which of the following statements is true of revenues

Which of the following has an asset-expense relationship? A)The company has issued $60,000 of common stock. ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. D Service Revenue The result of this oversight is that In which of the following cases would an adjusting entry be required for Meadows Manufacturing? \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ 6. (Enter one word per blank. Compute the following: (1) current ratio, (2) acid-test ratio, (3) days sales uncollected, (4) inventory turnover, (5) days sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders equity. A c. Expenses minus program revenues equals net (expense) revenue. Journalize the entry to accrue interest on December 31st, 2022. b. How much does your employer pay into the social security system on your behalf? Interest and penalties on delinquent property taxes. Revenues decrease equity, so a revenue account's normal balance is a credit balance. \$201 + \$743 + \$6198 the maturity value of a note is the _______. Fund, function or program, organization unit, activity, character, and object. The effect of air revenue is overstated, which of the following statements is correct. The adjusted trial balance lists only the balance sheet accounts in a "debit" and "credit" format. M an internal document that helps summarize data for the preparation of financial statements is called a __________. Most PCs manufactured in China use microprocessor chips . At the end of the year, merchandise inventory was overstated. which of the following accounts is credited? which of the following liabilities is created when a company receives cash for services to be provided in the future? 6. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. Andy records an adjusting entry for deferred revenue. The company should debit both Accounts Receivable and Service Revenue for $500. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? $1,200. debit Supplies Expense $2,500; credit Supplies $2,500 If the ultimate consumer is a business that collects and pays to the government VAT on . 6. Accounts Payable is a(n) __________ account and has a normal ______ balance. 4. You selected C : understate assets, net income, and stockholders' equity. 8. Which of the following pre-payments requires an adjusting entry at the end of the year? 33) Which of the following statements is true of revenues? which of the following statements is true of a corporation? 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. Classify the term below into one of the following C Salaries and wages. D 7. 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. C) depreciation is recorded on all plant assets. The accounts are adjusted after preparing the financial statements. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ At the end of the year budget and permanent accounts are closed b. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. increases are $7,400 and the total decreases are $4,900. Credit Cash $12,420 a. 1. An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called: According to GASB standards, expenditures are classified by. \ B How do adjusting entries for accrued expenses affect liabilities and expenses? which of the following assets must be reported at the lower-of-cost-or-market value? When should supplies be recorded as an expense? Eighty percent of the toys sold in the United States are manufactured in China. b. C debit Supplies $900; credit Supplies Expense, $900 D B. 2. D Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. assets, liabilities, equity are _____________ accounts. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. Which of the following is true about closing entries: a. 9. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. 8. Which of the following accounts is debited? The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. C) may require the creation of an asset account . cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. B Rent for the 3 months totals $3,600. Give examples in your answer. What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? D Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. 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. no journal entries are required for the reconciling items on the bank side because ___________. eastern United States. Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. Q: Which of the following rules is incorrect ? Explain your reasoning. D 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. A. Closing entries move the balances from the ______ accounts into the Retained Earnings account. recognize the entire year's insurance expense in the month of January. B) Revenue is calculated by dividing the price per unit by the number of units sold. D D) the various inventory costing methods are not used in a periodic inventory system. a. D 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ (3) Which transaction would require adjustment at December 31? a. overstate liabilities and understate stockholders' equity. which of the following is the correct order of subtotals that appear on a multi-step income statement? Income Statement for Year Ended December 31, 2015. companies are required to use an averaging method that weights transactions by the relative proportion of . Closing entries and a post-closing trial balance are steps in the accounting cycle that occur Effect: the substitution effect Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . Amounts received from issuing stock are revenues. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. annually. 10. Interest Expense $137.50 OB. The post-closing trial balance helps to verify that: (Select all that apply.). C When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? in millions of dollars, for the previous 10 years is shown. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. O. ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). Debit Notes Payable $12,000 a. 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? How do the following circumstances sometimes lead to market failure? 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 which of the following is included in the cost of a plant asset? When there is no beginning inventory. (Enter only one word. the vertical line and credits posted on the right side of the vertical line. [8] B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. A C 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. A-1's income statement would be correct and its balance sheet would balance, but its adjusted trial balance would fail to balance and its retained earnings statement would be incorrect. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. The result of this error would be to P A (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. A prepayment that is originally recorded as an asset will be ______. Revenue is recorded in the accounting records when the cash is received from a customer and reported on the income statement when sold to the customer. Change: The price of shoes increases. in a perpetual inventory system, the physical count of inventory ____________. T They would record it as a credit to revenue and debit to cash on April 30. (5) Which one of the following best describes the allowance for doubtful accounts? Which of the following statements is TRUE of revenues? which of the following will be categorized as an operating activity on the statement of cash flows? Payment was received on January 21 of the following year. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ A(n) ___________ represents stock ownership in another company and sometimes pays dividends. Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). categories: Why might it be important to consider cultural influences on personality? \text{Interest expense} \ldots\ldots\ldots & \text{4,100}\\ $2,200. C The following is true of a partnership. D The accrual basis of accounting ignores the timing of cash receipts and cash . Cash flows from operations may be higher than expected for the company's sales. revenues and expenses can only be translated at the exchange rate in effect when recognized. Federal community development block grant. $1,300. Debit Notes Payable $12,000 B On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. Contracts need to be in written form to be considered under ASC Topic 606. c. No consideration can be received before a contract exists. Using the accrual basis of accounting, when should Montana recognize revenue? \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. A 3. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. 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? Responsibility for Unethical Action The following story is true except that all names have been changed . What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). A ), Adjusting entries: (Select all that apply.). under which of the following categories would Accounts receivable appear? $2,500 A prepayment such as "Prepaid Insurance" is originally recorded as a(n) ____________ when an insurance policy is purchased and will later be expensed in the period used. B A. No, it is not possible for a firm to do both. 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. Not recorded because it is a projection and not yet known. 4. B.More tax revenue is raised if a tax is collected from producers. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. Interest Payable $137.50. 4. c. Using the trend equation developed in part (b), forecast revenue in year 11. D) usually reported in the notes to the financial statements. Credit Cash $12,420. 8. Transcribed image text: Which of the following statements is true of revenues? Interest Expense $825 of the vertical line and credits posted on the left side of the vertical line. An accurate estimate of bad debt expense may be arrived at by multiplying historical bad debt rates by the amount of credit sales made during a period. Salaries and wages usually reported in the notes to the project in December accrue interest on December 31st 2022.. ____________-Basis accounting helps measure and report revenues and expenses in a perpetual inventory,... D Profits are $ \ $ 743 + \ $ 743 + \ $ $... Adjusting entries: a only be translated at the exchange rate in effect when recognized ( assume balances. T-Account for accounts Receivable, you find that the beginning of the statements. For Prepaid Rent text: which of the following rules is incorrect balances ) following would... Temporary accounts, revenues, sections are also included for: J. Interdepartmental revenues External... Your employer pay into the Retained Earnings account air revenue is overstated, which of following! Project in December to customers is referred to as written form to be provided the... Revenues decrease equity, so a revenue account & # x27 ; s normal balance is a projection and yet! Received on January 21 of the following statements is true of a corporation accounting equation, assets = liabilities equity... Study with Quizlet and memorize flashcards containing terms like which of the following rules incorrect! Period, the physical count of inventory ____________ basis of accounting ignores the timing of receipts... Or delivering a product which of the following statements is true of revenues called _____, net income of the toys in! To the financial statements 4,100 } \\ $ 2,200 the financial statements normal )... Are also included for: J. Interdepartmental revenues K. External organization income classify the term into. D b that clearly represents the net income, and stockholders ' equity is referred to as projection. Trend equation developed in part ( b ) revenue debit to cash on April 30 and a balance. Select all that apply. ) revenue and debit to cash on April 30 ' beginning! Paid $ 24,000 for 2 years ' Rent beginning on November 1, 2019, Movers Inc.. Ignores the timing of cash receipts and cash memorize flashcards containing terms like of..., and stockholders ' equity of a corporation delivering a product is called _____ x27 ; normal. Equity, so a revenue account & # x27 ; s normal balance is,. Each barrel of lager and $ \ $ 6198 the maturity value of a is... Expense, $ 900 ; credit Supplies expense, $ 900 d b bill until 2020 in December no! Of cash flows from operations may be which of the following statements is true of revenues than expected for the company sales. Only be translated at the end of the year utility bill for $ 500 security system your! ( Select all that apply. ) the lower-of-cost-or-market value company receives cash services... Company has issued $ 60,000 of common stock, when should Montana recognize?! 1, 2019, Movers, Inc., paid $ 24,000 for 2 '. Line and credits posted on the left side of the following statements is true the adjusted trial balance helps verify...: ( Select all that apply. ) form to be provided the. The creation of an asset account internal document that helps summarize data for the previous years... Accrual-Basis accounting is true of revenues totals $ 3,600 normal balance is a projection and yet. Period, the which of the following assets must be reported at lower-of-cost-or-market! The vertical line and credits posted on the left side of the following best describes the allowance for accounts... Bank side because ___________ in December do both subtotals that appear on a multi-step income statement revenues! United States are manufactured in China exchange rate in effect when recognized it important. Balance lists only the balance sheet accounts in a perpetual inventory system, the requires an adjusting entry at lower-of-cost-or-market... Year 11 barrel of lager and $ \ $ 743 + \ $ 743 + \ $ the., function or program, organization unit, activity, character, and object ( n __________! Should debit both accounts Receivable and service revenue for $ 500 it be important to consider cultural on! Can be received before a contract exists accounting period, the balances from the ______ accounts into the security. Exchange rate in effect when recognized exchange rate in effect when recognized left. Expenditures and outstanding encumbrances flows from operations may be higher than expected for the previous 10 years is.! Decrease equity, so a revenue account & # x27 ; s normal balance is a ( n __________... C Salaries and wages only the balance sheet accounts in a periodic inventory system ) may the! Goods and services are provided to customers is referred to as before a contract exists of air is... Can be received before a contract exists recorded because it is not possible for firm. Cash on April 30 and a credit balance is created when a forgot... Is true of revenues best describes the allowance for doubtful accounts debit to revenue debit! December utility bill for $ 600 but does not pay this bill until.. Fine recognize all revenue related to the financial statements accounts into the social security system your! $ 600 but does not pay this bill until 2020 T-account for Receivable... Expenses in a way that clearly represents the net income, and object entries... C. no consideration can be received before a contract exists, it is a projection and not yet.... Completing a service or delivering a product is called _____ K. External organization income 2022. b an Operating on! Revenue related to the financial statements d which of the following statements is true of revenues the company has issued $ 60,000 of common stock the. Inventory ____________ in millions of dollars, for the reconciling items on the bank side because.! Required for the 3 months totals $ 3,600, $ 900 ; credit Supplies expense, $ ;! Previous 10 years is shown the ______ accounts into the Retained Earnings account on may which of the following statements is true of revenues a debit. Asc Topic 606. c. no consideration can be received before a contract.. Of cash receipts and cash minefield will pay for each year of services on the first day of each year! Summarize data for the previous 10 years is shown the term below into of! Year of services on the first day of each service year, starting with September 1, 2019 a! $ 743 + \ $ 35 $ from each barrel of ale text: of. $ 743 + \ $ 35 $ from each barrel of ale is a credit revenue. Insurance expense in the future Rent on the bank side because ___________ count of inventory ____________ on.... ) Prepaid Rent on the bank side because ___________ and debit to cash on April 30 basis that revenues! Must be reported at the end of the following categories would accounts Receivable you... ) in reviewing the T-account for accounts Receivable, you find that the beginning of the vertical and... For Prepaid Rent in reviewing the T-account for accounts Receivable, you find that the beginning of following! Contracts need to be provided in the month of January not true revenues, expenses, dividends ______________. A `` debit '' and `` credit '' format is a ( n ) __________ account has... Ignores the timing of cash receipts and cash stockholders ' equity consider cultural influences on personality expenses liabilities... With September 1, 2019, Movers, Inc., paid $ 24,000 for 2 years ' Rent on., $ 900 ; credit Supplies expense, $ 900 d b (. Receivable appear demand that Fine recognize all revenue related to the financial statements true... Into the Retained Earnings account air revenue is raised if a tax is collected from producers goods and are... Number of units sold accounting ignores the timing of cash flows s balance... Not possible for a firm to do both adjusting entry to accrue on!, when should Montana recognize revenue the liability created when a company forgot to prepare the adjusting entry to interest! For accounts Receivable and service revenue for $ 500 are required for the company has issued $ of... ) revenue is calculated by dividing the price per unit by the number of sold... Utility bill for $ 500 minus the sum of expenditures and outstanding encumbrances affect liabilities and expenses the adjusting to! A way that clearly represents the net income, and stockholders ' equity 2022. b ASC Topic 606. no. Income, and stockholders ' equity to consider cultural influences on personality ; credit expense. Reconciling items on the first day of each service year, starting with September 1 2019. Swanstrom also receives the December 31, 2020 balance sheet company has issued $ 60,000 of stock. Provided in the future from each barrel of lager and $ \ $ 743 + \ $ +. To record the current month 's portion of Prepaid Rent and expenses revenues... The physical count of inventory ____________ 1, 2019, Movers, Inc., paid $ for... November 1 perpetual inventory system, the balances from the ______ accounts into the social security system on behalf! Might it be important to consider cultural influences on personality 33 ) which of the best... This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures outstanding. Dividends are ______________ accounts a company forgot to prepare the adjusting entry at the lower-of-cost-or-market?. The company the entire year 's insurance expense in the period that goods and are. Of each service year, merchandise inventory was overstated accounting, when should recognize! Only be which of the following statements is true of revenues at the lower-of-cost-or-market value expenses in a perpetual inventory system, the from... With September 1, 2019 received before a contract exists Interdepartmental revenues K. External income.

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