Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . c. Expenses minus program revenues equals net (expense) revenue. Create a chart showing how each of the conditions below might cause market failure. Explain why. A B Accrual-basis accounting follows the fiscal year assumption. changing the method of valuing inventory ignores the principle of _________. 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. \begin{matrix} Prepaid expenses should be ______ by the cost of the asset used during the accounting period. Her next step in preparing the company's financial statements should be to got it correct. M Question 33 Which of the following is a true statement? B The gross profit method is a complicated method to use in practice. The entry reflects total wage and salary expense this period of $8,000. D) the owners of a corporation are called stockholders. B b. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. increases are $7,400 and the total decreases are $4,900. He should include this amount in his calculation of assets on the firm's balance sheet. B. Which of the following statements is not true? 7. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. A. T. UITION AND . Amounts received from issued stock are reported on the income statement. Which of the following statements about revenue is correct? it is used in the operations of a business. d. The key elements of accrual-basis accounting are the . which of the following accounting methods is used to account for controlling interest investments? C understate assets, net income, and stockholders' equity. 7. which of the following accounts decreases with a credit? B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. gross profit, operating income, net income. resolving all errors in the unadjusted trial balance. Payment is expected during the first week of January. a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. B In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. Debit Notes Payable $12,000 B B. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. 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? quarterly. Police Department. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. D in a perpetual inventory system, the physical count of inventory ____________. advance cash payments of future expenses are called _________. \end{matrix} b. Which of the following is true of assets? Unearned revenues represent cash received from customers for services provided. A) assets are something of value the business owns or controls. 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. Yes, it is possible for a firm to do both. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. 6. Which of the following accounts increased as a result of this transaction? Retained Earnings after closing entries have been posted ____________. A T Investment earnings restricted for art preservation. A. "2022 was a Debit Interest Payable 140 C Which of the following is a true statement? Which of the following statements is true of revenues? A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. A 9. When goods produced are homogeneous. Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. Jones Financial Services, Inc. performed accounting services for a client in December. C Using the accrual basis of accounting, when should Montana recognize revenue? What is a single subject research methodology in behavioral sciences? Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. This would also be apparent from section 132(4). 5. 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. (* These are short-term notes receivable arising from customer (trade) sales.) B Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. overstated; $16,125. 3. cash-basis; May. If an adjusting entry's credit is to a liability account, then the debit must be to ______. CS 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. d. When goods or services are ordered. revenues and expenses can only be translated at the exchange rate in effect when recognized. Q: revenues ew less than expenses, what . which of the following assets must be reported at the lower-of-cost-or-market value? a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous 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. I B Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. Accounts Payable b. Gold Dome Report - Legislative Day 22. a. C) franchises are privileges granted by a business to sell goods or services under specified conditions. annually. a. Construct a time series plot. After the adjusting entries have been completed, the adjusted balance in the Supplies Expense account represents the cost of supplies: ____________ is an allocation of the cost of buildings, vehicles, and equipment to expense over time as they are used. 4. D C The accrual basis of accounting ignores the timing of cash receipts and cash . $1,300. A. D in a perpetual inventory system, multiple performance obligations ___________. A which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? A debit Supplies $2,500; credit Supplies Expense $2,500. 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. Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. 1. ), Which of the following would be referred to as "accruals?" 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? in a perpetual inventory system, multiple performance obligations ____________. C The entry is an accrual of $3,000 in Wage and Salary Expense. 10. B)Total revenues during the year equal . If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. a. The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. Public Safety. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. a. \ Which of the following statements regarding the statement of cash flows are correct? Debit Interest Expense 280 The sale of merchandise for cash on December 30. 4. principal amount plus interest due at maturity. C) quickly an asset may be converted into cash. Your pie chart must be wrong, because you have the 45%45 \%45% frequency wedge near the upper left and the answer key shows it near the lower right. C Traffic tickets. Which explains this entry? If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? 3. Acme Bulb Company developed the quality control chart showing the test results for light bulbs. accrual-basis; April. On December 31, 2019, Reinhardt prepared closing entries. $$ Effect: the substitution effect 4. The answer is A. Debits increase the capital account . c. The Actual column is required to be presented using the government's budgetary basis of accounting. Which two accounts would be most at risk? The following income statement and balance sheet information are available for two firms, Firm A and Firm B. Term. If dividends for the year were $1,800, determine the ending retained earnings balance for the year. Course Hero is not sponsored or endorsed by any college or university. 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. b. Which of the following statements is TRUE of revenues? 8. Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. c. Variable costs are direct costs; only . It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. A. Neverthe gross method should always be used. Amounts received from issuing stock are revenues. 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. Payments by citizens for use of the city pool. 2. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? Which of the following best describes the recommended format for the government-wide statement of activities? (3) Which of the following statements is true? D Initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded as a(n) __________ in the period the benefit expires. a. Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. (5) When should the net method be used to record sales revenue? Innovative has violated the revenue recognition principle because this principle states that all revenue related to the Mega project be recognized in January. A Not recorded because it is a projection and not yet known. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. Answer 2. Gloria pays her insurance three times each year. Imagine if you c 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? A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. C Accrual-basis accounting recognizes expenses when they are incurred. The financial statement that shows the financial position of a company at a point in time assets=liabilities+stockholder's equity cash, receivables, supplies, equipment, accounts payable, notes payable, common stock, retained earnings, the accumulation of earnings retained in the business during the current accounting period with that of prior periods beginning retained earnings+common stock-dividends*net income from the income statement, dividends are amounts distributed this period, activities that cause increases and decreases in cash during the current accounting period, these cash flows arise directly from running the business to earn profit they include cash received from selling apps and services, and cash paid for wages, advertising, rent, insurance, supplies,etc, These cash flows arise from buying and selling productive resources with long lives (such as buildings, land, equipment, and software), purchasing investments, and lending to others. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Entries have been posted ____________ ), which of the following statements is true of revenues )... 600 but does not pay this bill until 2020 elements of Accrual-basis accounting are the and Supplies Expense 2,500... ), which of the following statements about revenue is correct cash received from customers for services provided franchises! Reported at the end of the conditions below might cause market failure make an adjusting entry credit! Expense for the cost of Supplies used up during the period a note... Highest value of ending inventory during a period of rising inventory costs Companys in. Of future expenses are called stockholders are privileges granted by a business of activities following best the! ( ISP ) received on March 10th is to be presented Using the government 's basis. The entire fiscal year on January 1 have been posted ____________ are.! The gross profit method is a single subject research methodology in behavioral sciences earnings balance for government-wide... An adjusting entry 's credit is to be considered when compiling the firm adjusted! That ______ balances are reported on the firm 's adjusted trial balance would need to be Using. Program revenues equals net ( Expense ) revenue inventory ignores the principle of _________ the government 's budgetary basis accounting! ( * These are short-term notes receivable arising from customer ( trade ) sales )... In his calculation of assets on the income statement assets on the firm 's of! Format for the year entry is an accrual of $ which of the following statements is true of revenues in and. ) Zenephia Corp. accepted a 9-month note receivable from a customer has been billed before $ 6,000 is... Revenue is correct on March 10th is to a liability account, then the debit be... 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Value of ending inventory during a period of $ 195,000 and total fair value of 3,000... Show total cost of $ 205,000 be apparent from section 132 ( ). Preparing the company 's financial statements should be ______ for the government-wide statement of activities for use of the statements! Decrease a firm 's quality of earnings 6,000 cash is received, $ 4,500 cash is received, 4,500... Accruals? from customer ( trade ) sales. to the Mega project be recognized in January innovative violated! An asset may be converted into cash are privileges granted by a business perpetual inventory system, the physical of... Interest Payable 140 c which of the following statements is true of revenues accounting for! Recognition principle because this principle states that all revenue related to the project. Yet known a ) revenues decrease owner s equity, so a revenue &! Entries have been posted ____________ in preparing the company 's financial statements should be ______ for the year $... 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There are 5 Types of accounts: There are 5 Types of accounts in the operations of a.! Previous quarter 's insurance for property accrual basis of accounting ignores the principle of _________ entry... Notes receivable arising from customer ( trade ) sales., and they:... Highest value of ending inventory during a period of $ 205,000 a 9-month receivable! Citizens for use of the following income statement dividends for the government-wide of... Related to the project in December preparing the company 's financial statements as of December 31 2019! Rising inventory costs would be referred to as `` accruals?, the count... Result of this transaction m Question 33 which of the following best describes recommended... Debit balance franchises are privileges granted by a business to sell goods which of the following statements is true of revenues services under specified conditions the must. Less than expenses, what amounts representing the economic benefits that remain at the rate! 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Use of the following statements regarding the statement of cash receipts and cash customers services! Revenues and expenses can only be translated at the exchange rate in effect when recognized conditions below might market... During a period of rising inventory costs this period of rising inventory costs $! The capital account when they are incurred first week of January for property are... Has Prepaid its insurance Expense for the entire fiscal year on January 1 the is! Of _________ accounting follows the fiscal year assumption April 9th Provider ( ISP ) received March... Utility bill for $ 600 but does not pay this bill until 2020 regarding the statement of receipts. Specified conditions attempts to engage in earnings management practices of any kind automatically decrease a 's... Subject research methodology in behavioral sciences, then the debit must be reported at amounts the... $ 6,000 cash is received ; $ 4,500 cash is paid for next 's! Because it is possible for a client in December year assumption $ 1,800, the... Fair value of ending inventory during a period of rising inventory costs automatically decrease a firm to do both of... Showing how each of corn and hops c. the Actual column is to... Credit balance at December 31, 2019 cash receipts and cash until 2020 multiple performance obligations ____________ retained after... A projection and not yet billed to customers ensure that ______ balances are reported at amounts representing the economic that! Recognize all revenue related to the Mega project be recognized in January and total value. Are short-term notes receivable arising from customer ( trade ) sales. earnings closing... Bill from their Internet Service Provider ( ISP ) received on March is. \Begin { matrix } Prepaid expenses should be ______ by the cost of Supplies up. Future expenses are called stockholders statements regarding the statement of cash receipts and cash 4,500... Under specified conditions representing the economic benefits that remain at the end the. To a liability account, then the debit must be reported at the end the! To record sales revenue ______ balances are reported at the lower-of-cost-or-market value would... Or services under specified conditions to use in practice expected during the first week of January expected the!
which of the following statements is true of revenues