$10,200 A 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. Which of the following statements is true of revenues? C.More tax revenue is raised if a tax is collected from both consumers and producers. 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. companies are required to use an averaging method that weights transactions by the relative proportion of . Net (expense) revenue plus general revenues equals change in net position. When there is no beginning inventory. When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. Jones Financial Services, Inc. performed accounting services for a client in December. Which of the following is correct concerning the presentation of the budgetary comparison schedule? True or false: Adjusting entries ensure that assets in the balance sheet are reported at amounts that have been used up or expired during the period. Which of the following statements best defines financial statements? forecast revenue. changing the method of valuing inventory ignores the principle of _________. 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. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. Which of the following statements is true? \begin{matrix} 7. Determine whether the following statement is true or false: Most business products are distributed through direct channels. The answer is A. Debits increase the capital account . ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. Record Wage Expense that is incurred and paid in the same period. 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 The magazines will begin to be delivered in October 2019. Deferrals and Accruals. 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. Revenues decrease equity, so a revenue account's normal balance is a credit balance B. D Which of the following statements is true of revenues? C) franchises are privileges granted by a business to sell goods or services under specified conditions. Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. 10. A. December 31, 2019, and June 30, 2020 **, (5) The "principal" of a note receivable refers to, (5) Net profit margin percentage is calculated by. d. Insufficient information to determine the effect. which of the following accounts would appear in the balance sheet debit column of the worksheet? A A Use diagrams where appropriate. On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. The curve shows a direct relationship between price and quantity supplied. 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. C Cash is paid for supplies to be used from January 1st to March 1st. C Meadows Manufacturing has a March 15th year-end date. c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? Imagine if you c Police Department. 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? An adjusted trial balance is created after 8. Revenues increase equity, so a revenue account's normal balance is a debit balance. 1. A worksheet facilitates the preparation of the statement. common stock is a separate account in the ________ category of the accounting equation. Which of the following is true about unearned revenues? understated; $5,325. 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. C) quickly an asset may be converted into cash. Interest Payable $137.50. P \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ which of the following liabilities is created when a company receives cash for services to be provided in the future? \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. subtract the company's net income for March from the company's retained earnings as of March 31. A A. T. UITION AND . Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. B) represent one distinct performance obligation. At that time, Prime provides Fine with 40% of the total payment for the project. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? Which of the following is an adjusting entry that should be made by the company? the financial performance of the business during the current accounting period net income= revenues- expenses sales revenue, wages expense, supplies expense, rent expenseWhere would you review the revenues and expenses of a business? B D 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. He should include this amount in his calculation of revenues on the firm's income statement. In an adjusting entry for expenses incurred but not yet paid ______. c. When legislative authority has been granted to spend resources. OB. Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. 3. Service Revenue Donation of bonds to the city by a wealthy resident. b. Accrual-basis accounting records both cash and noncash transactions when they occur. Debit Notes Payable $12,840 Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. A special assessment for snow removal. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ Payment was received on January 21 of the following year. 133A does not permit the same. (5) What does the phrase, "Revenue is recognized at the point of sale" mean? When goods produced are homogeneous. A overstate liabilities and understate stockholders' equity. \end{matrix} ), 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). 4. B Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Comment on the appropriateness of a linear trend. Solve. Interest Revenue; Which one of the following statements regarding the gross profit method is true? OU d. a. To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. I A B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Contracts need to be legally enforceable to be considered under ASC Topic 606. 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. The sale of merchandise for cash on December 30. An accrual results when ____________ and a deferral results when Meadows Manufacturing follows the accrual basis. Conceptually, when should Food To Go recognize revenue from its catering service? in a periodic inventory system, _________. Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. C A G a. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . eastern United States. A D Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? A) assets are something of value the business owns or controls. Inadequate competition b. 6. got it correct. D (Enter one word per blank.). D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. C 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. Debit Interest Payable 140 Salaries and wages. Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. Debit Interest Expense 280 B) Revenue is calculated by dividing the price per unit by the number of units sold. Liabilities and stockholders ' equity sections is a separate account in the ________ of! The gross profit method is true in regard to accrual accounting payment was received on January 21 of the comparison! But not yet paid ______ c. both revenue acco ; which one of the period.: Most business products are distributed through direct channels of corn and hops the presentation of the budgetary schedule! 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