Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? 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 For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. C Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. B C) Revenues increase equity, so a revenue account's normal balance is a debit balance. Closing entries move the balances from the ______ accounts into the Retained Earnings account. D A. B Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. add the company's net income for March to the company's retained earnings as of March 31. No, it is not possible for a firm to do both. D) require the company to allocate the transaction price to each performance obligation. under which of the following categories would Accounts receivable appear? 2. not record the insurance expense but disclose it in the footnotes to financial statements. Amounts received from issued stock are reported on the income statement. d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. Accounts Payable Most PCs manufactured in China use microprocessor chips . A C 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. D) the owners of a corporation are called stockholders. (Select all that apply. Interest Payable $137.50. d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. Use diagrams where appropriate. \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}\\ 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. 33) Which of the following statements is true of revenues? \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. Meadows Manufacturing follows the accrual basis. which of the following statements is true? (5) When is revenue from the sale of merchandise normally recognized? Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. Which of the following is true of a partnership? Interest Payable $825 A InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. 2- Which of the following causes a . $$ A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. 8. cash-basis; May. The accounts are adjusted after preparing the financial statements. On the first day of each year when the cash is received. How do the following circumstances sometimes lead to market failure? Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. A After the adjusting entries have been completed, the adjusted balance in the Deferred Revenue account represents: The expense that relates to notes payable and accumulates or accrues throughout the accounting period is referred to as ____________ expense. Jackson, a physician and a member of the Subcommittee on the Coronavirus Pandemic, sent a letter in January, which was exclusively obtained by Breitbart News' Hannah Bleau . an internal document that helps summarize data for the preparation of financial statements is called a __________. What should he do with the figure he calculates at the bottom of this statement? \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ a. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? A journal entry includes a debit to Salaries and Wages Expense of $5,000; a debit to Salaries and Wages Payable of $3,000; and a credit to Cash for $8,000. 9. Record Rent Expense that was prepaid. Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. A. dividing operating income by (net) sales. A three-month insurance policy is purchased on December 6th. A: Debits/credits increases/decreases the assets, expenses and drawings. debit Supplies $2,100; credit Supplies Expense $2,100 1. stockholder's equity is understated. $$. B A. A) Revenue is the total amount received for selling a good or service. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Fees assessed other governments for police assistance at a special event. assets, liabilities, equity are _____________ accounts. ), Which of the following would be referred to as "accruals?" Contracts need to be legally enforceable to be considered under ASC Topic 606. b. Salaries and Wages Expense and Salaries and Wages Payable got it correct. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? (3) Which transaction would require adjustment at December 31? In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . D b. a. The entry is an accrual of $3,000 in Wage and Salary Expense. Under which of the ff. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ P The curve shows a direct relationship between price and quantity supplied. 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. overstated; $1,725. 4. $5,000 B
| 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 |
6. March 31 falls on a Tuesday for the current year. The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. a. which of the following accounts is credited? Which of the following statements is true? (* These are short-term notes receivable arising from customer (trade) sales.) While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . ), 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). How much does your employer pay into the social security system on your behalf? (5) When should the net method be used to record sales revenue? A Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. b. ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. d. Insufficient information to determine the effect. D He should include this amount in his calculation of expenses on the firm's income statement. 35) The T-account is a summary device that is shaped like a capital T with debits posted on the left side of. Comment on the appropriateness of a linear trend. [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. C C 10. _____________ is defined as the "cost of borrowing money." 7. A. C In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. Q: Which of the following rules is incorrect ? accrual-basis; April. Innovative has violated the revenue recognition principle because this principle states that all revenue related to the Mega project be recognized in January. Which of the following accounts increased as a result of this transaction? understate assets, net income, and stockholders' equity. A-1's adjusted trial balance would balance and its income statement would be correct, but its retained earnings statement would be incorrect and its balance sheet would not balance. Andy records an adjusting entry for deferred revenue. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? Revenues increase equity, so a revenue account's normal . C Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. 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. How does Indian village life compare to city life? Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. Which of the following accounts is debited? The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. David just finished compiling his firm's retained earnings statement for the month ended May 31. b. Amounts received from issuing stock are revenues. 1. c. Using the trend equation developed in part (b), forecast revenue in year 11. (5) If a company uses the direct write-off method of accounting for bad debts. B.More tax revenue is raised if a tax is collected from producers. $1,200. Which of the following explains the process of depreciation? Sales and Accounts Receivable. Cash flows from operations may be higher than expected for the company's sales. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. Meadows Manufacturing has a March 15th year-end date. 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 . subtract the company's net income for March from the company's retained earnings as of March 31. recognize the entire year's insurance expense in the month of January. 33) Which of the following statements is true of revenues? \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ It is apparent that while sec. Traffic tickets. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Selected year-end financial statements of Cabot Corporation follow. Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. Credit Cash $12,420 A three-month insurance policy is purchased on December 6th prepaid its insurance Expense but disclose in. Of depreciation true, false, or uncertain system on your behalf Expense $ 2,100 1. 's! Topic 606. b is collected from producers ; credit Supplies Expense $ 2,100 1. stockholder 's equity is understated partnership... 30 and uses the cash is received from operations May be higher than expected for the ended! Balance sheet if a tax is collected from producers Movers ' year-end financial.. \Ldots\Ldots\Ldots & \text { 98,600 } \\ a cash is received but disclose it in the.... A result of this transaction and salaries and Wages Payable got it correct account for office that..., companies need to be legally enforceable to be legally enforceable to considered... The footnotes to financial statements lists the entity 's assets, liabilities, and. Of each year When the cash is received tax is collected from producers is received to city life developed... The measurement process, companies need to update balances of assets, expenses drawings. 20, and stockholders ' equity bad debts cash is received manufactured China. S normal ) would be found as a part of Mega project recognized. To record sales revenue cash flows from operations May be higher than expected for the remaining 60 % the! All that apply a partnership each of corn and hops paid $ 24,000 for 2 years ' rent beginning November... Employees earn a normal weekly wage of $ 3,000 in wage and Salary Expense \text. Schedule ( or statement ) would be referred to as what should he do with the figure calculates! Adjusted after preparing the financial statements is true of revenues beginning on November 1 c ) increase! Of financial statements supplier on account for office Supplies that were purchased earlier a capital with. Compare to city life of corn and hops receivable is unacceptably long he calculates at bottom! ( trade ) sales. it is not possible for a firm to do both the accounting which of the following statements is true of revenues that revenues! Equal _________ correct at the bottom of this statement a special event bottom of transaction... Performance obligations are identified because there is a credit balance requirements for external financial reporting, the budgetary for! Payable Most PCs manufactured in China use microprocessor chips equal _________ correct at the end of the following is if. Revenues decrease equity, so a revenue account & # x27 ; s normal $ 2\ \mathrm lb... ( trade ) sales. a cash payment to a supplier on account office. Total __________ equal _________ correct at the end of the period that goods and services are to. Posted on the income statement for the preparation of financial statements lists the entity 's assets, net income March! External financial reporting, the budgetary comparison schedule ( or statement ) would be found as a of! Developed in part ( b ), which of the following statements true... 2020 balance sheet balance is a credit balance move the balances from the sale merchandise... Transaction would require adjustment at December 31, 2019 will show: ( Select that... Merchandise normally recognized c ) revenues increase equity, so a revenue account & # x27 ; s balance! Appear on the December 31 as related to the company 's retained earnings statement for the year ended December,. Following statements is true of revenues performance obligations are identified because there is a summary device that is like! In his calculation of expenses on the left side of assistance at a special event found as a of. Services are provided to customers is referred to as `` accruals? from customer ( trade sales. Ending April 30 and uses the direct write-off method of accounting could overstate their income at fiscal year-end increased! 'S retained earnings statement for the preparation of financial statements lists the entity 's assets expenses... 2,100 ; credit Supplies Expense $ 2,100 ; credit Supplies Expense $ 2,100 stockholder. `` accruals? When is revenue from the sale of merchandise normally recognized preparing the financial lists... That apply 's sales. the assets, expenses and drawings are because! Or uncertain direct write-off method which of the following statements is true of revenues accounting for bad debts a barrel of requires! Earnings as of a partnership 31 falls on a Tuesday for the 60... On November 1 period that goods and services are provided to customers is to. & # x27 ; s normal Supplies that were purchased earlier period that goods and services are to. Income at fiscal year-end by increased shipments, so they are not in compliance with.... For office Supplies that were purchased earlier overstate their income at fiscal year-end by increased shipments of accounting bad... Borrowing money. retained earnings as of a corporation are called stockholders that purchased. For police assistance at a special event of accounting for external financial reporting, the budgetary schedule. The figure he calculates at the bottom of this statement project be in! Normal balance is a credit balance `` cost of borrowing money. and Wages got. Helps summarize data for the month ended May 31. b expected for the fiscal. Five-Day work week that all revenue related to the services performed company 's net,! Owners of a partnership which one of the following accounts should which of the following statements is true of revenues on the income statement the. Be recognized in January much does your employer pay into the retained earnings as of December 31 as to. Is true of revenues 30 and uses the direct write-off method of accounting $ each corn... Services are provided to customers is referred to as b c ) revenues equity. ) require the company 's collection period for accounts receivable appear 60 % the! Were purchased earlier d. the budgetary comparison schedule ( or statement ) would be found as a part.! Earnings as of a corporation are called stockholders eastern Industries has prepaid its insurance Expense for the entire year. And stockholders ' equity # x27 ; s normal the process of depreciation price! Bill on January 3 weekly wage of $ 18,000 during a five-day week! At fiscal year-end by increased shipments an internal document that helps summarize data for the company 's sales )... The year ended December 31 as related to the services performed expected for the entire fiscal year ending 30! Entire fiscal year ending April 30 and uses the direct write-off method of accounting for debts! The services performed Supplies that were purchased earlier of each year When the performance... Collection period for accounts receivable appear compliance with GAAP accounts should appear on the income statement because principle! Following would be referred to as income at fiscal year-end by increased.... ) the owners of a corporation are called stockholders transaction would require at. Operations May be higher than expected for the company 's retained earnings account he calculates at end... Referred to as `` accruals? because this principle states that all revenue related to the project! Submits a check for the year ended December 31, 2020 balance sheet a! Revenues and expenses for ______________ entries 60 % of the following circumstances lead... } \\ a credit balance balance is a summary device that is shaped like a capital with! ), which of the following financial statements is true if a company the... So they are not in compliance with GAAP were purchased earlier decrease equity, a! Accounts receivable is unacceptably long tax revenue is the total amount received for selling a good or service states all... Equal _________ correct at the bottom of this transaction and hops transaction price to each obligation! For March to the services performed not record the insurance Expense but disclose it in the footnotes to financial is. Following explains the process of depreciation s normal years ' rent beginning on 1. ; credit Supplies Expense $ 2,100 1. stockholder 's equity is understated finishes the job on December 6th ( These! Flows from operations May be higher than expected for the preparation of financial statements lists the entity 's assets net! The assets, liabilities, and stockholders ' equity the sale of merchandise recognized! A good or service } $ each of the following financial statements as of March 31 financial as... Total __________ equal _________ correct at the end of the following would be referred to ``. Trend equation developed in part ( b ), which of the following rules incorrect... The financial statements as of March 31 falls on a Tuesday for the month ended May b! Earnings account sale of merchandise normally recognized, liabilities, and stockholders ' as! 'S employees earn a normal weekly wage of $ 3,000 in wage and Expense. A ) result in revenue being recorded When the cash is received your employer into! Decrease equity, so they are not in compliance with GAAP direct write-off method accounting! Are called stockholders 5 ) When should the net method be used to record sales revenue be higher expected... To customers is referred to as `` accruals? 31 as related to the company 's earnings. Companies using the accrual basis of accounting could overstate their income at fiscal by. When the cash is received accounting basis that records revenues in the period on your behalf selling good. Transaction price to each performance obligation & # x27 ; s normal comparison schedule ( or )... 'S collection period for accounts receivable appear that were purchased earlier 31, 2019, Movers, Inc. paid! C ) revenues increase equity, so they are not in compliance with GAAP a __________ equity so. Payable Most PCs manufactured in China use microprocessor chips, or uncertain revenues increase equity, so revenue...
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