B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. When should Mainzel recognize the related revenue using accrual accounting? (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.) \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ Interest Expense $137.50 Increase. 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? P B To estimate the amount of bad debt expense based on an aging of accounts receivable. Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. 8. Credit Cash $12,420 got it correct. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. A three-month insurance policy is purchased on December 6th. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? [8]
YearRevenue
18.53
210.84
312.98
414.11
516.31
617.21
718.37
818.45
918.40
1018.43
Revenues decrease equity, so a revenue account's normal balance is a credit balance. D How do adjusting entries for accrued expenses affect liabilities and expenses? understated; $5,325. Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? Interest Payable $825 (Enter one word per blank.). A prepayment such as "Prepaid Insurance" is originally recorded as a(n) ____________ when an insurance policy is purchased and will later be expensed in the period used. River Brewery is a microbrewery that produces an amber lager and an ale. d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. overstated; $16,125. Fund, function or program, organization unit, activity, character, and object. 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? 3. If revenues are greater than expenses, the company has net income and contributed capital increases. revenues and expenses can only be translated at the exchange rate in effect when recognized. The balance sheet reports financial activities only for . d. The process of allocating the cost of an asset to expense over the useful life of the asset is called. The Prepaid rent balance at December 31, 2019 equals ______. assets, liabilities, equity are _____________ accounts. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. Debit Notes Payable $12,840 Pakistan is the 33rd-largest country in the world . (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. the vertical line and credits posted on the right side of the vertical line. Sales and Accounts Receivable. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. Not recorded because it is a projection and not yet known. CS A. Debt service. 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. When there is no ending inventory. d. When beginning and ending inventories are each 50 percent complete. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ Police Department. 4. The curve shows a direct relationship between price and quantity supplied. 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. (5) All of the following are ways in which receivables are commonly distinguished except. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ Which two accounts would be most at risk? From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. An accrual results when ____________ and a deferral results when (Enter only one word.). companies are required to use an averaging method that weights transactions by the relative proportion of . A Printing and postage. _____________ is defined as the "cost of borrowing money." Unearned revenues are reported on the Income Statement. E.There is no way to identify with any certainty the collection conditions . Dictates that companies record assets at their cost. Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. eastern United States. $$ Cash and Sales. A 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. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ B The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. the maturity value of a note is the _______. What is the total amount of cash McLean received? an internal document that helps summarize data for the preparation of financial statements is called a __________. The curve shows that the Law of Supply does not hold in this case. Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. spread the insurance expense evenly over twelve months. Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. 4. Which of the following statements is true regarding this supply curve? What is free cash flow, and how is it computed. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. The accounts are adjusted after preparing the financial statements. A P Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Course Hero is not sponsored or endorsed by any college or university. \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}\\ The curve shows an inverse relationship between . As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by B A A A. If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. 5. 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. annually. 9. 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. c. Expenses minus program revenues equals net (expense) revenue. 6. Conceptually, when should Food To Go recognize revenue from its catering service? D a. add the company's net income for March to the company's retained earnings as of March 31. ), Adjusting entries: (Select all that apply.). A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. [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. Using the accrual basis of accounting, when should Montana recognize revenue? A. A. 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. (3) Which of the following statements is false? A On the first day of each year when the cash is received. Give examples in your answer. 8. D) the various inventory costing methods are not used in a periodic inventory system. A Use diagrams where appropriate. Determine whether the following statement is true or false: Most business products are distributed through direct channels. b. Option a is true. A Which of the following statements about accrual-basis accounting is true? $18,200 He should include this amount in his calculation of revenues on the firm's income statement. Transcribed image text: 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) Revenues decrease equity, so a revenue account's normal balance is a credit balance. 133A does not permit the same. 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. 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. C Unearned revenues are not related to cash collections. B) amounts paid to make the asset ready for its intended use, A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period. a. (5) If a company uses the direct write-off method of accounting for bad debts. changing the method of valuing inventory ignores the principle of _________. 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? The magazines will begin to be delivered in October 2019. The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. a. Comment on the appropriateness of a linear trend. Expert Answer. What is a single subject research methodology in behavioral sciences? \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? 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. 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. Norbert Inc. delivered goods and services during December. c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? preparing all adjusting entries. On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. Round answer to the nearest hundredth. 8. D They would record it as a credit to revenue and debit to cash on May 15. A worksheet facilitates the preparation of the statement. A 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. See Page 1. D The annual revenue, On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. overstate assets and net income. (5) Food To Go is a local catering service. 7. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . D Payment was received on January 21 of the following year. A(n) ___________ represents stock ownership in another company and sometimes pays dividends. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ assets are understated. Revenues increase equity, so a revenue account's normal . Cash flows from operations may be higher than expected for the company's sales. c. Using the trend equation developed in part (b), forecast revenue in year 11. C Her next step in preparing the company's financial statements should be to \$201 + \$743 + \$6198 restrictions on retained earnings are _________. A What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? Accident investigation. This means that the ending balance of the, 37) In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total. 3. D) A firm's revenue will increase as its costs increase. A) assets are something of value the business owns or controls. Which of the following is an example of a deferral? A. 6. Cash is paid for supplies to be used from January 1st to March 1st. b. $8,000 of revenue and $600 of expense. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. **Required** a. Gift for the purchase of new playground equipment. a. an adjusting entry is completed ________. A 8. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. d. Encumbrances. F a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. A business purchases $1000 of office supplies on account. Which of the following is the correct journal entry to record the budget? ), Under cash-basis accounting, (Select all that apply. recognize the entire year's insurance expense in the month of January. 10. In this scenario, Environmental protection. A How do temporary accounts differ from permanent accounts? C) The terms "revenue" and "profit" can be used interchangeably. 3. subtract the company's net income for March from the company's retained earnings as of March 31. B Under which of the ff. 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. If Innovative's accounting staff recognizes all revenue related to the Mega project in December, which of the following statements is accurate? Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. stockholder's equity is understated. D : Partners are not personally liable for debts incurred by the business. (Enter one word per blank.). When an obligation is incurred that will be paid from current financial resources. 2. Building permits to construct a deck at a residence. Interest Expense $825 (5) When should the net method be used to record sales revenue? "2022 was a At the end of the year budget and permanent accounts are closed b. b. 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. B True or false: Adjusting entries ensure that assets in the balance sheet are reported at amounts that have been used up or expired during the period. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . Salaries and wages. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. 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. D) usually reported in the notes to the financial statements. Accounts Payable which of the following statements is true of a corporation? Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. \ Technology companies are particularly dependent on offshore revenue. $0. Accounts Receivable. 7. c. Variable costs are direct costs; only . 9. The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. It does not include enterprise, permannet funds, etc so option . a depreciable asset's cost minus accumulated depreciation is called __________. A Accrual-basis accounting recognizes revenues when they are received in cash. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. 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. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. If a company spends $12 million dollars for a warehouse, when should the cost be written off? \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ A D) Revenues . Interest Expense $91.67 C) quickly an asset may be converted into cash. in millions of dollars, for the previous 10 years is shown. A. The following income statement and balance sheet information are available for two firms, Firm A and Firm B. B B. Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. Paul's received 100% of the total payment for the project on May 3. Which of the following best identifies when an encumbrance is recorded? 7. b. Amounts paid out as dividends are reported on the income statement. (Select all that apply. Salaries and Wages Expense and Salaries and Wages Payable 5. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? Selected year-end financial statements of Cabot Corporation follow. 10. Estimated Other Financing Sources. which of the following statements is incorrect? B) it is shown as a contra account related to accounts receivable. Which of the following statements is true? Taggert Company paid $1,800 for a 6-month insurance premium on December 1. The post-closing trial balance helps to verify that: (Select all that apply.). 7. 1. a. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. 1. A) on the balance sheet and income statement, respectively. Closing entries move the balances from the ______ accounts into the Retained Earnings account. total increases are $4,900 and the total decreases are $2,400. G D 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 Explain why. monthly. Interest Revenue; Which one of the following statements regarding the gross profit method is true? accrual-basis; May. A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. A If an adjusting entry's credit is to a liability account, then the debit must be to ______. The gross profit method is a complicated method to use in practice. C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. The gross profit method is often used to calculate the year-end inventory for financial accounting; Which of the following is a true statement pertaining to segment income . b. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. D A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. C C Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. D Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. Notes Payable $137.50 cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. 10. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ Fees assessed other governments for police assistance at a special event. The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? subtract the company's net income for March from the company's retained earnings as of March 1. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. How do the following circumstances sometimes lead to market failure? which of the following statements is true of revenues? d. Insufficient information to determine the effect. under which of the following categories would Accounts receivable appear? debit Supplies $900; credit Supplies Expense, $900 G In order to be successful, however, the firm must provide full and transparent information related to any unusual or unexpected changes in revenues, expenses, gains, and/or losses.

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