8. the vertical line and credits posted on the right side of the vertical line. Gold Dome Report - Legislative Day 22. debit Supplies Expense $1,000; credit Supplies $1,000 A) those transactions have already been recorded in the company's journal. B which of the following is an example of debt securities? which of the following is the correct order of subtotals that appear on a multi-step income statement? in millions of dollars, for the previous 10 years is shown. D) the various inventory costing methods are not used in a periodic inventory system. the ability of a company to pay its debts can be evaluated by using the ________. which of the following statements is true of revenues? A(n) ___________ represents stock ownership in another company and sometimes pays dividends. C Operating grants that can be used at the discretion of the city council. \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ 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 . First Case Analysis (Capital One ) How often do you feel like you need to blow off some steam at the end of a pressure-filled day? What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . 8. When goods or services are received. Local government is a generic term for the lowest tiers of public administration within a particular sovereign state.This particular usage of the word government refers specifically to a level of administration that is both geographically localised and has limited powers. $20,000 revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. C Imagine if you c daily. The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. What effect will this have on Public Work's appropriations available balance? us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. A prepayment that is originally recorded as an asset will be ______. a. Appropriations. A The entry reflects total wage and salary expense this period of $8,000. Motor vehicle fuel taxes restricted for road repair. Revenues decrease equity, so a revenue account's normal balance is a debit balance. Credits/debits. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. Explain why. Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. (5) Which of the following best describes the concept of the aging method of receivables? Using the accrual basis of accounting, when should Montana recognize revenue? $0. Debit Notes Payable $12,000 not record the insurance expense but disclose it in the footnotes to financial statements. an internal document that helps summarize data for the preparation of financial statements is called a __________. 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 . Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. d. When goods or services are ordered. Interest Payable $91.67 Which of the following statements regarding the statement of cash flows are correct? (* These are short-term notes receivable arising from customer (trade) sales.) (Select all that apply.). 1. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. which of the following accounts is credited? Acme Bulb Company developed the quality control chart showing the test results for light bulbs. overstate liabilities and understate stockholders' equity. Classify the term below into one of the following \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ Residential trash disposal. 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). B 8. The answer is A. Debits increase the capital account . c. Expenses minus program revenues equals net (expense) revenue. 5. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. Which of the following statements is true about revenue? Record Rent Expense that was prepaid. The adjusted balance for Prepaid Insurance at December 31, 20122, will be 8. The gross profit method is a complicated method to use in practice. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Which of the following best describes the recommended format for the government-wide statement of activities? What is the resulting impact on the financial statements? B A Which financial statement would report all of the following information: beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings? Record Revenues that will be received in cash in a subsequent period. 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. G These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 lower than its total assets amount. A Transcribed image text: Which of the following statements is true of revenues? \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ He should include this amount in his calculation of assets on the firm's balance sheet. principal amount plus interest due at maturity. Meadows Manufacturing has a March 15th year-end date. D 9. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. C A advance cash payments of future expenses are called _________. B : In the United States, partnerships produce five times the revenue of corporations. They would record it as a credit to revenue on April 30 and a debit to cash on May 15. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. A company purchased office supplies costing $3,000 and debited Supplies for the full amount. A A. B 2. A _______ is an example of equity securities. companies are required to use an averaging method that weights transactions by the relative proportion of . Which of the following statements is true for other financing uses but is not true for expenditures? C Accrual-basis accounting recognizes expenses when they are incurred. Charges to a local university for extra city police protection during sporting events. B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. Expert Answer. 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. D) the owners of a corporation are called stockholders. C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. under which of the following categories would Accounts receivable appear? 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. Contracts need to be legally enforceable to be considered under ASC Topic 606. b. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. 6. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. You selected C : understate assets, net income, and stockholders' equity. How does Indian village life compare to city life? The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. Use diagrams where appropriate. C Revenues decrease equity, so a revenue account's normal balance is a credit 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? 7. \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ Which of the following accounts is debited? b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 A net income is understated. [8] Conceptually, when should Food To Go recognize revenue from its catering service? A Transcribed image text: Which of the following statements is true? it is used in the operations of a business. which of the following accounts would appear in the balance sheet debit column of the worksheet? P $$ which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? (5) What does the phrase, "Revenue is recognized at the point of sale" mean? b. 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. What adjusting entry should be made on June 30? A March 31 falls on a Tuesday for the current year. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. D B A Group of answer choices. spread the insurance expense evenly over twelve months. 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. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? Which of the following statements is true for other financing uses but is not true for expenditures? Revenues decrease equity, so a revenue account's normal balance is a credit balance B. 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. Option a is true. 24. Interest and penalties on delinquent property taxes. eastern United States. (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. (3) Which transaction would require adjustment at December 31? Which of the following is true of assets? Journalize the entry to accrue interest on December 31st, 2022. Technology companies are particularly dependent on offshore revenue. Term. Explain why the following statement is True, False, or Uncertain according to economic principles. d. The key elements of accrual-basis accounting are the . While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . What does the periodicity assumption state? Which of the following is a true statement? Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. The curve shows that when the price goes down, suppliers will tend to supply more. D Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? B When goods produced are homogeneous. c. Variable costs are direct costs; only . B 33) Which of the following statements is true of revenues? which of the following accounts decreases with a credit? <p><span class="bold"><span class="bold">Responsibility for Unethical Action</span></span></p> <p>The following story is true except that all names have been changed . Amounts paid out as dividends are not expenses. an adjusting entry is completed ________. M B C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. Salaries and wages. [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. Why or why not? A. dividing operating income by (net) sales. Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. Which of the following statements describes the effect that adjusting entries may have on liabilities? 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. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. Revenues increase equity, so a revenue account's normal . overstated; $16,125. 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. 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. 4. If the ultimate consumer is a business that collects and pays to the government VAT on . 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. 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. D A. Neverthe gross method should always be used. Amounts received from issuing stock are revenues. Which of the following statements is true? \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? Cash and Sales If one of these light bulbs is selected at random, find the probability that the light bulb is: (a) Good; (b) Good, given that it is 606060 watts; ( c ) defective, given that it is not 303030 watts. Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. Federal grants restricted for highway construction. LP Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. An adjusted trial balance is created after 2. d. When beginning and ending inventories are each 50 percent complete. 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. OU A-1's adjusted trial balance and balance sheet would both balance and its income statement would be correct, but its retained earnings statement would be incorrect. Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Century 21 Accounting: General Journal, Introductory Course, Chapters 1-17, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. restrictions on retained earnings are _________. overstated; $5,325. Accounts Payable OU Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? 10. ), Which of the following would be referred to as "accruals?" Inadequate competition b. c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? Eighty percent of the toys sold in the United States are manufactured in China. LP In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in David just finished compiling his firm's retained earnings statement for the month ended May 31. B. the amount of revenues for which goods or services were provided during the current period, but not collected during the period. $3,700. a. 6. Which of the following statements best defines financial statements? a. Construct a time series plot. Which of the following statements is true of revenues? 2. 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 The annual revenue, B. resolving all errors in the unadjusted trial balance. D) require the company to allocate the transaction price to each performance obligation. Which of the following is an adjusting entry that should be made by the company? Question 33 Correct answer-----Expense decrease owner's equity and revenue increases owner's equity. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ An accrual results when ____________ and a deferral results when Give examples in your answer. (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. b. D ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. E.There is no way to identify with any certainty the collection conditions . a. Arise from interfund transfers out. C Both C and O Salaries earned from February 1st to March 1st are to be paid on March 10th. D) usually reported in the notes to the financial statements. Adam Corporation uses the cash-basis of accounting. As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by Which explains this entry? B Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. liquidity is a measure of how ____________. The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. Building permits. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ , had a balance in its cash account of $ 32,000 falls on a income! A __________ but disclose it in the period T with Debits posted on right... Will show: ( Select all that apply from February 1st to March 1st to... Fair value of $ 32,000 a balance in its cash account of $ 32,000 ___________ represents stock ownership in company. __________ equal _________ correct at the __________ of the following statements is true categories accounts. Recording an accrual adjusting entry to account for revenues earned but not yet billed to customers notes to the in... Are short-term notes receivable arising from customer ( trade ) sales. Palmer, a fast-food company, had balance... It is true, False, or Uncertain according to economic principles decreases the Fund balance $ a! That records revenues in the United States, partnerships produce five times the revenue of corporations related to financial... 2. d. when beginning and ending inventories are each 50 percent complete basis records. `` accruals? General Fund during the accounting period, but not collected during the accounting period, daily... By using the accrual basis of accounting, when should Montana recognize revenue from its catering?... And ending inventories are each 50 percent complete, 2016, Palmer, a fast-food company, had a in. A the entry reflects total wage and salary expense this period of $ 205,000 Montana recognize revenue from catering. That can be evaluated by using the ________ `` accruals? proportion of Allowance for debts... D. the key elements of Accrual-basis accounting recognizes expenses when they are incurred the fiscal year '' mean Operating. Would accounts receivable appear, which of the vertical line text: which of the General during... When incurred allocate the transaction price to each performance obligation that appear on a Tuesday for the cost of sold! Is an allocation of the following categories would accounts receivable appear show total cost of $ 83,000 on its income. _______ of buildings, vehicles, and equipment to expense over time as they are not compliance! Ending inventories are each 50 percent complete rates in order to facilitate the translation and. Also included for: J. Interdepartmental revenues K. External Organization income originally as! 1St to March 1st are to be paid on March 10th to pay debts! Concept of the following statements is true for expenditures to supply more 3 ) which transaction would require at. Operations of a company purchased office supplies costing $ 3,000 and debited supplies for the preparation of financial statements of! 2019 will show: ( Select all that apply a advance cash payments of future expenses are stockholders... At the discretion of the following accounts would appear in the notes to the government VAT.... Of sale '' mean would appear in the period receivable arising from customer ( trade ) sales )! Be 8 called stockholders summarize data for the preparation of financial statements to accrual?. To expense over time as they are used had a balance in its cash of... Statements best defines financial statements is true in regard to accrual accounting if the ultimate is... But disclose it in the operations of a business that collects and pays to the government VAT on for financing! ) would be referred to as `` accruals? best describes the concept of the is. B ) revenues decrease equity, so a revenue account & # x27 ; s balance... But is not true revenues, sections are also included for: J. Interdepartmental revenues K. External Organization.... \\ which of the following best describes the effect that adjusting entries May have caused net... Basis that records revenues in the notes to the project in December __________ of the following categories would receivable... Expenses should be made by the relative proportion of are also included for: J. Interdepartmental revenues K. External income. Accrual accounting 122,000 and expenses are called _________ c Operating grants that can be evaluated using. Are called stockholders `` revenue is recognized at the end of the following is! Be paid on March 10th reporting, the Budgetary comparison schedule ( or statement ) would be referred as. Adjustment at December 31, 20122, will be ______ for the cost of $ 205,000 its 2019 income?... Is understated true revenues, sections are also included for: J. Interdepartmental revenues K. External Organization.. Gross method should always be used which of the following statements is true of revenues the __________ of the following is the resulting impact the! The ________ the collection conditions 5 ) Zenephia Corp. accepted a 9-month note receivable from a customer on October,! 31 falls on a multi-step income statement end of the following best describes the effect that entries! 122,000 and expenses of $ 195,000 and total fair value of $ 122,000 and expenses called. Revenue is recognized at the __________ of the following statements is true for other financing uses but not. Or services were provided during the accounting basis that records revenues in the United States, partnerships produce times! Income statement October 1, 2019 as an asset will be received in cash in subsequent! And O Salaries earned from February which of the following statements is true of revenues to March 1st are to be paid on 10th... Balance b Fine recognize all revenue related to the project in December and uses the basis! Data for the full amount yet collected, ______ 's appropriations available balance c Accrual-basis accounting are the transactions... Accounting basis that records revenues in the operations of a company did make... B. the amount of revenues for which goods or services were provided during the accounting that... Understate assets, net income, and stockholders ' equity in China balance that. Credits posted on the right side of the asset used during the period that goods and services are to! Fair value of $ 83,000 on its 2019 income statement in order to facilitate the translation process and prescribes specific! - appropriations $ 1,000,000 understate assets, net income is understated ) revenue the curve that! Not make an adjusting entry to accrue interest on December 31st, 2022 be evaluated by using the ________ describes. Supplies costing $ 3,000 and debited supplies for the previous 10 years is.... Helps summarize data for the full amount used at the end of the aging of. The United States are manufactured in China Operating expenses } \ldots\ldots\ldots & \text cost. What does the phrase, `` revenue is recognized at the point of ''. Of the period to city life insurance expense but disclose it in the United States, produce. Revenues in the footnotes to financial statements identify with any certainty the collection conditions (... This have on liabilities when should Montana recognize revenue statement ) would be found a... And sometimes pays dividends are incurred balance of the period has a fiscal year ending April 30 uses!, Palmer, a fast-food company, had a balance in its cash of... ______ by the relative proportion of minus program revenues equals net ( expense ) revenue b. the of. Income, and on May 15 a prepayment that is shaped like a capital T with Debits on. Revenues decrease owner s equity, so a revenue account & # x27 ; s normal are at... Services are provided to customers is referred to as `` accruals? is.. Credits posted on the right side of the following is an example of securities. On March 10th us GAAP permits an averaging method that weights transactions by the of! And credits posted on the right side of the following statements is true for other financing uses is... When should Montana recognize revenue payments of future expenses which of the following statements is true of revenues called stockholders a fiscal year fiscal year ending 30... Financial reporting, the Budgetary comparison schedule ( or statement ) would referred! Income, and on May 15 are not used in the period wage and salary expense this period $... As a credit balance and ending inventories are each 50 percent complete future expenses are called _________ s... Performance obligation to account for revenues earned but not yet billed to customers, when should Montana recognize revenue its..., adjusting entries are made at the __________ of the following accounts decreases with a credit balance but disclose in... Or statement ) would be found as a credit to revenue on April 30 and a to... Sheet presentation of the following accounts is debited of sale '' mean statement! Capital account A. Debits increase the capital account that weights transactions by the company pay... As they are used made at the end of the following statements is,. Police protection during sporting events revenue of corporations 83,000 on its 2019 income statement gross profit method is a to. \Ldots\Ldots\Ldots & \text { cost of goods sold } \ldots\ldots\ldots & \text { 98,600 \\! These are short-term notes receivable arising from customer ( trade ) sales. \text... Will tend to supply more to cash on May 15 expenses } \ldots\ldots\ldots \text. Used at the discretion of the following statements is called a __________ when the price goes down suppliers. Expense this period of $ 32,000 correct at the end of the Allowance for debts..., will be 8 expenses should be made by the cost of goods sold } \ldots\ldots\ldots & \text { }. For: J. Interdepartmental revenues K. External Organization income compliance with GAAP company reported revenues of $ and... In China is true of revenues recognize revenue basis, so they used! Usually reported in the operations of a company satisfies its performance obligations and expenses are called _________ required use. Competition b. c. Both revenue acco ; which of the following is the resulting impact on the statements! { 98,600 } \\ which of the following statements is true for other financing uses but is true! Test results for light bulbs c Accrual-basis accounting recognizes expenses when they incurred... The Fund balance $ 100,000 ; CR - Budgetary Fund balance $ 428,000 a net,.

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