Why or why not? D Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. A On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. A. (Enter one word per blank). A. Neverthe gross method should always be used. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. Meadows Manufacturing has a March 15th year-end date. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? B. B (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. Most PCs manufactured in China use microprocessor chips . Amounts received from issued stock are reported on the income statement. Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . At the end of the year only permanent accounts are closed c. . Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. principal amount plus interest due at maturity. 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. 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. B)Total revenues during the year equal . Which of the following statements is true about revenue? P in a perpetual inventory system, multiple performance obligations ____________. E.There is no way to identify with any certainty the collection conditions . debit Supplies $2,500; credit Supplies Expense $2,500. got it correct. 7. Cash is paid for supplies to be used from January 1st to March 1st. 9. a. stockholder's equity is understated. \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ 132(4) specifically authorizes an officer to examine a person on oath, sec. C (5) Food To Go is a local catering service. an adjusting entry is completed ________. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? common stock is a separate account in the ________ category of the accounting equation. Record Rent Expense that was prepaid. 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. At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. An adjusted trial balance is created after B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. b. ), Under cash-basis accounting, (Select all that apply. Gift for the purchase of new playground equipment. D Deferrals and Accruals. an internal document that helps summarize data for the preparation of financial statements is called a __________. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. add the company's net income for March to the company's retained earnings as of March 1. C ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). $20,000 Accident investigation. Investment earnings restricted for art preservation. Which of the following best describes the recommended format for the government-wide statement of activities? On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Term. Cash and Sales liabilities are understated. (3) Which of the following statements is false? B <p class="SectionHeads">Purpose</p> <p>The job of Accountant II is done for the purpose/s of performing a variety of moderately complex professional accounting duties . Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. **Required** An increased household income is associated with an increase in the revenues flowing to firms. Amounts paid out as dividends are reported on the income statement. D C overstated; $1,725. OU 3. which of the following accounts would appear in the balance sheet debit column of the worksheet? d. When goods or services are ordered. A. C Explain why. Which of the following statements describes the effect that adjusting entries may have on liabilities? 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. Which of the following statements is true regarding this supply curve? A Unearned revenues are not related to cash collections. Traffic tickets. 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. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. \$201 + \$743 + \$6198 d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. B Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. A. Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. Debit Notes Payable $12,000 D Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. which of the following statements is true if a bond's stated interest rate is higher than the market rate? ), Adjusting entries: (Select all that apply.). Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. (Enter one word per blank. The entry is an accrual of $3,000 and deferral of $5,000. restrictions on retained earnings are _________. A What does the periodicity assumption state? 8. Increase. b. B 10. 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. $$ C \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ D The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? C Sales and Accounts Receivable C) Revenues increase equity, so a revenue account's normal balance is a debit balance. under which of the following categories would Accounts receivable appear? The entry is an accrual of $3,000 in Wage and Salary Expense. 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. 8. G 6. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. Police Department. b. 2. How do the following circumstances sometimes lead to market failure? Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. C If an expense has been used or consumed but a bill has not been received at the end of the accounting period, which of the following is needed? An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. A) Revenue is the total amount received for selling a good or service. overstate assets and net income. B accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ When there is no beginning inventory. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. The financial statement that shows the financial position of a company at a point in time assets=liabilities+stockholder's equity cash, receivables, supplies, equipment, accounts payable, notes payable, common stock, retained earnings, the accumulation of earnings retained in the business during the current accounting period with that of prior periods beginning retained earnings+common stock-dividends*net income from the income statement, dividends are amounts distributed this period, activities that cause increases and decreases in cash during the current accounting period, these cash flows arise directly from running the business to earn profit they include cash received from selling apps and services, and cash paid for wages, advertising, rent, insurance, supplies,etc, These cash flows arise from buying and selling productive resources with long lives (such as buildings, land, equipment, and software), purchasing investments, and lending to others. 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. which of the following liabilities is created when a company receives cash for services to be provided in the future? Which of the following is an example of a deferral? Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. D) usually reported in the notes to the financial statements. Q: revenues ew less than expenses, what . c. When legislative authority has been granted to spend resources. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? $$ D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. A cost is something used up to produce revenues in a particular accounting period. 2- Which of the following causes a . Which of the following is correct concerning the presentation of the budgetary comparison schedule? $$ 6. 5. A worksheet facilitates the preparation of the statement. They would record it as a credit to revenue and debit to cash on April 30. 6. If Innovative's accounting staff recognizes all revenue related to the Mega project in December, which of the following statements is accurate? Prepaid expenses should be ______ by the cost of the asset used during the accounting period. Under the cash basis of accounting Eastern will Debit Notes Payable $12,840 A C c. Expenses minus program revenues equals net (expense) revenue. In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. This would also be apparent from section 132(4). Option a is true. A A The entry reflects total wage and salary expense this period of $8,000. A special assessment for snow removal. 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. (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. C A. O. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Gloria pays her insurance three times each year. If an adjusting entry's credit is to a liability account, then the debit must be to ______. a. What journal entry should the company make in August to denote this delivery of services? LP a. $5,000 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 city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? (Enter only one word. Group of answer choices. advance cash payments of future expenses are called _________. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? The answer is A. Debits increase the capital account . Sales and use taxes levied by the government. B When an obligation is incurred that will be paid from current financial resources. B 1. D) Revenues . Final answer. Andy should: (Select all that apply.). A a. 10. which of the following statements is true of a corporation? As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by Unearned revenues represent cash received from customers for services provided. Meadows Manufacturing follows the accrual basis. : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . A. (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? Green Lawns Corporation earned $500 for landscaping services rendered. Acme Bulb Company developed the quality control chart showing the test results for light bulbs. B. B. Paul's received 100% of the total payment for the project on May 3. b. Accrual-basis accounting records both cash and noncash transactions when they occur. A When should Mainzel recognize the related revenue using accrual accounting? a. Construct a time series plot. C) businesses must obtain a physical count of inventory to determine quantities on hand. Record Wage Expense that is incurred and paid in the same period. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. It was determined that $2,200 of the Prepaid Insurance had expired. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. 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. A. A B.More tax revenue is raised if a tax is collected from producers. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Debit Notes Payable $12,420 P 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. subtract the company's net income for March from the company's retained earnings as of March 31. Credits/debits. Mayor's Office. Your pie chart must be wrong, because you have the 45%45 \%45% frequency wedge near the upper left and the answer key shows it near the lower right. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. (3) Which of the following statements is true? The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ which of the following statements is true of revenues? C Accrual-basis accounting recognizes expenses when they are incurred. a. Create a chart showing how each of the conditions below might cause market failure. assets are understated. Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? The effect of air revenue is overstated, which of the following statements is correct. What should he do with the figure he calculates at the bottom of this statement? 24. Which of the following statements is true for other financing uses but is not true for expenditures? On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. The following income statement and balance sheet information are available for two firms, Firm A and Firm 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 |
Under which of the ff. Solve. (Enter only one word.). The adjusted balance for Prepaid Insurance at December 31, 20122, will be Which of the following has an asset-expense relationship? 6. which of the following accounts is credited? Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . M $20,000 \ C Prepare the adjusting entry. \text{Interest expense} \ldots\ldots\ldots & \text{4,100}\\ c. Variable costs are direct costs; only . A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. 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. Norbert Inc. delivered goods and services during December. liquidity is a measure of how ____________. Using Minitab or Excel, develop a quadratic trend equation that can be used to \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ Which of the following accounts increased as a result of this transaction? quarterly. $1,200. How does Indian village life compare to city life? An accrual results when ____________ and a deferral results when the maturity value of a note is the _______. Interest Expense $825 P Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. Which of the following is the correct journal entry to record the budget? which of the following is the correct order of subtotals that appear on a multi-step income statement? A : A partnership must have more than one owner. Retained Earnings C They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. A) those transactions have already been recorded in the company's journal.