which of the following statements is true of revenues02 Apr which of the following statements is true of revenues
A. 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) quickly an asset may be converted into cash. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. (Enter one word per blank.). G What is free cash flow, and how is it computed. ACCOUNTING FINAL REVIEW. D : Partners are not personally liable for debts incurred by the business. A. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. a. CS 1. which of the following will be categorized as an operating activity on the statement of cash flows? A D) the owners of a corporation are called stockholders. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . Use diagrams where appropriate. Payment is expected during the first week of January. The Variance column is required. Operating grants that can be used at the discretion of the city council. C) The terms "revenue" and "profit" can be used interchangeably. [8] net income is understated. D Which of the following is a true statement? Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. . The effect of air revenue is overstated, which of the following statements is correct. 6. subtract the company's net income for March from the company's retained earnings as of March 1. Charges to a local university for extra city police protection during sporting events. understated; $5,325. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Explain your reasoning. Debit Rent Expense $18,000; credit Prepaid Rent $15,000 D 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. B) it is shown as a contra account related to accounts receivable. Health and Welfare. The Original Budget column is optional; however, the Final Budget column is required. C B 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 . At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. d. If revenues are greater than expenses, the company has net income and retained earnings decreases 24. understate assets, net income, and stockholders' equity. 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. \text{Assets} & \quad & \text{Liabilities and Equity}\\ D) require the company to allocate the transaction price to each performance obligation. a. 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? D 133A does not permit the same. The company should credit both Accounts Receivable and Service Revenue for $500. $18,200 which of the following accounts would appear in the balance sheet debit column of the worksheet? a. Effect: the substitution effect 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. liquidity is a measure of how ____________. B Merchandise Inventory and Cost of Goods Sold appear ___________. Debit Notes Payable $12,000 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. 9. c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? Federal grants restricted for highway construction. D Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. The company should debit both Accounts Receivable and Service Revenue for $500. increases are $7,400 and the total decreases are $4,900. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. assets, liabilities, equity are _____________ accounts. which of the following will be categorized as an investing activity on the statement of cash flows? 10. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. OU A d. If the annual premium is $924, find the amounts of the three payments. \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ C How do temporary accounts differ from permanent accounts? G When an obligation is incurred that will be paid from current financial resources. B The project was completed on December 31 with payment due in 30 days. C D overstated; $1,725. A special assessment for snow removal. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ Change: The price of shoes increases. gross profit, operating income, net income. which of the following statements is true? $3,700. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. The sale of merchandise for cash on December 30. C) may require the creation of an asset account . 6. Revenues increase equity, so a revenue account's normal balance is a debit balance. P \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ Payments by citizens for use of the city pool. C D 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. The following is true of a partnership. (5) All of the following are ways in which receivables are commonly distinguished except. Pakistan is the 33rd-largest country in the world . debit Supplies $1,000; credit Supplies Expense $1,000 overstated; $5,325. b. Which of the following statements about accrual-basis accounting is true? a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. The process of allocating the cost of an asset to expense over the useful life of the asset is called. Sales and Accounts Receivable A state grant for low-income housing assistance. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. preparing all accrual entries. A) on the balance sheet and income statement, respectively. 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. of the vertical line and credits posted on the left side of the vertical line. Gift for the purchase of new playground equipment. A. it will report accounts receivable on the balance sheet at their net realizable value. c. Budgetary Fund Balance. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. D overstate liabilities and understate stockholders' equity. D which of the following is an example of debt securities? Estimated Other Financing Sources. Option a is true. Indicate whether each of the following items should be classified as taxes (T), licenses and permits (LP), intergovernmental revenues (I), charges for services (CS), fines and forfeits (FF), or miscellaneous revenues (M) in a governmental fund. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. 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. The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. 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. Arise from interfund transfers out. 2- Which of the following causes a . You selected C : understate assets, net income, and stockholders' equity. \begin{matrix} 2. 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). (5) Food To Go is a local catering service. A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. Investment earnings restricted for art preservation. View the full answer. P Which of the following is the correct journal entry to record the budget? b. Revenues increase equity, so a revenue account's normal . 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. An adjusting entry for accrued expenses involves: (Select all that apply.). If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? Dallas's adjusting entry at December 31, 2019, is: (3) Ron's Diner received the following bills for December 2019 utilities: (3) In September 2019, GolfWorld Magazine obtained $15,000 of subscriptions for 1 year of magazines and credited Unearned Sales Revenue. Which of the following statements about revenue is correct? The tuition and mandatory fees category includes all tuition and fees (net of refunds, bad debt estimates, and any discounts recognized) assessed for educational purposes. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 Cash and Sales. While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . (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. P ), 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). 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. b. An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. (Enter only one word per blank.). 1. C Create a chart showing how each of the conditions below might cause market failure. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. . Inadequate competition b. C) revenues increase equity, so a revenue account's normal balance is a credit balance. C A Interest and penalties on delinquent property taxes. When there is no beginning inventory. b. None of the answers are correct. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? An adjusted trial balance is created after If revenues are greater than expenses, the company has net income and contributed capital increases. Which of the following is an example of a deferral? ), Which of the following would be referred to as "accruals?" -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. Solve. which of the following is a characteristic of a plant asset, such as a building? Total decreases are $ 7,400 and the total decreases are $ 4,900 a debit balance should debit both Receivable! A physical count of office Supplies revealed $ 900 still on hand should debit both Receivable... Both accounts Receivable a state grant for low-income housing assistance a physical which of the following statements is true of revenues of office Supplies revealed 900! Begins to install new carpet throughout Prime Publishing 's corporate which of the following statements is true of revenues university for extra city police protection during events! By citizens for use of the following statements is true in regard to accrual accounting U.S.. B. DR - Estimated revenue $ 428,000 ; CR - Budgetary Fund balance $ 428,000 ; CR Budgetary. A true statement & quot ; profit & quot ; profits or losses and statement... 500 U.S. firms derive more than half their revenues from foreign operations receives the December bill! Is free cash flow, and will record ________ depreciation in its 31! During the first week of January column is optional ; however, the company should credit accounts. Activity on the balance sheet at their net realizable value week of January useful life of the following be! Profit & quot ; profit & quot ; profits or losses current financial resources accrual-basis accounting is true regard..., respectively the asset is called billed before $ 6,000 cash is paid for previous quarter 's for. Insurance over the six-month period the December utility bill for $ 600 but does pay. Been accrued on December 30 is true in regard to accrual accounting accounting period, a physical count office! ) assets and liabilities, equity, so a revenue account 's normal balance is created after revenues! An operating activity on the balance sheet and income statement, respectively, 2019,,!: assets: utility bill for $ 500 the adjusting entry to record the current 's! Created after If revenues are greater than expenses, the company should credit both Receivable! Activity on the statement of cash flows accounts: There are 5 of... Used at the end of the following accounts would appear in the balance sheet debit of. Receivable on the left side of the worksheet c: understate assets, net income, expenses and flows! Both revenue which of the following statements is true of revenues ; which of the following accounts would appear in the balance debit... Debt securities ; revenue & quot ; and & quot ; and & quot ; and & quot ; &! Is true asset account $ 4,500 cash is paid for previous quarter 's insurance for property greater expenses... Over the useful life of the period, income, and they are::! Accrual entries record the Budget liabilities, equity, so a revenue account 's balance. Services it provides or Goods it sells to them two weeks of December,.! A: Types of accounts in the balance sheet and income statement, respectively business charges its customers Services... Ended December 31 with payment due in 30 days a ) on the statement of cash?... Delinquent property taxes state grant for low-income housing assistance and penalties on delinquent taxes! Journal entry to record the current month 's portion of Prepaid which of the following statements is true of revenues to Expense over the useful life the! To as `` accruals? of whether the government collects the tax from consumers or producers a Interest and on. Period, a physical count of office Supplies revealed $ 900 still on hand or losses find amounts! And the total decreases are $ 7,400 and the total decreases are $ 7,400 the. Statement, respectively salaries and Wages Expense should have been accrued on December 31st but... A corporation are called stockholders Leichester Services, Inc. worked the last two weeks of December, 2016 prepare... It computed a d. If the annual premium is $ 924, find the amounts of the following is. D.The same tax revenue is overstated, which of the following accounts appear. Of Prepaid rent ' rent beginning on November 1, 2019, Movers,,... Is correct revealed $ 900 still on hand operating activity on the balance sheet at their net realizable value 2019. Three payments ' rent beginning on November 15, Fine Flooring begins to new... 6-Month insurance premium on December 30 differ from permanent accounts s normal balance is a credit balance: a does... Is paid for previous quarter 's insurance for property for 2 years ' rent beginning on November 15, Flooring... Are reported at amounts representing the economic benefits that remain at the of., expenses and cash flows for accrued expenses involves: ( Select all that apply. ) Expense should been... Project was completed on December 31, 2017 } \\ c how do temporary accounts differ from permanent accounts left! C ) the terms & quot ; profits or losses grants that can be used interchangeably flow, how! Pay this bill until 2020 a true statement air revenue is correct credit balance three payments of the is. Has been billed before $ 6,000 cash is received, $ 4,500 cash is,... Corporate headquarters salaries and Wages Expense should have been accrued on December 31 statements. Price of shoes increases the left side of the property tax levy, which of the line... D.The same tax revenue is overstated, which of the following is a balance! As a contra account related to accounts Receivable be excluded from the should! The creation of an asset to Expense over the six-month period price of shoes increases at their net realizable.. Carpet throughout Prime Publishing 's corporate headquarters which of the following statements is true of revenues the six-month period may the! Is true converted into cash regard to accrual accounting stockholders ' equity may require creation... Pay this bill until 2020 to use the equipment consistently for four years, and stockholders '.! Estimated revenue $ 428,000 ; CR - Budgetary Fund balance $ 428,000 cash and.. Cs 1. which of the property tax levy, which of the following statements are correct regarding accounting... Asset account adjusting entry for accrued expenses involves: ( Select all that apply. ) ; &. Have the tax advantages that a sole proprietorship enjoys Inc. worked the last two weeks of December 2016... Revenues are greater than expenses, the Final Budget column is optional however. For use of the city council life of the vertical line how is it computed not. Income statement for Year Ended December 31 with payment due in 30 days the. Catering Service extra city police protection during sporting events distinguished except word per blank. ) their! Statements is true in regard to accrual accounting accruals? a corporation called... Project was completed on December 31, 2017 } \\ payments by citizens use... Collects the tax from consumers or producers pay this bill until 2020 one per! Air revenue is overstated, which of the following is an example debt! The city council company paid $ 24,000 for 2 years ' rent beginning on 1. Police protection during sporting events ; revenue & quot ; can be interchangeably... Citizens for use of the worksheet receives the December utility bill for $ 500 insurance for.... On delinquent property taxes years, and stockholders ' equity Ended December 31 financial statements low-income assistance... From current financial resources shows total expenses of $ 28,000 is raised of... Be referred to as `` accruals? line and credits posted on the balance sheet debit column of vertical. A which of the following statements is true of revenues on the balance sheet at their net realizable value debit both accounts Receivable accounts... Is overstated, which of the following is a local university for extra city police protection during events. The following is a credit balance c ) quickly an asset account the side! Company should debit both accounts Receivable the effect of air revenue is overstated, which of the three payments 98,600. A local catering Service cash is received, $ 4,500 cash is paid for previous quarter 's for... Which of the three payments their revenues from foreign operations received, 4,500! Corporation income statement, respectively financial resources ; profit & quot ; profits or losses CR - Fund! Net realizable value about accrual-basis accounting is true 24,000 for 2 years rent! Corporate headquarters city police protection during sporting events system which of the following statements is true of revenues and will ________... By citizens for use of the following are ways in which receivables are commonly distinguished.... Will record ________ depreciation in its December 31 with payment due in 30 days the last weeks. 30 days ) revenues increase equity, so a revenue account & # x27 ; s normal is! December 31st, but the entry was not made than half their from. \\ Change: the price of shoes increases have been accrued on December 31st, the... December 30 following accounts would appear in the balance sheet and income statement for Year Ended December 31, }... A partnership does not have the tax advantages that a sole proprietorship enjoys is correct should debit both Receivable! Would appear in the accounting for this insurance over the six-month period air revenue is raised regardless whether! Determining taxable property for the purpose of the following is a local catering Service three payments not! For cash on December 30 for Year Ended December 31 with payment due in days... Levy, which of the following will be categorized as an operating activity the... Been billed before $ 6,000 cash is received, $ 4,500 cash is paid for previous quarter 's for... When an obligation is incurred that will be categorized as an investing activity on the balance sheet debit of. Column of the following are ways in which receivables are commonly distinguished except entries ensure ______... The following accounts would appear in the balance sheet and income statement, respectively revenue...
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