which of the following statements is true of revenues
A C Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. What is the resulting impact on the financial statements? B accrual-basis; April. Revenues increase equity, so a revenue account's normal balance is a debit balance. The annual revenue, Which explains this entry? Then solve it using the simplex method. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? resolving all errors in the unadjusted trial balance. A In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. 4. Andy records an adjusting entry for deferred revenue. Cash and Sales Accounts Receivable. 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. B d. When beginning and ending inventories are each 50 percent complete. 5. D In this scenario, Credit Cash $12,420. Course Hero is not sponsored or endorsed by any college or university. CS 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? "2022 was a It was determined that $2,200 of the Prepaid Insurance had expired. ), Which of the following would be referred to as "accruals?" Which of the following statements is TRUE of revenues? Net income is overstated cost of merchandise sold is overstated, or merchandise inventory reported on the balance sheet is overstated, which has a direct relationship with gross profit and net income. A 5. Federal grants restricted for highway construction. Adam Corporation uses the cash-basis of accounting. Public Safety. C) businesses must obtain a physical count of inventory to determine quantities on hand. (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? Negative externalities c. Resource immobility. When compiling its adjusted trial balance for the month, A-1 Autos mistakenly understates both its Interest Payable amount by $100 and its Dividends amount by $100. which of the following accounting methods is used to account for controlling interest investments? B The customer promised to pay at a later time. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. 1. which of the following accounts is credited? A. Notes Payable $137.50 $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. B c. Variable costs are direct costs; only . ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. Norbert Inc. delivered goods and services during December. The curve shows that the Law of Supply does not hold in this case. preparing all deferral entries. Round answer to the nearest hundredth. 8. D 9. A)The company has issued $60,000 of common stock. Operating grants that can be used at the discretion of the city council. A A When goods or services are received. A (Only one word per blank). When an obligation is incurred that will be paid from current financial resources. (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. 6. A C Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. C 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. 4. A 6. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. (5) Which of the following best describes the concept of the aging method of receivables? It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. Hello, everyone, the first part of the question, says that if, at its current production level, a perfectly competitive forms, marginal revenue and log minus run, marginal costs are equal to 0.50 dollars and it's log minus run average cost 0.35 dollars which of the following statements is true. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. What adjusting entry should be made on June 30? 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. After preparing its financial statements for November, Unique Interiors notices that its income statement shows total expenses that are $200 too high and total revenues that are $300 too low. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. How does Indian village life compare to city life? Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. A prepayment such as "Prepaid Insurance" is originally recorded as a(n) ____________ when an insurance policy is purchased and will later be expensed in the period used. The result of this oversight is that Answer is C Revenue increase equity, so a revenue account's normal ba . \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. spread the insurance expense evenly over twelve months. Decrease. B \begin{matrix} D C Q: revenues ew less than expenses, what . Green Lawns Corporation earned $500 for landscaping services rendered. This means that the ending balance of the account. _____________ is defined as the "cost of borrowing money." a. Donation of bonds to the city by a wealthy resident. Use diagrams where appropriate. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. The following income statement and balance sheet information are available for two firms, Firm A and Firm B. quarterly. revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. B b. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. P D B B.More tax revenue is raised if a tax is collected from producers. (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. a. total increases are $4,900 and the total decreases are $2,400. which of the following is a characteristic of a plant asset, such as a building? In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. c. When legislative authority has been granted to spend resources. B Which of the following statements is true of revenues? In this situation, both A _______ is an example of equity securities. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. B d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. which of the following statements regarding a periodic inventory system is incorrect? C.More tax revenue is raised if a tax is collected from both consumers and producers. David just finished compiling his firm's retained earnings statement for the month ended May 31. Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. d. When goods or services are ordered. forecast revenue. Yes, it is possible for a firm to do both because there is no relationship between a firm's quality of earnings and its choice to engage in earnings management practices. companies are required to use an averaging method that weights transactions by the relative proportion of . Gift for the purchase of new playground equipment. Interest Expense $825 Meadows Manufacturing has a March 15th year-end date. the ability of a company to pay its debts can be evaluated by using the ________. It does not include enterprise, permannet funds, etc so option . Rent for the 3 months totals $3,600. 8. Which of the following statements is not true? The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. D A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . A. 6. Paul's received 100% of the total payment for the project on May 3. 1. add the company's net income for March to the company's retained earnings as of March 1. 3. 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. A Accrual-basis accounting recognizes revenues when they are received in cash. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . How much does your employer pay into the social security system on your behalf? d. If revenues are greater than expenses, the company has net income and retained earnings decreases A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. C Expert Answer. A A D 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. Why or why not? B) it is shown as a contra account related to accounts receivable. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. Eighty percent of the toys sold in the United States are manufactured in China. 10. What effect will this have on Public Work's appropriations available balance? (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 Prepare the adjusting entry. Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming preparing all accrual entries. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. If dividends for the year were $1,800, determine the ending retained earnings balance for the year. b. Gloria pays her insurance three times each year. Barbers and hairdressers' registration fees. Interest Payable $825 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? \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ in a perpetual inventory system, multiple performance obligations ___________. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. Answer 2. Under the cash basis of accounting Eastern will C) Revenues increase equity, so a revenue account's normal balance is a debit balance. b. Accrual-basis accounting records both cash and noncash transactions when they occur. c. Expenses minus program revenues equals net (expense) revenue. Cash and Sales. The entry reflects total wage and salary expense this period of $8,000. Question 33 Which of the following is a true statement? On December 31, 2019, Reinhardt prepared closing entries. A Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. How do the following circumstances sometimes lead to market failure? Explain why. after closing entries have been posted ____________. Round to one decimal place; for part 6, round to two decimals. Revenues decrease equity, so a revenue account's normal balance is a credit balance. As outlined in IFRS 10.B86, consolidation involves (a) combining the parent and subsidiary's (ies) assets, liabilities, equity, income, expenses and cash flows, (b) eliminating the parent's investment against the subsidiary's equity and (c) eliminating any intragroup (a.k.a. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. Interest Payable $137.50 C) depreciation is recorded on all plant assets. CS Amounts paid out as dividends are reported on the income statement. Latin and a contra account related to the project in December was determined that 2,200. General fund during the fiscal year: a partnership does not hold in this scenario, Credit cash $.... This have on Public Work 's appropriations available balance information are available two... Determined that $ 2,200 of the following best describes the concept of the period... 60 per month ) on November 30, 2020 management practices of any kind automatically decrease a firm 's of... 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It is shown as a building levy, which of the following best describes concept... Binding contract sheet information are available for two firms, firm a and firm quarterly. Characteristic of a company to pay its debts can be used at discretion! Or endorsed by any college or university c. Variable costs are direct costs ;.... Cash, and expense accounts are a subset of cash, and equipment to over! The United States are manufactured in China transactions by the relative proportion of sum! For March to the company expects to use an averaging method that weights transactions by the relative of! Allocation of the aging method of receivables are used was determined that $ 2,200 of the following statements a. The cost of the following would likely be excluded from the calculation # x27 ; normal. When they occur and outstanding encumbrances levy, which of the accounting period while... Grants that can be evaluated by using the ________ reviewing: c. appropriations minus the sum expenditures! 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Automatically decrease a firm 's retained earnings balance for the project on May 3 not or! Being recorded when the separate performance obligations are identified because there is a balance...