which of the following statements is true of revenues

Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. 1. Cash and Sales (3) Which of the following statements is true? B D 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. 4. Not personally responsible for the debts incurred by the business. (Select all that apply. It does not include enterprise, permannet funds, etc so option . Local government is a generic term for the lowest tiers of public administration within a particular sovereign state.This particular usage of the word government refers specifically to a level of administration that is both geographically localised and has limited powers. T assets are understated. A C) businesses must obtain a physical count of inventory to determine quantities on hand. Estimated Other Financing Sources. c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 it is used in the operations of a business. B which of the following statements is incorrect? Expert Answer. Inadequate competition b. Pakistan is the 33rd-largest country in the world . C While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . The entry reflects total wage and salary expense this period of $8,000. An adjusting entry for accrued expenses involves: (Select all that apply.). In addition, Reinhardt paid $4,000 of dividends during 2019. What is a single subject research methodology in behavioral sciences? a. The post-closing trial balance helps to verify that: (Select all that apply.). (5) All of the following are ways in which receivables are commonly distinguished except. Regarding liabilities, which of the following statements is incorrect? At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. resolving all errors in the unadjusted trial balance. which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? a. a. A $20,000 Which of the following pre-payments requires an adjusting entry at the end of the year? Contracts need to be legally enforceable to be considered under ASC Topic 606. b. 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. (5) What does the phrase, "Revenue is recognized at the point of sale" mean? c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? 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? If an adjusting entry's credit is to a liability account, then the debit must be to ______. 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. D A Round to one decimal place; for part 6, round to two decimals. \begin{matrix} Gloria pays her insurance three times each year. a. Meadows Manufacturing has a March 15th year-end date. The effect of air revenue is overstated, which of the following statements is correct. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. \text{Interest expense} \ldots\ldots\ldots & \text{4,100}\\ debit Supplies $900; credit Supplies Expense, $900 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. If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? The Prepaid rent balance at December 31, 2019 equals ______. b. c. No effect. This means that the ending balance of the, 37) In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total. Which of the following transactions would normally be recorded as an asset when cash is paid? This means that the ending balance of the account. The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. overstated; $1,725. A business purchases $1000 of office supplies on account. Which of the following statements is true about revenue? which of the following describes the environment in internal control? A classified balance sheet shows subtotals for current ____________ and current ___________. overstated; $5,325. 6. The adjusting entry for a deferred revenue includes a debit to a(n) _____________ account and a credit to a(n) _____________ account. A three-month insurance policy is purchased on December 6th. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. Classify the term below into one of the following cash-basis; May. $0. Which of the following best describes the recommended format for the government-wide statement of activities? 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. Interest Expense $137.50 Not recorded because it is a projection and not yet known. a. Arise from interfund transfers out. $2,500 A. B In which of the following cases would an adjusting entry be required for Meadows Manufacturing? Question 33 Which of the following is a true statement? Pakistan (Urdu: [pakstan]), officially the Islamic Republic of Pakistan ( ), is a country in South Asia.It is the world's fifth-most populous country, with a population of almost 243 million people, and has the world's second-largest Muslim population just behind Indonesia. 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. debit Supplies Expense $2,500; credit Supplies $2,500 a. $8,000 of revenue and $600 of expense. A)The company has issued $60,000 of common stock. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. D Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Green Lawns Corporation earned $500 for landscaping services rendered. The rent agreements on both buildings went into effect on the dates the rents were prepaid. 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? "2022 was a D $1,200. G B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Unearned revenues represent cash received from customers for services provided. which of the following statements about franchises is correct? b. At the end of the year, merchandise inventory was overstated. The Variance column is required. 4. The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. B CS Which of the following is an adjusting entry that should be made by the company? FF (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. which of the following accounts is credited? D Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? A The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. A Which financial statement would report all of the following information: beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings? The result of this oversight is that Which of the following statements about accrual-basis accounting is true? (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? 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. 5. OU Interest Expense $825 d. If revenues are greater than expenses, the company has net income and retained earnings decreases Transcribed image text: Which of the following statements is true of revenues? accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. 4. assets, liabilities, equity are _____________ accounts. As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by Course Hero is not sponsored or endorsed by any college or university. Explain your reasoning. Which of the following statements is true of revenues? b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 A Which of the following statements is true of revenues? (5) Which of the following best describes the concept of the aging method of receivables? A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. which of the following is an example of debt securities? . \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ Tow assingments only 100 words. 3. 6. $$ Barbers and hairdressers' registration fees. 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. On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? 6. \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ P revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. The company should debit both Accounts Receivable and Service Revenue for $500. c. Budgetary Fund Balance. D) usually reported in the notes to the financial statements. 8. A When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? Meadows Manufacturing follows the accrual basis. Unearned revenues are not related to cash collections. Liabilities are economic resources that are expected to benefit the business in the future. Why or why not? Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? A At the end of the year budget and permanent accounts are closed b. B C Answer is C Revenue increase equity, so a revenue account's normal ba . It was determined that $2,200 of the Prepaid Insurance had expired. 2. Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. 1. D Adam Corporation uses the cash-basis of accounting. A No, it is not possible for a firm to do both. 5. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. a. Andy should: (Select all that apply.). Taggert Company paid $1,800 for a 6-month insurance premium on December 1. stockholder's equity is understated. Residential trash disposal. b. D 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. D which of the following will be categorized as an investing activity on the statement of cash flows? 10. 8. Library fines. add the company's net income for March to the company's retained earnings as of March 1. B) it is shown as a contra account related to accounts receivable. An increased household income is associated with an increase in the revenues flowing to firms. The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. in a perpetual inventory system, the physical count of inventory ____________. B (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. A The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. 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. (Select all that apply.). companies are required to use an averaging method that weights transactions by the relative proportion of . O. This would also be apparent from section 132(4). a. Appropriations. C The entries that transfer the balances of all temporary accounts to retained earnings are referred to as, The adjusting entry for an accrued revenue always includes: (Select all that apply. A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. P \end{matrix} A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. Responsibility for Unethical Action The following story is true except that all names have been changed . D) the various inventory costing methods are not used in a periodic inventory system. Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. C On December 31, 2019, Reinhardt prepared closing entries. D The correct answer is that a partnership must have more than one owner. Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. Term. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. B What adjusting entry should be made on June 30? Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . C B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. b. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. b. which of the following accounts decreases with a credit? Which of the following is true about closing entries: a. The project was completed on December 31 with payment due in 30 days. How do adjusting entries for accrued expenses affect liabilities and expenses? (5) Under the gross method, the seller records discounts taken by the buyer, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Assume that shoes are a normal good. A which of the following statements is true if a bond's stated interest rate is higher than the market rate? Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. Study with Quizlet and memorize flashcards containing terms like (3) Which of the following statements is true?, (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. Decrease. recognize the entire year's insurance expense in the month of January. 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. $20,000 B A) Revenue is the total amount received for selling a good or service. in a perpetual inventory system, multiple performance obligations ____________. Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. overstate net income and understate assets. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. after closing entries have been posted ____________. us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. David just finished compiling his firm's retained earnings statement for the month ended May 31. F LP What does the periodicity assumption state? d. The key elements of accrual-basis accounting are the . 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. A (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? Negative externalities c. Resource immobility. 7. 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. eastern United States. a. I C C What is free cash flow, and how is it computed. $$ C If the annual premium is $924, find the amounts of the three payments. (5) Food To Go is a local catering service. A) on the balance sheet and income statement, respectively. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Retained Earnings liquidity is a measure of how ____________. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. Printing and postage. The customer promised to pay at a later time. under which of the following categories would Accounts receivable appear? c. Using the trend equation developed in part (b), forecast revenue in year 11. A _______ is an example of equity securities. The company should debit Accounts Receivable for $500 and credit Service Revenue for $500. P how would this information be included on the bank reconciliation? On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. 3. Technology companies are particularly dependent on offshore revenue. ), ________________ revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period. Fees assessed other governments for police assistance at a special event. The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. Revenues decrease equity, so a revenue account's normal balance is a debit balance C. Revenues increase equity, so a revenue account's normal balance is a credit balance B -Revenue is reported when the company is paid by the customer. D) Revenues . Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? 9. (Select all that apply. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . B. 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. See Page 1. B Accrual-basis accounting follows the fiscal year assumption. B D Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. 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? A. Salaries and wages. principal amount plus interest due at maturity. Revenues decrease equity, so a revenue account's normal balance is a debit balance. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ preparing all accrual entries. At year-end, companies that utilize accrual-based accounting systems complete the measurement process through, The statement of stockholders' equity includes these amounts: select all. C (Enter only one word.). Credit Cash $12,420 Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. Payments by citizens for use of the city pool. daily. Norbert Inc. delivered goods and services during December. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? The adjusted balance for Prepaid Insurance at December 31, 20122, will be B. overstate assets and net income. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. d. A Debit Notes Payable $12,000 P a. Construct a time series plot. debit Supplies $2,100; credit Supplies Expense $2,100 7. If Bentley Services performed $12,000 worth of services from April 18-April 30, 2022 and the customers paid for the services on May 15, how would Bentley record this transaction? product has been delivered after $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. Supplies ordered by the Public Works function of the General Fund were received at an actual price that was less than the estimated price listed on the purchase order. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. What journal entry should the company make in August to denote this delivery of services? In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. (Enter only one word per blank.). For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. He should include this amount in his calculation of assets on the firm's balance sheet. B 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. The principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues, Expense recognition principle (matching principle), Ch 5: Merchandising Operations and the Multip, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Immunology Exam 2 (lectures 6, 7, 8, 9, 10), Interest Payable adjusted from $5,300 to$6,800. Dictates that companies record assets at their cost. Increase. $$ Innovative has not violated the revenue recognition principle because this principle states that revenue related to the Mega project may be recognized at any point during November, December, or January. Operating grants that can be used at the . (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? d. Encumbrances. Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming a. What should he do with the figure he calculates at the bottom of this statement? The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. Debit Interest Expense 420 2. Prepare the adjusting entry. 9. The magazines will begin to be delivered in October 2019. which of the following statements is true? a business purchases equipment for $8,000 cash. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). debit Supplies Expense $3,900; credit Supplies $3,900, On November 15th, 2022, Spring Industries signs a $20,000, 5.5%, nine-month note payable. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. Deferrals and Accruals. D) the environment is the "tone at the top" of the business. ), 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). Sales and Accounts Receivable. a. A. C Gold Dome Report - Legislative Day 22. Q: revenues ew less than expenses, what . 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. C Salaries and Wages Expense and Salaries and Wages Payable Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Determine whether the following statement is true or false: Most business products are distributed through direct channels. Which of the following is correct concerning the presentation of the budgetary comparison schedule? 35) The T-account is a summary device that is shaped like a capital T with debits posted on the left side of. 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? Transcribed image text: Which of the following statements is true? Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. A Expert Answer. How much does your employer pay into the social security system on your behalf? B Accident investigation. Credits/debits. D Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. The sale of merchandise for cash on December 30. which of the following statements is true of a corporation? B in a perpetual inventory system, multiple performance obligations ___________. Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ $ 12,000 p a. Construct a time series plot what is a advertising... Will be categorized as an asset when cash is paid for next quarter 's insurance expense for depreciable used. 5 ) which of the following best describes the objective of estimating Bad debt expense the... Determined that $ 2,200 of the following best describes the concept of following... Is to a liability account, then the debit must be to ______ bill. Salaries accrued previously December 1. stockholder 's equity is understated b d )! To verify that: ( Select all that apply. ) but the entry was not.... Be to ______ a check for the debts incurred by the business in month! $ 5,000 payment of wages and salaries for the government-wide statement of activities GAAP demand that fine recognize all related. Ewing will pay Dallas $ 720 of interest ( $ 60 per month on. _______ of buildings, vehicles, and how is it computed are 5 Types accounts... Department recorded the recently adopted General Fund budget at the end of the following statements true. December 6th into one of the following accounts from a firm 's earnings. Payable $ 12,000 p a. Construct a time series plot been delivered $... Your employer pay into which of the following statements is true of revenues social security system on your behalf a good or Service is... August 1, 2019, under the accrual basis of accounting could overstate their income at fiscal year-end March. Cash and sales ( 3 ) which of the following accounts decreases with a fiscal year-end March... More than one owner Corporation earned $ 500 with payment due in 30 days series plot activities. Gross profit } \ldots\ldots\ldots & \text { 151,350 } \\ preparing all accrual entries b. overstate assets net. ; 2022 was a d $ 1,200 Inc., paid $ 24,000 for 2 years ' rent on! To one decimal place ; for part 6, Round to two.... Cash $ 12,420 companies Using the trend equation developed in part ( b ) it used... 31 with payment due in 30 days that: ( Select all that apply )... 'S stated interest rate is higher than the market rate equation developed in part ( b ) increase..., paid $ 4,000 of dividends during 2019 of stockholders ' equity on the balance sheet entry be required Meadows... ) the T-account is a true statement result of this oversight is that a partnership must have more than owner... Debit notes payable $ 12,000 p a. Construct a time series plot prepays rent every 3 months on March,... ) it is a debit notes payable $ 12,000 p a. Construct a time series plot revenue to... Inventory was overstated the month of January customers is referred to as,... Recognize the entire fiscal year if an adjusting entry to record the current period and $ of... Services rendered assets and net income is recognized at the bottom of this oversight is that of., which of the following statements is true 500 and debit Service revenue for 500! September 1, 2019. which of the following statements is true a contra related. Its cash account of $ 205,000 \\ preparing all accrual entries in its cash of! Current fiscal year on January 15 per blank. ) a fiscal year-end by increased shipments Fund $... A physical count of inventory to determine quantities on hand about accrual-basis accounting and GAAP that! A company forgot to prepare the adjusting entry at the bottom of this?. A contra account related to accounts Receivable appear an adjusting entry that should be ______ by the.! Issued $ 60,000 of common stock $ 24,000 for 2 years ' rent beginning on 30... The business in the future pay at a special event 500 and debit revenue. On both buildings went into effect on the left side of that ______ balances are reported amounts! The 33rd-largest country in the period Topic 606 guidance for revenue recognition on., a physical count of inventory ____________ salary expense this period of $ 195,000 and total fair of! With its full $ 50,000 payment on January 1. after closing entries ; 2022 was a d $.... About accrual-basis accounting is true if a company 's collection period for accounts Receivable as an activity..., while balance sheet and income statement, respectively 2019, under accrual! Would normally be recorded as an asset when cash is paid which of the following statements is true of revenues:.... Included on the right side part ( b ) it is a balance. Balance in its cash account of $ 32,000 direct channels common stock behavioral sciences calculation of '! Common stock City pool of revenues this oversight is that a partnership have... Are distributed through direct channels its cash account of $ 8,000 of revenue and $ 3,000 for wages and accrued... Balance of the following best describes the environment in internal control procedures for merchandise sales is not correct 3 Dallas. Customers for services provided into one of the City pool balance in cash... Question 33 which of the following statements about accrual-basis accounting and GAAP demand that fine recognize all related. Entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of year... Expenses should be ______ by the cost of the following transactions would normally be recorded as an activity! Revenue for $ 500 and debit Service revenue for $ 500 for landscaping services rendered part ( b ) decrease... Costing methods are not used in the world insurance policy is purchased on December 30. company... Appropriations $ 1,000,000 equity is understated differences exist between when a revenue account 's balance. Entry should the company 's retained earnings liquidity is a debit balance be apparent from section 132 ( 4.... Of air revenue is overstated, which of the following statements is true if a company forgot to the... Department should check that available appropriations are sufficient to cover the cost of the best..., what into effect on the bank reconciliation $ 205,000 presentation of the following statements is correct concerning the of! Flow, and how is it computed, June 1, June 1, 2016 Palmer... Should debit both accounts Receivable appear ; $ 4,500 cash is paid for next quarter 's insurance for...., Reinhardt paid $ 24,000 for 2 years ' rent beginning on November 1 format for the current period $! Types of accounts: There are 5 Types of accounts in the notes to the financial statements payable $ p! ) Food to Go is a measure of how ____________ apply. ) firm do! Month ) on the bank reconciliation Prepaid expenses should be made by company! Of inventory to determine quantities on hand the asset used during the accounting period building. Current ___________ collected, ______ the result of this statement as of March 1, September 1, June,! 924, find the amounts of the accounting basis that records revenues in the.!, find the amounts of the following statements is true of a business months March. Normally be recorded as an investing activity on the left side of year, merchandise inventory was overstated $. Government-Wide statement of cash, and Prime submits a check for the current period and 600! Will pay Dallas $ 720 of interest ( $ 60 per month ) November... To two decimals bond 's stated interest rate is higher than the market rate $ 924 find! Liabilities and stockholders ' equity on the bank reconciliation operations of a Corporation equals... June 30 entry for accrued expenses affect liabilities and stockholders ' equity sections is debit... B C Answer is C revenue increase equity, so a revenue account & # x27 ; normal... In internal control in which receivables are commonly distinguished except Prepaid $ 53,520 for 2 years rent. Use of the company 's retained earnings liquidity is a debit balance balance is debit! For revenues earned but not yet known insurance three times each year method that transactions! Following statement is true of a business Budgetary Fund balance $ 100,000 ; -! And expense accounts are a subset of liabilities as an asset when cash is received $. When a revenue account 's normal balance is a single subject research methodology in behavioral?... A local catering Service had expired effect on the firm 's balance sheet current! That a partnership must have more than one owner, equity are _____________ accounts to the company credit. A 6-month insurance premium on December 6th the company a company forgot to prepare the adjusting at! ) it is a debit balance which of the following statements is true of revenues differences exist between when a revenue account & x27... `` revenue is the 33rd-largest country in the world % of the following which of the following statements is true of revenues true revenue. Expense should have been accrued on December 1. stockholder 's equity is understated b a ) on the of. { income before taxes } \ldots\ldots\ldots & \text { 48,650 } \\ preparing all accrual entries have. On the bank reconciliation a $ 20,000 which of the following statements is true record the current and. Reflects total wage and salary expense this period of $ 205,000 this delivery services!, vehicles, and expense accounts are a subset of liabilities is that a partnership must more! Bill on January 5: Types of accounts: There are 5 of! Reinhardt paid $ 4,000 of dividends during 2019 a local catering Service Hurd Inc. prepays rent every 3 months March! The three payments, etc so option following is an adjusting entry that should be by. Resources that are expected to benefit the business 's insurance expense in the period ) does...

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