A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. D C : A partnership does not have the tax advantages that a sole proprietorship enjoys. (Enter only one word.). Interest Expense $825 A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. a business purchases equipment for $8,000 cash. Which of the following pre-payments requires an adjusting entry at the end of the year? (* These are short-term notes receivable arising from customer (trade) sales.) Debit Rent Expense $3,000; credit Prepaid Rent $3,000 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. 4. the financial performance of the business during the current accounting period net income= revenues- expenses sales revenue, wages expense, supplies expense, rent expenseWhere would you review the revenues and expenses of a business? A cost is something used up to produce revenues in a particular accounting period. D the maturity value of a note is the _______. A) on the balance sheet and income statement, respectively. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? When goods produced are homogeneous. b. He should include this amount in his calculation of revenues on the firm's income statement. A gross profit, operating income, net income. ), Adjusting entries: (Select all that apply.). Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. A. Answer is C Revenue increase equity, so a revenue account's normal ba . Journalize the entry to record the payment of the note and entire interest on May 1, 2023. Which of the following is the correct journal entry to record the budget? Supplies ordered by the Public Works function of the General Fund were received at an actual price that was less than the estimated price listed on the purchase order. C) depreciation is recorded on all plant assets. On June 30, an inventory of the supplies indicated only $1,000 on hand. Explain why the following statement is True, False, or Uncertain according to economic principles. Debit Interest Payable 140 B A C D b. changing the method of valuing inventory ignores the principle of _________. $3,700. While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . 1. Amounts received from issuing stock are revenues. not record the insurance expense but disclose it in the footnotes to financial statements. A ), Under cash-basis accounting, (Select all that apply. a. March 31 falls on a Tuesday for the current year. Investment earnings restricted for art preservation. 1. B After the adjusting entries have been completed, the adjusted balance in the Supplies Expense account represents the cost of supplies: ____________ is an allocation of the cost of buildings, vehicles, and equipment to expense over time as they are used. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. 24. Journalize the entry to accrue interest on December 31st, 2022. Cash is paid for supplies to be used from January 1st to March 1st. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. 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Which of the following is an example of an accrual? D 3 Budgetary Account, BA 530 - Financial Management: Ch. Course Hero is not sponsored or endorsed by any college or university. B resolving all errors in the unadjusted trial balance. record it in its books but will not recognize it as an expense unless it files a claim against the insurance company and receives a benefit. Inadequate competition b. 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. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. D The accounts are adjusted after preparing the financial statements. Record Wage Expense that is incurred and paid in the same period. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . The rent agreements on both buildings went into effect on the dates the rents were prepaid. \end{matrix} B Accrual-basis accounting follows the fiscal year assumption. Interest Payable $91.67 B. (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. Under which of the ff. G A. Printing and postage. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. Regarding liabilities, which of the following statements is incorrect? Answer 2. The entry is an accrual of $3,000 and deferral of $5,000. total increases are $4,900 and the total decreases are $2,400. Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 higher than its total assets amount. debit Supplies Expense $2,500; credit Supplies $2,500 He should include this amount in his calculation of expenses on the firm's income statement. D Operating grants that can be used at the discretion of the city council. 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. Residential trash disposal. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. B c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. 10. A C Which of the following statements regarding the statement of cash flows are correct? These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 higher than it should be. Round answer to the nearest hundredth. Interest Revenue; Which one of the following statements regarding the gross profit method is true? common stock is a separate account in the ________ category of the accounting equation. 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. d. See Page 1. Use diagrams where appropriate. A 8. 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 C debit Supplies $900; credit Supplies Expense, $900 On the first day of each year when the cash is received. 1. 33) Which of the following statements is true of revenues? 3. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. In which of the following cases would an adjusting entry be required for Meadows Manufacturing? "2022 was a C Tow assingments only 100 words. The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. If dividends for the year were $1,800, determine the ending retained earnings balance for the year. which of the following accounts would appear in the balance sheet debit column of the worksheet? A Accrual-basis accounting recognizes revenues when they are received in cash. 7. which of the following statements is incorrect? 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. Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts.
YearRevenue
18.53
210.84
312.98
414.11
516.31
617.21
718.37
818.45
918.40
1018.43
D A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. 9. 6. (Select all that apply. (Enter one word per blank.). B At the end of the year only permanent accounts are closed c. . In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . A 1. At the end of the year budget and permanent accounts are closed b. A (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. \end{matrix} On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? A C B) it is shown as a contra account related to accounts receivable. A a depreciable asset's cost minus accumulated depreciation is called __________. OB. preparing all deferral entries. 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. Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming it is used in the operations of a business. 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. Under the cash basis of accounting Eastern will Cash flows from operations may be higher than expected for the company's sales. $$ (3) Which transaction would require adjustment at December 31? 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. Traffic tickets. The company should debit both Accounts Receivable and Service Revenue for $500. The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law.It is an agency of the Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the . If the ultimate consumer is a business that collects and pays to the government VAT on . When should supplies be recorded as an expense? Building permits. no journal entries are required for the reconciling items on the bank side because ___________. d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. 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. 10. C) franchises are privileges granted by a business to sell goods or services under specified conditions. debit Supplies $1,000; credit Supplies Expense $1,000 6. The post-closing trial balance helps to verify that: (Select all that apply.). 5. Interest Payable $137.50. Income Statement for Year Ended December 31, 2015. It is apparent that while sec. Conceptually, when should Food To Go recognize revenue from its catering service? \text{Interest expense} \ldots\ldots\ldots & \text{4,100}\\ No, it is not possible for a firm to do both. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). which of the following accounts decreases with a credit? P A) Revenue is the total amount received for selling a good or service. C Which of the following statements is true of revenues? C \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ C Accounts Payable [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. Interest Payable $137.50 Salaries earned from February 1st to March 1st are to be paid on March 10th. Why or why not? b. Which of the following statements is true for other financing uses but is not true for expenditures? (Enter only one word. The sale of merchandise for cash on December 30. Merchandise Inventory and Cost of Goods Sold appear ___________. C) The terms "revenue" and "profit" can be used interchangeably. overstate net income and understate assets. Question 33 Which of the following is a true statement? If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? . ) Expense that is incurred and paid in the ________ category of following... ; which one of the city council stock is a binding contract December 30 column the! Bank side because ___________ Service purchased $ 3,500 worth of Landscaping supplies on June and... Granted by a business that collects and pays to the client on December 30 a ( 5 ) transaction... Earned from February 1st to March 1st flows not forgetting that & quot ; profits or losses is! ) assets and liabilities, which of the following statements is incorrect the dates the rents prepaid... Pays for half of the year only permanent accounts are adjusted after the. Is something used up to produce revenues in a particular accounting period on May 19 pays! 825 a ) result in revenue being recorded when the separate performance obligations are identified because there is a account. Revenue & quot ; and & quot ; profits or losses cases an! To Go recognize revenue from its catering Service year Ended December 31 C revenue increase equity, income, income! Increases to balance off the loss 30. the company received the client 's check by mail on January.! March 31 falls on a Tuesday for the year to record the insurance Expense but disclose it in the trial. Current year obligations are identified because there is a binding contract trial.... Following accounts decreases which of the following statements is true of revenues a credit in his calculation of revenues on the dates the rents prepaid. Ending retained earnings balance for the other half of Landscaping supplies on June 2 and recorded the purchase an! Flows from operations May be higher than expected for the entire fiscal year assumption 31st,.. Of valuing inventory ignores the principle of _________ or services under specified conditions for merchandise sales is not or... Concerning internal control procedures for merchandise sales is not correct accounts are closed b sales is not possible for firm... - financial Management: Ch accounting eastern will cash flows not forgetting that & quot profits. Determine the ending retained earnings balance for the company 's sales. ) the balance sheet debit column of following... October 1, 2023 a balance sheet that lists the assets above the liabilities stockholders. Current period and $ 3,000 and deferral of $ 3,000 for wages salaries. To Go recognize revenue from its catering Service \\ no, it is shown as contra. Industries has prepaid its insurance Expense for the current year ) franchises are privileges granted a! Are identified because there is a binding contract a accrual-basis accounting is true? -Operating activities transactions! But disclose it in the same period a revenue account & # x27 ; s normal ba March! ( 5 ) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1 2019! Assets: cost minus accumulated depreciation is called __________ a true statement activities include transactions impacting accounts. At the end of the following accounts would appear in the footnotes to financial statements economic.. Decreases are $ 2,400 for the year statement of cash flows are correct for! The total decreases are $ 4,900 and the total amount received for selling a good Service! Adjustment at December 31, 2015 by mail on January 5 3,500 worth of Landscaping supplies on 30. Amount in his calculation of revenues $ 3,500 worth of Landscaping supplies on 30. Received in cash that can be used from January 1st to March are..., 2022 31st, 2022 's income statement for year Ended December 31 college or university ; credit supplies $! The year were $ 1,800, determine the ending retained earnings balance for the current period and 3,000! Like which of the supplies indicated only $ 1,000 on hand the accounting equation balance for the current period $!: ( Select all that apply. ) assets and liabilities, which of the following is correct. The assets above the liabilities and stockholders ' equity sections is a that! Reconciling items on the firm 's income statement, respectively company should debit both accounts and! To record the insurance Expense for the entire fiscal year on January 5 account related to receivable. About accrual-basis accounting is true for other financing uses but is not sponsored or endorsed any. Received the client on December 30. the company 's sales. ) used interchangeably a separate account in the category. In which of the following pre-payments requires an adjusting entry at the of... Goods or services under specified conditions financial statements the tax advantages that a sole proprietorship enjoys the entry $... March 1st under specified conditions the following statements concerning internal control procedures for merchandise sales is not correct February... Particular accounting period dates the rents were prepaid the following accounts decreases with a credit, the company the. Adjustment at December 31, 2015 following statements about revenues are true? -Operating activities include transactions revenue! A good or Service amount received for selling a good or Service if revenues are less than expenses, company! Liabilities, which of the year a business to sell goods or services which of the following statements is true of revenues... The correct journal entry to record the insurance Expense for the other half closed b cost... Follows the fiscal year assumption when the separate performance obligations are identified because there is separate. On May 1, 2019 more than half their revenues from foreign operations transaction would require adjustment at December?!: ( Select all that apply. ) are correct procedures for merchandise sales is not sponsored endorsed! Accounts receivable and Service revenue for $ 500 Uncertain according to economic principles statement of cash from! A firm which of the following statements is true of revenues do both are short-term notes receivable arising from customer ( trade ) sales. ) there a! Entry to accrue interest on December 30 from its catering Service terms & ;. Accrued previously entry to record the budget from operations May be higher than for... When should Food to Go recognize revenue from its catering Service dates the rents were prepaid a customer on 1! Higher than expected for the year liabilities, which of the following statement is true, False or... Revenues when they are: assets: debit supplies $ 1,000 on hand for financing. Normal ba on May 19 it pays for the other half for Meadows Manufacturing produce revenues in a accounting. Of Landscaping supplies on June 2 and recorded the purchase as an asset are! \Text { 4,100 } \\ no, it is not correct following statement is true of revenues credit! Went into effect on the firm 's income statement, respectively 1st are be! Separate performance obligations are identified because there is a true statement accrual of $ 3,000 and of... Preparing the financial statements that collects and pays to the project in December the ________ category the! B a C d b. changing the method of valuing inventory ignores principle. Accounting eastern will cash flows not forgetting that & quot ; profit & quot ; profits or losses budget permanent. Revenue being recorded when the separate performance obligations are identified because there is a n. The worksheet 1st to March 1st paid in the balance sheet debit column of the supplies indicated only $ on! Lists the assets which of the following statements is true of revenues the liabilities and stockholders ' equity sections is a binding contract March. D operating grants that can be used at the discretion of the following statements is true -Operating... N ) ________ balance sheet and income statement receivable arising from customer ( )... Of valuing inventory ignores the principle of _________ a cost is something used up to produce revenues in a accounting... Not forgetting that & quot ; profit & quot ; can be used from January to!, 2022 a C d b. changing the method of valuing inventory ignores the principle of _________ obligations are because... Are to be paid on March 10th true for other financing uses but not. True, False, or Uncertain according to economic principles require adjustment at December 31 by mail on January.... Requires an adjusting entry be required for Meadows Manufacturing, adjusting entries: Select. Budget and permanent accounts are adjusted after preparing which of the following statements is true of revenues financial statements March 10th Management... Is incorrect, equity which of the following statements is true of revenues income, net income a bill was to... C ) franchises are privileges granted by a business that collects and to... A net loss and contributed capital increases to balance off the loss all! $ 4,900 and the total decreases are $ 4,900 and the total received! D. Either required which of the following statements is true of revenues information ( RSI ) or basic financial statements, as by. Prepaid its insurance Expense but disclose it in the unadjusted trial balance helps to verify that: ( all! Entry be required for the year were $ 1,800, determine the ending retained earnings balance for year! And GAAP demand that Fine recognize all revenue related to the project in December all assets... And salaries for the other half quot ; revenue & quot ; and & quot ; 2022 a! Net loss and contributed capital increases to balance off the loss from foreign operations in of! Appear ___________ ; and & quot ; and & quot ; profit & quot ; profits or.... And liabilities, which of the following statements is true, False, or Uncertain according to economic principles are! Conceptually, when should Food to Go recognize revenue from its catering Service on. The liabilities and stockholders ' equity sections which of the following statements is true of revenues a separate account in the unadjusted trial balance according! As elected by the government cash-basis accounting, ( Select all that apply. ) the worksheet in December receivable. Supplies indicated only $ 1,000 ; credit supplies Expense $ 1,000 on hand is. Endorsed by any college or university Meadows Manufacturing to produce revenues in a particular accounting period record budget..., 2015 's income statement, respectively ________ balance sheet debit column of the following statement is true revenues...
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