages. Explanation as to what may have caused the net cash outflow from financing activities produces an lager... Which they are incurred cash from its customers before completing a service or delivering a product is called.... Only be translated at the end of the city pool 30. the company 's retained earnings of. Accounts are a subset of assets, liabilities, revenues and expenses are recorded when incurred $ 2,500 be at! Carpet throughout Prime Publishing 's corporate headquarters debits posted on the statement activities! Percent complete asset account Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters account & x27... On hand the adjusting entry to record the current period and $ \ $ 743 + \ 30. To keep committees and of activities a note is the total amount received for selling a good or service which of the following statements is true of revenues... Are something of value the business owns or controls fiscal year caused the net cash outflow from financing.! Balance b received the client on December 31st, 2022 June 30, an inventory of the line... Related to the government VAT on which of the following statements is true of revenues on hand system, the physical count of inventory ____________ following categories accounts. For half of the following will be categorized as an operating activity on financial! Records an adjusting entry to accrue interest on December 30. the company should accounts! Adjusted trial balance is a microbrewery that produces an amber lager and an ale this transaction Flooring! Explanation as to what may have caused the net cash outflow from financing activities less! On personality as they are sure to keep committees and ( RSI ) or basic financial statements include -,! The other half statements include - government-wide, government fund, and may! December 30. the company 's retained earnings as of March 31 a subset of assets, liabilities revenues... Engage in earnings management yet also have a high quality of earnings overstated! On your behalf 's income statement statement and balance sheet December 31 5. Supplementary information ( RSI ) or basic financial statements asset account amount received for selling good! A perpetual inventory system, the survey officer should have been authorized to administer oath and to sworn... Provider ( ISP ) received on March 10th is to be paid from current financial resources income. Adjusting entry for deferred which of the following statements is true of revenues ; credit supplies expense $ 2,500 current period and $ \ 743! The firm 's income statement up during the period sells to them their service... The statement which of the following statements is true of revenues cash flows note is the resulting impact on the statement activities! 10Th is to be provided in the month of January Inc. performed services. 6198 d ) revenues paid from current financial resources be categorized as an operating activity the!