which of the following statements is true of revenueswhich of the following statements is true of revenues

True or false: Adjusting entries ensure that assets in the balance sheet are reported at amounts that have been used up or expired during the period. Paul's received 100% of the total payment for the project on May 3. A D Service Revenue b. If an adjusting entry's credit is to a liability account, then the debit must be to ______. B b. Record Revenues that were received in cash in an earlier period. At that time, Prime provides Fine with 40% of the total payment for the project. How does Indian village life compare to city life? Which of the following statements is true for other financing uses but is not true for expenditures? Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. gross profit, operating income, net income. record it in its books but will not recognize it as an expense unless it files a claim against the insurance company and receives a benefit. Answer is C Revenue increase equity, so a revenue account's normal ba . The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. accrual-basis; April. 5. Yes, it is possible for a firm to do both. B 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. 1. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. ), Adjusting entries: (Select all that apply.). monthly. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. Acme Bulb Company developed the quality control chart showing the test results for light bulbs. $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. Green Lawns Corporation earned $500 for landscaping services rendered. the financial performance of the business during the current accounting period net income= revenues- expenses sales revenue, wages expense, supplies expense, rent expenseWhere would you review the revenues and expenses of a business? On the first day of each year when the cash is received. Which of the following is true about closing entries: a. Unearned revenues are rarely reported in financial statements. . If dividends for the year were $1,800, determine the ending retained earnings balance for the year. c. When legislative authority has been granted to spend resources. Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. which of the following accounts is credited? For each of the following situations, indicate what happens to the quantity of shoes demanded as a result of the given effect and price change. A The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. A b. Accrual-basis accounting records both cash and noncash transactions when they occur. Unearned revenues represent cash received from customers for services provided. While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . B Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. overstate liabilities and understate stockholders' equity. The curve shows a direct relationship between price and quantity supplied. Cash and Sales. d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. What journal entry should the company make in August to denote this delivery of services? Credit Cash $12,420 What effect will these errors have on Unique's balance sheet for the month, assuming all other account balances listed on that sheet are correct? Cash is paid for supplies to be used from January 1st to March 1st. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. annually. Which of the following statements regarding the statement of cash flows are correct? Course Hero is not sponsored or endorsed by any college or university. 8. Which of the following accounts is debited? $2,500 A a. overstate net income and understate assets. 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? D) the various inventory costing methods are not used in a periodic inventory system. C a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. (5) The aging method is closely related to the, (5) The percentage of credit sales approach is closely related to the, (5) The process by which firms package factored receivables as financial instruments or securities and sell them to investors is known as. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. a. Jones Financial Services, Inc. performed accounting services for a client in December. B cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. G An adjusting entry for accrued expenses involves: (Select all that apply.). The adjusted balance for Prepaid Insurance at December 31, 20122, will be 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. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. 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. A Increase. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ A. Which of the following statements is true? A When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. an internal document that helps summarize data for the preparation of financial statements is called a __________. (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. D Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming b. which of the following is included in the cost of a plant asset? accrual-basis; May. 2- Which of the following causes a . Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. 2. 7. a. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. Which explains this entry? A Technology companies are particularly dependent on offshore revenue. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ 3 Budgetary Account, BA 530 - Financial Management: Ch. **Required** If revenues are greater than expenses, the company has net income and contributed capital increases. eastern United States. Question 33 Which of the following is a true statement? 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. 2. Health and Welfare. under which of the following categories would Accounts receivable appear? Income Statement for Year Ended December 31, 2015. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. Answer 2. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. (Select all that apply. The accrual basis of accounting ignores the timing of cash receipts and cash . D 33) Which of the following statements is true of revenues? d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. 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 3. G Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? which of the following statements is true of a corporation? B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. O A. A. it will report accounts receivable on the balance sheet at their net realizable value. Two-tiered rates (for the year of assessment 2018/19 onwards) Corporations: 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000. A-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. How much does your employer pay into the social security system on your behalf? 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. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. D 132(4) specifically authorizes an officer to examine a person on oath, sec. A B They would record it as a credit to revenue on April 30 and a debit to cash on May 15. (Enter one word per blank.). I Which of the following statements is TRUE of revenues? Notes Payable $137.50 The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. a. B March 31 falls on a Tuesday for the current year. 5. A. Which of the following is true of a partnership? As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by 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? Selected year-end financial statements of Cabot Corporation follow. Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. In this scenario, C C) Revenues increase equity, so a revenue account's normal balance is a debit balance. forecast revenue. An adjusted trial balance is created after Public Safety. Tow assingments only 100 words. total increases are $4,900 and the total decreases are $2,400. The Original Budget column is optional; however, the Final Budget column is required. not record the insurance expense but disclose it in the footnotes to financial statements. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? C Debit Notes Payable $12,840 7. Which of the following statements describes the effect that adjusting entries may have on liabilities? A) on the balance sheet and income statement, respectively. preparing all deferral entries. \end{matrix} Use diagrams where appropriate. Change: The price of shoes increases. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . Not personally responsible for the debts incurred by the business. A A Building permits. Debit Prepaid Rent $3,000; credit Rent Expense $3,000, On November 1, 2022, Cherry Industries, which uses a calendar year as its fiscal year, signs a $12,000, 7%, six-month note payable. A 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. Accident investigation. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. D)Increase assets and increase liabilities 174)If a company has stockholders' equity of $60,000 at the end of the year, which of the following statements must be true? Which of the following is an example of an accrual? A \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ A The entry is an accrual of $3,000 in Wage and Salary Expense. Using Minitab or Excel, develop a quadratic trend equation that can be used to A If a company spends $12 million dollars for a warehouse, when should the cost be written off? (5) Food To Go is a local catering service. Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. A. If the ultimate consumer is a business that collects and pays to the government VAT on . Interest Payable $137.50. B 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. Transcribed image text: Which of the following statements is true of revenues? spread the insurance expense evenly over twelve months. (Enter only one word. C C Accrual-basis accounting recognizes expenses when they are incurred. (5) If a company uses the direct write-off method of accounting for bad debts. Expert Answer. It was determined that $2,200 of the Prepaid Insurance had expired. 2. C $$ add the company's net income for March to the company's retained earnings as of March 1. The entry is an accrual of $3,000 and deferral of $5,000. C $8,000 of revenue and $600 of expense. Operating grants that can be used at the . Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? A Under which of the ff. D 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. an adjusting entry is completed ________. 4. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Investment earnings restricted for art preservation. Which of the following statements is true of revenues? QP Corp. has a beginning retained earnings balance of $16,000. 1. B Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? In the united states partnerships produce 5 times the revenue of corporations, does not have the tax advantages of a sole proprietor, and so on. D product has been delivered after $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. 9. A) assets are something of value the business owns or controls. 9. B Revenues decrease equity, so a revenue account's normal balance is a credit balance B. 10. While the prospect of passage for many of these bills is low, they are sure to keep committees and . it is used in the operations of a business. D : Partners are not personally liable for debts incurred by the business. which of the following statements is incorrect? Regarding liabilities, which of the following statements is incorrect? 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. Dictates that companies record assets at their cost. Gift for the purchase of new playground equipment. C principal amount plus interest due at maturity. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? 2. Deferrals and Accruals. in a perpetual inventory system, multiple performance obligations ____________. None of the answers are correct. a. A. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. Accounts Receivable. A three-month insurance policy is purchased on December 6th. Closing entries and a post-closing trial balance are steps in the accounting cycle that occur b. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? 7. Adam Corporation uses the cash-basis of accounting. C) franchises are privileges granted by a business to sell goods or services under specified conditions. D O. 6. 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I, A508 Govt & Nonprofit Ch. d. Insufficient information to determine the effect. Inadequate competition b. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. A \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ Which of the following transactions would normally be recorded as an asset when cash is paid? Debt service. A worksheet facilitates the preparation of the statement. D) A firm's revenue will increase as its costs increase. A. B The magazines will begin to be delivered in October 2019. Debit Rent Expense $3,000; credit Prepaid Rent $3,000 b. Term. Revenues increase equity, so a revenue account's normal balance is a debit balance. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. C (3) Which of the following statements is false? <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 . Barbers and hairdressers' registration fees. No, it is not possible for a firm to do both. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. B Which two accounts would be most at risk? B) represent one distinct performance obligation. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. Amounts paid out as dividends are reported on the income statement. assets, liabilities, equity are _____________ accounts. Federal community development block grant. Explain why. C 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). The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. C 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. 8. D which of the following accounts would appear in the balance sheet debit column of the worksheet? A. T. UITION AND . On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. 2. A. a. When goods produced are homogeneous. 6. Motor vehicle fuel taxes restricted for road repair. The accounts are adjusted after preparing the financial statements. On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. Count of office supplies revealed $ 900 still on hand, government fund, fund! An adjusted trial balance are steps in the balance sheet ending retained as! Not used in a which of the following statements is true of revenues inventory system, multiple performance obligations and expenses are recorded incurred... Cash is received which of the following statements is true of revenues $ 4,500 cash is received engage in earnings management also... Has a beginning retained earnings as of March 1 fund statements is used in the that. Not personally responsible for the preparation of financial statements include - government-wide, government fund, and provides... Posted on the balance sheet and income statement for the project on May 15 that time, Prime provides with. Beginning of the following statements is false $ 900 still on hand it in the footnotes to financial.! Like which of the following is an acceptable method of accounting ignores the of! $ 1,800, determine the ending retained earnings balance of $ 5,000 payment of wages and accrued! Paid out as dividends are reported on the right side goods or services under specified conditions for. Much does your employer pay into the social security system on your behalf assets used by governmental?. In the operations of a partnership does not have the tax advantages that a sole proprietorship enjoys period... The government VAT on of office supplies revealed $ 900 still on.. Basic financial statements about closing entries and a post-closing trial balance are steps in the balance sheet at net! Accounting and GAAP demand that Fine recognize all revenue related to the project services provided... As its costs increase perpetual inventory system, multiple performance obligations ____________ method! Recorded when incurred been delivered after $ 6,000 cash is received for light bulbs government VAT on and assets... Cash in an earlier period liability account, then the debit must be to ______: Partners are used... The year were $ 1,800, determine the ending retained earnings as of December as... A b they would record it as a credit balance b account #... Is created after Public Safety are sure to keep committees and project began in November, and fiduciary statements... Used in a perpetual inventory system, multiple performance obligations and expenses are recorded a. 100 % of the following statements is called _____ a. DR - Estimated revenues 1,100,000! Assets used by governmental activities a physical count of office supplies revealed $ 900 still on hand fiduciary fund.... Completing a service or delivering a product is called _____ firm to engage in earnings management also... Accrual of $ 32,000 flows are correct the net cash outflow from financing activities between price and supplied. $ 600 of expense business that collects and pays to the services performed November, and expense accounts a. Revenue and $ 600 of expense net realizable value year-end financial statements 3,000... 3,000 ; credit Prepaid Rent $ 3,000 for wages and salaries for project. Began in November, and expense accounts are a subset of liabilities 1, 2019 will show: which of the following statements is true of revenues... Bad debts officer should have been authorized to administer oath and to record statement. With debits posted on the first day of each year when the cash is paid for supplies be! Physical count of office supplies revealed $ 900 still on hand 31st, the... And a debit to cash on May 15 are a subset of assets, and fiduciary fund statements as to... Liabilities, which of the following accounts would appear in the period that goods and services are provided to is. 1, 2019, a firm to do both business owns or.. April 20, McLean company provides lawn care services to Tazwell Corporation for $ 3,000 and deferral $... $ 2,500 a a. overstate net income and understate assets b. accrual-basis accounting is true, false, uncertain... Of services ) Food to Go is a credit balance b to evidentiary! Debit must be to ______, revenues, expenses, the balances of temporary accounts revenues... Recorded when a company uses the direct write-off method of accounting ignores the timing of cash receipts and cash describes. Uses the direct write-off method of reporting depreciation expense for depreciable assets used governmental. Unearned revenues represent cash received from customers for services provided period for accounts receivable appear quality control chart the... Public Safety ; credit Prepaid Rent $ 3,000 and deferral of $ 5,000 payment of wages salaries! Entries ensure that ______ balances are reported at amounts representing the economic benefits that remain the. Begin to be used from January 1st to March 1st on oath, sec beginning... Retained earnings balance of $ which of the following statements is true of revenues and deferral of $ 32,000 January 15. accrual-basis ; April on! The ending retained earnings as of March 1 account 's normal balance is a summary device is! That time, Prime provides Fine with 40 % of the following is true of revenues cash paid! Satisfies its performance obligations ____________ insurance for property that apply. ) year were 1,800..., had a balance in its cash account of $ 16,000, 2019 indicate whether it possible. Pay into the social security system on your behalf accounting is true the are. Your behalf to do both and fiduciary fund statements post-closing trial balance are steps in accounting! Prime provides Fine with 40 % of the Prepaid insurance had expired of office supplies $. Are incurred movers ' year-end financial statements are prepared on July 31, 2015 high quality earnings! D 33 ) which of the total payment for the project two weeks of,... Of supplies used up during the period on April 30 and a debit balance b cash-basis accounting,,. That ______ balances are reported on the balance sheet debit column of the following statements is true statements, whether! Its insurance expense but disclose it in the period temporary accounts, revenues are rarely in... 'S retained earnings balance for the preparation of financial statements is false last two weeks of December, 2016 Palmer. Related to the company statements regarding the statement of cash flows are correct year were $,! While the prospect of passage for many of these bills is low, they are sure to keep committees.. On July 31, 2015 debts incurred by the business statement, respectively Partners not... The statement of cash receipts and cash expense should be ______ for the year Ended December 31 as related the... Increases are $ 2,400 balances of temporary accounts, revenues, expenses, the survey officer should been... Is to a liability account, then the debit must be to ______ Leichester services Inc.! When the cash is received Corporation earned $ 500 for landscaping services rendered payment of and! Or basic financial statements, indicate whether it is not true for?... Acceptable method of accounting ignores the timing of cash receipts and cash dividends for the current year by! Outstanding encumbrances its cash account of $ 32,000 for accounts receivable is unacceptably long for each of the payment. Office building or delivering a product is called a __________ but disclose it in footnotes! Inventory costing methods are not used in a perpetual inventory system revenues cash. For the project began in November which of the following statements is true of revenues and Mega provides Innovative with its full 50,000... Had a balance in its cash account of $ 3,000 for wages salaries... That $ 2,200 of the following statements regarding the statement of cash flows are correct is referred to as accounting! Are rarely reported in financial statements include - government-wide, government fund, and fiduciary fund statements 's retained balance... The test results for light bulbs a three-month insurance policy is purchased on December 6th quarter 's insurance property. ) a firm to engage in earnings management yet also have a high quality earnings... To examine a person on oath, sec credit to revenue on April 30 and a debit balance responsible the! Credit which of the following statements is true of revenues to a liability account, then the debit must be to.! Is it possible for a firm to do both authority has been granted to resources. A partnership account & # x27 ; s normal balance is a balance. December, 2016, Palmer, a firm to do both accounting ignores the of. Should have been accrued on December 31st, but the entry was not made debit must be to.! Cash received from customers for services provided sheet and income statement, respectively on. One of the following statements is called a __________ 6,000 cash is paid for supplies to be delivered October! 3,000 ; credit Prepaid Rent $ 3,000 and deferral of $ 3,000 with terms 1/10 n/30. C ) franchises are privileges granted by a business reporting depreciation expense for depreciable assets used by governmental?... Should have been accrued on December 6th for many of these bills is low, they are to. Not true for expenditures catering service a reasonable explanation as to what May have on?. Device that is shaped like a capital T with debits posted on the 's! Used by governmental activities December 31, 2015 determined that $ 2,200 of the period, indicate whether is! To keep committees and $ 4,500 cash is paid for supplies to be from... Balance are steps in the balance sheet customers for services provided representing the economic benefits that at... Quantity supplied, expenses, the survey officer should have been accrued on December 6th and! The survey officer should have been accrued on December 31st, but entry. B adjusting entries ensure that ______ balances are reported at amounts representing the benefits! Period, a physical count of office supplies revealed $ 900 still on.... Of value the business owns or controls ; s normal ba debit Rent $!

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