the statement of owner's equity should be prepared quizlet

Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a: a. balance sheet. Balances of the current asset and current liability accounts at the end and beginning of the year are listed b, Where are dividends declared and paid to stockholders reported or included on the financial statements? The journal entry required to close the Drawing account is _____. c.Cash 2. an increase in a asset and an increase in owner's equity 3. an increase in an asset and a decrease in another asset 4. a decrease in an asset and a decrease in a liability 5. a decrease in an asset and a decrease in owner's equity Transactions: a) Received cash for common stock b) Purchased supplies for cash (a) Notes payable (b) Advertising expense (c) Owner's capital (d) Cash (e) Service revenue, In which of the following financial statement(s) would you likely find the Retained Earnings account? invested in the business, which doesnt belong to debt holders. The easiest and simplest way of calculating stockholders' equity is by using the basic accounting equation. Which of the following account groups are nominal accounts? c.A/R, $750; A/P, $700 + Additional Sales of Capital stock =. Assets and liabilities are reported on: A. the statement of stockholders' equity. c. $8,782 Fees Earned14,700 A Statement of Financial Position (Balance Sheet) shows liabilities of $125,000 and assets of $240,000. c. d. Design services showed a decrease in revenue of 25%. The amount used in the buyer's accounting records to record this acquisition is Notes receivable due in 390 days appear on the a. balance sheet in the current assets section b. balance sheet in the noncurrent assets section c. balance sheet in the current liabilities section d. income statement as an expense 6. Identify the statement: 1- Balance sheet 2- Balance sheet and retained earnings statement 3- Income statement, On the statement of owners equity, the beginning capital is $48,000, the Net Income for the year is $20,000 and the drawing for the year is $78,000, what will the ending capital amount be? a. investments plus net income (loss). Describe the role of NGO's in the development process. accounting year. Classify it as a current asset, a current liability, an expense, a fixed asset, a long-term debt, a revenue, or a stockholders' equity account. In a certain store, there is a .03 probability that the scanned price in the bar code scanner will not revenue In what order should they be prepared? c. is a working paper that is required d.debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000, c.debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000, Managerial accountants would be responsible for providing information regarding b.business cycle management The financial statement that reports assets, liabilities, and stockholders' equity is the: (a) income statement. (b) What is the probability of at least 20 mismatches? b. are called real accounts In the statement of stockholders' equity, Retained Earnings had a beginning balance of $62,000. b. decrease to stockholders equity. c.revenues less expenses (order is not important) The statement of owner's equity demonstrates how the net worth (also called equity) of the business changed over the period of time (the month of June in this case). Explain the significance of the inventory turnover ratio in a JIT manufacturing environment. c.Wages Payable, debit; Wages Expense, credit b.expenses in the period when they are paid The statement of owners equity reports the changes in company equity. a.Is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements d. after the income statement and before the balance sheet. b.$99,849 a. d.preparing the financial statements. c.assets increase; owner's equity increases Which of the following accounts would likely be included in a deferral adjusting entry? Accounts Payable Cr., Beverage Supplies Dr., Food Supplies Dr. Retail Items Dr., Other Accounts Dr. b. Liability c. Revenue d. Owner's equity because you collected the cash in advance, Accumulated Depreciation and Service Fees Earned would be sorted to which respective columns in completing a work sheet? c.owner's equity, assets, liabilities, revenues, expenses d.are due to be paid in 5 to 10 years, Which of the following is not considered to be a liability? Total the Debit and Credit columns of the trial balance. 6 c.assets are purchased a.determines when revenue is credited to a revenue account Unearned Fees Cash c. present liabilities and tomorrow's liabilities The classified balance sheet will show which liability subsections? Some item. a.design a. a.sales plus selling expenses Dec. 31Owner's Capital925 4. (a) What is the expected number of mismatches? Which is the most likely component of aggregate Therefore, owner's equity can be calculated as follows: Owner's equity = Assets - Liabilities Where: Assets = $1,000,000 + $1,000,000 + $800,000 + $400,000 = $3.2 million Liabilities = $500,000 + $800,000 + $800,000 = $2.1 million Jake's Equity = $3.2 million - $2.1 million = $1.1 million c. Net income is $26,205. a.supply chain management Further, the statement of owner's equity is one of the shorter financial statements because there aren't many transactions that actually affect the equity accounts. b. $45,000. Explain why Visa charges the fee and why the merchant pays it. -Fees Earned In the United States, the statement of changes in equity is also called the, Equity, in the simplest terms, is the money shareholders have invested in the business. Unearned revenue appears _______. Income statement b. Balance sheet to the income statement. a. the beginning balance of owner's equity Statement of owner's equity is a financial statement that reflects the changes taking place in the shareholders equity accounts over a period of time. d. income statement as an operating expense, b. balance sheet in the property plant and equipment section. b.journal The accounts receivable (A/R) control account and the accounts payable (A/P) control account balances would be b. investments less withdrawals. What are the four main agents of socialization? Why are premiums for a group life insurance policy lower than for an individual life insurance policy? Western Electric has funded only $50,000\$ 50,000$50,000 of the non-pension postretirement benefits this year. Determine the net income (loss) for the period. d.assets, liabilities, revenues, expenses, owner's equity, b.assets, liabilities, owner's equity, revenues, expenses, THe term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is However, adjusting entries have not been made at the end of the period for the supplies expense of $2,713 and accrued salaries of $1,122. Assume that the capital account started with a beginning balance of $10,000. Net loss is $790. Normal entries; adjusting entry b. Fill in the empty spaces after Year 1 in the chart below: MgMNominalGrowthPMoneyRateofNominalPriceSupplyMoneySupplyLevel(index)InflationYear(billions)(percent)Year2=100(percent)1380.9595.224003420105.04441110.25\begin{array}{lllll} $21,600, debit b. balance sheet as a current liability. a. If you cannot answer a question, read the related section again. d.total of the Cash Dr. column of the cash receipts journal in a manual system, d.total of the Cash Dr. column of the cash receipts journal in a manual system, The revenue recognition principle When a balance sheet is prepared with the assets, listed first, followed down the page by the liabilities, and then the owner's equity, the balance sheet is called a(n): a.account form balance sheet. Net loss is $2,298. Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)? b. . a. income statement b. balance sheet c. both the income statement and the balance sheet d. neither the income statement nor the balance sheet, The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the: a. The Statement of Owner's Equity should be prepared investments plus net income (loss) less withdrawals When preparing the Statement of Owner's Equity the beginning balance should be followed by ____ to arrive at the ending balance of owner's equity. c. Capital stock. (b) retained earnings statement. Appreciation or depreciation of tangible assets. What is meant by the term B2C? a.Debit Taylor Thomas, Capital; Credit Accounts Receivable The statement that represents financial position at a point in time is the: a. balance sheet b. statement of cash flows c. income statement d. statement of owner's equity, Indicate whether the following items would appear on the income statement, balance sheet, or owner's equity statement. c. Design services showed an increase in revenue of 25%. Determine the current assets. b.tax reports to government agencies - Single-step income statement. On which financial statement will Income Summary be shown? analyze the adjustment entries Is the Fees Earned account classified as an asset, a liability, an owner's equity, a revenue, or an expense account? b.adjusting entry for depreciation prepare an unadjusted trial balance Balance Sheet b. 1. Companies use reverse entries to avoid error of omission, Use the adjusted trial balance for Stockton Company. Table of contents All rights reserved. prepare financial statements Statement of owner's equity to the balance sheet. Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance. Title of the statement. a. Close the income statement accounts with credit balances. 3 & 420 & & 105.0 & \\ Which of the following statements is not true about liabilities? Shareholder's Equity: The owners' interest in a corporation is called shareholder's equity. b.A corporation's resources are limited to its individual owners' resources. Sources Pirate Pete, Capital Oct. 1 58,000 3. b.debit to Cost of Merchandise Sold and a credit to Merchandise Inventory None of these choices are correct. a.deferral What would be the ending balance for Cash in the general ledger? When preparing the Statement of Owner's Equity the beginning balance should be followed by _____ to arrive at the ending balance of the owner's equity. a. The following amounts were taken from a company's balance sheet: 2. d.revenues less expenses (ordered in alphabetical order), a.revenues less expenses (ordered largest to smallest amounts) with miscellaneous expense listed last, If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n) Is the Accruals account found on the balance sheet or the income statement? Income statement B. At the end of the month, the total of the amount column of the revenue journal is posted as a a. debit to Accounts Receivable and a credit to Cash b. debit to Accounts Receivable and a credit to Fees Eamed c. debit to Cash and a credit to Fees Earned d. debit to Cash and a credit to Accounts Payable 15. a.Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance. Revenues925 Which of the following entries records the investment of cash by Taylor Thomas, owner of a proprietorship? d. Accounting data flow from the: a. Types of Equity. Net loss Oct. 2018 7,600 Owner investments 1,500 Wages payable 3,000 5. All real accounts are closed at the end of the period. the balance sheet and the statement of owner's equity. d.snow removal services that have been provided and paid on the same day, c.snow removal services that have been provided but have not been billed or paid, Smokey Company purchases a one-year insurance policy on July 1 for $3,600. B. decide how to record a business transaction. a.B2B e-commerce The Statement of Owner's Equity should be prepared after the income statement because this statement needs to list the net income or net loss of the Our experts can answer your tough homework and study questions. First the income statement is prepared, then the retained earnings statement is prepared, finally the balance sheet is prepared. either the adjusted trial balance or the income statement columns of the work sheet, In the accounting cycle, the last step is, Ordinarily begins on the first day of a month and ends on the last day of the following twelfth month. |Current assets |$ 14,000 |Net income| $ 21,000 |Current liabilities |8,000 |Stockholders' equity |39,000 |Average assets |80,000 |Total liabilities |21,000 |To, Indicate in which of the following financial statement(s) you would likely find contributed capital. answer choices net loss net profit retained earnings equity Question 5 20 seconds Q. How will this transaction affect net income? The natural business year is a a fiscal year that ends when business activities are at their lowest point b. calendar year that ends when business activities are at their lowest point c. fiscal year that ends when business activities are at their highest point d. calendar year that ends when business activities are at their highest point 10. a.fixed asset 5. 4. d.been earned and cash received, b.been earned and not recorded as revenue, Which of the following is the authoritative body in the United States that has the primary responsibility for developing accounting principles? Identify each account as either a balance sheet account or an income statement account. When Jamison receives cash from the employee for the amount of the overpayment, which of the following entries will Jamison make? financial convertibility. a. represent amounts accumulated during a specific period of time a. debit Prepaid Insurance; credit Owner's Capital How are asset accounts usually arranged in the balance sheet? Which of the following statements is false? Match each of the following to the financial statement on which they would be found. a.Account titles of liabilities often include the term "payable." $9,330 After posting the second closing entry to the income summary account, the balance will be equal to, the net income or net loss for the period. a. purchases journal b. cash receipts journal c. general journal d. cash payments journal _11. B. the balance sheet. D. the. a.tax reports to government agencies -Credit column for the Balance Sheet and Statement of Owner's Equity columns. c. balance sheet in the owner's equity section. a.statement of owner's equity d. current liability, The income statement is prepared from The net income reported on the income statement is $99,849. c. Office Equipment $75,800 c. $35,800 D. $48,000, Unearned revenue is always a(n): a. Supplies expense 1,500 Owner withdrawals 100 6. Get access to this video and our entire Q&A library, What Are Financial Statements? d. Land. State whether the normal balance is a debit or a credit. d. Statement of Stockholders' Equity c. Cash Flow Statement d. Income Statement, Indicate the financial statement on which each of the following items appears. Return on equity may also be calculated by . be carried over to the Credit column of the balance sheet on the work sheet. a.journalizing Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000, for the fiscal year ending on April 30? ordinarily begins on the first day of a month and ends on the last day of the following twelfth month, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Of the following, which step should be done first? The income statement columns in the worksheet show that debits are equal to $55,800 and credits are $62,705. What does this information mean to the accountant? 923.190.541. c.SEC None of these choices, b. be carried over to the debit column of the balance sheet on the work sheet, The first step of the accounting cycle is to _____. 1. c.decreases assets, increases liabilities Record the following closing entries on page 25 of the general journal. - Statement of stockholders' equity. b. It is also known as "Statement of Changes in Owner's Equity". Balance sheet, auditor's report and income statement. 7. c. If the company becomes illiquid in future years, what prospects, if any, do today's employees have of receiving the pension benefits that they have earned to date? Liability. d.debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100, a.debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800. c.The adjusted trial balance will show the net income (loss) as an additional account. The Cash balance on the adjusted trial balance will be carried over to accounts payable |Current assets |$ 7,000| Net income| $ 15,000 |Current liabilities |4,000| Stockholders' equity |21,000 |Average assets |44,000 |Total liabilities| 9,000 |Total, Using the following balance sheet and income statement data, what is the earnings per share? d. Revenue. Determine the net income (loss) for the period. None of these choices are correct. The adjusting entry on December 31 is a.posting to the general ledger Prepare an income statement, statement of changes in stockholders' equity, year end balance sheet, and statement of cash flows for each year. d.The adjusted trial balance will be used to record the adjustments for the period. All of the following accounts will appear on the post-closing trial balance except _____. The companies settled on a purchase price of $211,331. A checking account is a highly liquid transaction account held at a financial institution that allows deposits and withdrawals. $14,400, credit. Income Statement c. Statement of Stockholders' Equity d. Statement of Cash Flows e. Both A and C f. Both A and B g. All of the listed financial statem, Using the following information from a balance sheet and an income statement, compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equit, Using the following information from a balance sheet and an income statement, compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity. b.been incurred but not paid and not recorded In which journal would adjusting entries be found? d.Liabilities do not include wages owed to employees of the company. Two important financial statements readily used by investors include the cash flow statement and statement of shareholders' equity. a. Cash was also credited for $3,000, $500, and $100. Notice the amount of net income (or net loss) is brought from the income statement. We reviewed their content and use your feedback to keep the quality high. a.FASB _7. Which of the accounts below would be closed by posting a debit to the account? First, create the statement heading. d. both the Adjusted Trial Balance and the Income Statement columns of the end-of-period spreadsheet, c. either the adjusted trial balance or the income statement columns of the end of period spreadsheet, Debts listed as current liabilities are those that Amir Designs purchased a one-year liability insurance policy on March 1st of this year for $5,400 and recorded it as a prepaid expense. \end{array} C. communicate with other computers electronically. 3. the Credit column of the balance sheet on the work sheet. c.perpetual Use the adjusted trial balance for Stockton Company. c.summarizing Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Which financial statement is a snap-shot in time of a business' financial status? Dec. 31Fees Earned750 Income Statement c. Balance Sheet d. It will not appear on any financial statement. Direct labor costs are expected to increase by 15 percent. d.The normal balance for revenues and expenses is a credit. At year end, the adjusting entry on the work sheet would, On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. Is used to summarize account balances and adjustments for the financial statements. Identify whether each is an input or output to the cooking process. An optional end-of-period spreadsheet is prepared. Stock dividends distributable should be classified: A. on the income statement as an expense B. on the balance sheet as an asset C. on the balance sheet as a liability D. on the balance sheet as an item of stockholders' equity E. None of the above. c. statement of owners equity Unearned fees appear on the balance sheet as a current liability What conclusions can be drawn regarding Brayden's ability to meet its financial obligations? This would affect the income statement by having What do you call the result of operation at a given period of time if the expenses is larger than the total income? What is the best explanation for this journal entry? b. Year1234MNominalMoneySupply(billions)380.95400420441gMGrowthRateofNominalMoneySupply(percent)PPriceLevel(index)Year2=10095.2105.0110.25Inflation(percent). expenses Which of the following columns should be included in the new purchases journal? Unearned Fees Statement of cash flows B. Fixed overhead was$900,000. accounts receivable 1. a. income statement b. balance sheet c. both the income statement and the balance sheet d. neither the income statement nor the balance sheet, Which of the following financial statements shows the amounts distributed to the owner? c. current assets and other equity Current Year Prior Year Consultation services $1,000,000 $ 800,000 Design services 1,800,000 1,500,000 Using a horizontal analysis, which is correct? b.$45,000 c.Land; Accounts Payable; Drawing c. either the Adjusted Trial Balance or the Income Statement columns of the end-of-period spreadsheet Learn about the types and importance of financial statements. b.ledgerizing On which financial statement will Income Summary be shown? Which of the following is not true about closing entries? calendar year. Which of the following reports a company's financial position? c.balance sheet In the balance sheet, a debit balance in Unrealized Gain or Loss Equity is reported as a(n)? c.partnership $11,900 c. $17,400 d. $8,700 9. What are the steps in preparing financial statements? Net income for the period is. a.credit balance of $15,000 The cash receipts journal will be used for a. only cash received from customers on account b. all cash received for any purpose c. cash received from customers on account and cash sales d. only cash received from cash sales 4. a.Received cash for services performed. The statement of owner's equity should be prepared after the income statement and before the balance sheet The income statement will present revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last The classified balance sheet will show which asset subsections? a.the word "Total" written at the bottom of each pair of columns a. an expense on the income statement b. a revenue on the income statement c. an asset on the balance sheet d. owner's equity on the balance sheet, Using the following balance sheet and income statement data, what is the total amount of working capital? C. as a contra account in the current asset section of the balance sheet. c.debit Prepaid Insurance, $1,800; credit Cash, $1,800 (c) total liabilities on the balance sheet. c. Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr. Other Accounts Dr., Cash Cr. assets, liabilities, and owner's equity. after the income statement and the statement of owner's equity. demand to start a recession? Rent Revenue 175 The post-closing trial balance differs from the adjusted trial balance in that it does not. $60,200 b. Which of the following accounts ordinarily appears in the post-closing trial balance? Accounting questions and answers. d.Liabilities do not include wages owed to employees of the company. d.Records economic data but does not communicate the data to users according to any specific rules, b.Is an information system that provides reports to users regarding economic activities and condition of a business, The income statement will present a.Assets are decreased by credits and have a normal debit balance. c.revenue An unadjusted trial balance is prepared. c. balance sheet in the long-term liabilities section Machinery. An unadjusted trial balance is prepared. The second line shows the title of the report. Indicate in which of the following financial statement(s) you would likely find non-cash assets. Income statement b. Transactions are analyzed and recorded in the journal. An adjusted trial balance is prepared. c. How much would the Components Divisions income from operations increase? Owner withdrawals would appear on the _____. a. b. Net income, as corrected, is The balance sheet reflects an instant or a POINT in time. a.$18,000 b.long-term liability 4 & 441 & & 110.25 & d.assets are used in the process of earning revenue, d.assets are used in the process of earning revenue, The inventory system employing accounting records that continuously disclose the amount of inventory is called As you know by now, the income statement breaks down all of your company's revenues and expenses. b.income statement c.Received cash for services to be performed in the future. a.expenses when their future economic value expires or is used up a. a. are due to be paid in 5 to 10 years State whether the normal balance is a debit or a credit. What item appears on both the balance sheet and the statement of owner's equity? d.increases assets, decreases owner's equity, a.increases assets, increases owner's equity, If the physical count of inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage? d. $21,930, Accumulated Depreciation appears on the The last payday of the year was Friday, June 26. c. loss in the income statement. Which of the following statements indicates that a company earned a net income for the period? Createyouraccount. The Balance Sheet should be prepared: a. before the income statement and the statement of owner's equity. d.Interest Revenue, Which side of the account increases the cash account? Interest Revenue _ _ _2. d.prior period statement. The balance in the account "Accumulated Depreciation, Equipment" will be reported on the: a. d.before the income statement and balance sheet, c.after the income statement and balance sheet, The process of recording a transaction in the journal is called The final output of the operating budget is __________. Contributed capital. Statement of Owner's Equity b. On the companys balance sheet, shareholders equity is represented under the heading Shareholders Equity or Stockholders Equity. The section usually comprises three components: The general format for the statement of owners equity, with the most basic line items, usually looks like the one shown below. Statement of Retained Earnings. C) budgeted income statement. Balance sheet b. There are two closing entries. The Balance Sheet should be prepared: a. before the income statement and the statement of owner's equity. D. The sum of the materials, labor and overhead costs paid during the period. Statement of owner's equity C. Balance sheet D. Depreciation report, Determine the financial statement on which accumulated depreciation would appear. Dec. 31Owner's Capital925 d. eliminates the need to rewrite the financial statements, b. is used to summarize account balances and adjustment for the financial statements, When a corporation adopts a fiscal year that ends when business activities have reached the lowest point in its annual operating cycle, such a fiscal year is called the d.Prepaid Insurance, Every controlling account must have its own Income statement B. The journal entry to close revenues would be: debit C. Finley, Capital $3,000, credit C. Finley, Drawing $3,000. $17,673 A list of assets, liabilities, and owners' equity as of a specific date is a(n): a. income statement. Describe the dividend discount model (DDM), P/E ratio, and economic value added (EVA) approaches used to value common stock. d.cash purchase of equipment, The total on the "Cash Receipts" report generated by QuickBooks software at January 31 would be equal to the Is the Supplies account classified as an asset, a liability, an owner's equity, a revenue, or an expense account? 2 & 400 & & & \\ a. c.debit Prepaid Insurance, $1,800; credit Cash, $1,800 The work sheet at the end of August has $6,700 in the Balance Sheet credit column for Accumulated Depreciation. a.not been recorded as revenue but cash has been received Define (a) parameter, (b) estimator, (c) sampling error, and (d) sampling distribution. Wrong. a.cash received on customer's account b.implementation (wrong)
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