which of the following statements is true of revenues
(5) Which of the following best describes the concept of the aging method of receivables? C LP a. D b. 9. I, A508 Govt & Nonprofit Ch. Unearned revenues are not related to cash collections. This would also be apparent from section 132(4). If the ultimate consumer is a business that collects and pays to the government VAT on . (5) When is revenue from the sale of merchandise normally recognized? Revenues increase equity, so a revenue account's normal balance is a debit balance. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. Which two accounts would be most at risk? B Service Revenue Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. Amounts paid out as dividends are not expenses. 7. 2. B InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . 24. \begin{matrix} The following is true of a partnership. B)Total revenues during the year equal . debit Supplies Expense $1,000; credit Supplies $1,000 C Which of the following statements about accrual-basis accounting is true? 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. which of the following will be categorized as an operating activity on the statement of cash flows? Salaries and wages. P common stock is a separate account in the ________ category of the accounting equation. They would record it as a credit to revenue and debit to cash on May 15. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. B 3. B accrual-basis; May. Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. But increased competition has slowed their growth rate in the past few years. which of the following will be categorized as an investing activity on the statement of cash flows? If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? C Andy records an adjusting entry for deferred revenue. At the end of the year only permanent accounts are closed c. . b. At the end of the year budget and permanent accounts are closed b. A. T. UITION AND . A Debit Notes Payable $12,420 a. Appropriations. changing the method of valuing inventory ignores the principle of _________. the maturity value of a note is the _______. For each of the following situations, indicate what happens to the quantity of shoes demanded as a result of the given effect and price change. overstate net income and understate assets. which of the following assets must be reported at the lower-of-cost-or-market value? Use diagrams where appropriate. d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. 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? Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. b. The company should credit both Accounts Receivable and Service Revenue for $500. Change: The price of shoes increases. Amounts paid out as dividends are reported on the income statement. d. When beginning and ending inventories are each 50 percent complete. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. Journalize the entry to accrue interest on December 31st, 2022. Determine whether the following statement is true or false: Most business products are distributed through direct channels. C D B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. Debit Rent Expense $3,000; credit Prepaid Rent $3,000 Classify the term below into one of the following At that time, Prime provides Fine with 40% of the total payment for the project. Which of the following transactions would normally be recorded as an asset when cash is paid? c. Generally accepted accounting principles require companies to use cash-basis accounting. C Gift for the purchase of new playground equipment. Credit Cash $12,840 (Enter one word per blank.). 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. Yes, it is possible for a firm to do both. Decrease. D debit Supplies $900; credit Supplies Expense, $900 A Which of the following statements about revenue is correct? Q: revenues ew less than expenses, what . 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. 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. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. In order to be successful, however, the firm must provide full and transparent information related to any unusual or unexpected changes in revenues, expenses, gains, and/or losses. 3. overstate liabilities and understate stockholders' equity. Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? which of the following statements is true of a corporation? LP Amounts received from issued stock are reported on the income statement. Which of the following statements is true for other financing uses but is not true for expenditures? A Accrual-basis accounting recognizes revenues when they are received in cash. Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. Giovanni Food Products produces and sells frozen pizzas to public schools throughout the Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts. What is free cash flow, and how is it computed. C) depreciation is recorded on all plant assets. 5. The curve shows that the Law of Supply does not hold in this case. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? B b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 Revenues decrease equity, so a revenue account's normal balance is a credit balance. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? A d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. Traffic tickets. Increase. 33) 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. 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. A debt that a business owes is called __________. Which of the following statements is true about revenue? A 8. If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? which of the following accounts would appear in the balance sheet debit column of the worksheet? Eighty percent of the toys sold in the United States are manufactured in China. 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. Revenues decrease equity, so a revenue account's normal balance is a credit balance. \ A. it will report accounts receivable on the balance sheet at their net realizable value. Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. D in a perpetual inventory system, the physical count of inventory ____________. C)No net effect to the accounting equation. At December 31, 2019, GolfWorld should make the following adjustment: A. Debit Sales Revenue by $3,750 and credit Unearned Sales Revenue by $3,750. 10. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. If dividends for the year were $1,800, determine the ending retained earnings balance for the year. A Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming a. 3. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ 6. CS -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. Closing entries and a post-closing trial balance are steps in the accounting cycle that occur A. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. Liabilities are economic resources that are expected to benefit the business in the future. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Explain why the following statement is True, False, or Uncertain according to economic principles. <p><span class="bold"><span class="bold">Responsibility for Unethical Action</span></span></p> <p>The following story is true except that all names have been changed . C A. OB. Sales and Accounts Receivable In which of the following cases would an adjusting entry be required for Meadows Manufacturing? Residential trash disposal. B) amounts paid to make the asset ready for its intended use, A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period. Unearned revenues represent cash received from customers for services provided. a. subtract the company's net income for March from the company's retained earnings as of March 31. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. Jones Financial Services, Inc. performed accounting services for a client in December. Debit Rent Expense $18,000; credit Prepaid Rent $3,000 Under which of the ff. 7. On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. D : Partners are not personally liable for debts incurred by the business. Credits/debits. $18,200 Salaries earned from February 1st to March 1st are to be paid on March 10th. Investment earnings restricted for art preservation. C A special assessment for snow removal. . On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. annually. Interest Expense $825 8. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. Fund, function or program, organization unit, activity, character, and object. $$ A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. B advance cash payments of future expenses are called _________. 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. The adjusted trial balance lists only the balance sheet accounts in a "debit" and "credit" format. A D b. d. When goods or services are ordered. b. 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? D) the various inventory costing methods are not used in a periodic inventory system. Debit Interest Expense 280 C To estimate the amount of bad debt expense based on an aging of accounts receivable. Which of the following is the correct journal entry to record the budget? Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. G add the company's net income for March to the company's retained earnings as of March 1. total increases are $4,900 and the total decreases are $2,400. Q: Which of the following rules is incorrect ? The result of this oversight is that In December, Innovative Interiors completed redecorating Mega Corporation's headquarters. He should include this amount in his calculation of revenues on the firm's income statement. 2. P a. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. A They would record it as a credit to revenue on April 30 and a debit to cash on May 15. Donation of bonds to the city by a wealthy resident. Contracts need to be legally enforceable to be considered under ASC Topic 606. b. Most PCs manufactured in China use microprocessor chips . In this scenario, Income from space rented to a not-for-profit organization. (Only one word per blank). QP Corp. has a beginning retained earnings balance of $16,000. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. A. Neverthe gross method should always be used. got it correct. From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. $$ Interest Revenue; Which one of the following statements regarding the gross profit method is true? principal amount plus interest due at maturity. D Question 33 Correct answer-----Expense decrease owner's equity and revenue increases owner's equity. (3) Which of the following statements is false? Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. "2022 was a 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. 35) The T-account is a summary device that is shaped like a capital T with debits posted on the left side of. which of the following accounts decreases with a credit? C Which of the following statements is true of revenues? A B categories: Why might it be important to consider cultural influences on personality? Round to one decimal place; for part 6, round to two decimals. As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by overstated; $5,325. D Unearned revenues are reported on the Income Statement. a depreciable asset's cost minus accumulated depreciation is called __________. What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? \end{matrix} (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? _____________ is defined as the "cost of borrowing money." Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . B Accrual-basis accounting follows the fiscal year assumption. Meadows Manufacturing follows the accrual basis. C) quickly an asset may be converted into cash. Deferrals and Accruals. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. In an adjusting entry for expenses incurred but not yet paid ______. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. The adjusted balance for Prepaid Insurance at December 31, 20122, will be no journal entries are required for the reconciling items on the bank side because ___________. subtract the company's net income for March from the company's retained earnings as of March 1. 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. ), Adjusting entries: (Select all that apply.). In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. 9. c. The Actual column is required to be presented using the government's budgetary basis of accounting. They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. An accrual results when ____________ and a deferral results when P d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. A. Estimated Other Financing Sources. accrual-basis; April. debit Supplies $2,500; credit Supplies Expense $2,500. They would record it as a credit to revenue and debit to cash on April 30. 6. These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 higher than its total assets amount. Which of the following best describes the recommended format for the government-wide statement of activities? 2. ), 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). The company should debit Accounts Receivable for $500 and credit Service Revenue for $500. 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? Question 33 Which of the following is a true statement? 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. 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. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ B in a periodic inventory system, _________. Which of the following statements describes the effect that adjusting entries may have on liabilities? gross profit, operating income, net income. Gloria pays her insurance three times each year. 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. D Round answer to the nearest hundredth. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. 5. a. D All income statement, revenue and expense accounts are transferred at the end of the accounting period into the income summary account as a temporary owner's . Closing entries move the balances from the ______ accounts into the Retained Earnings account. D) usually reported in the notes to the financial statements. d. Insufficient information to determine the effect. The Variance column is required. Which of the following is correct concerning the presentation of the budgetary comparison schedule? product has been delivered after $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. Revenues decrease equity, so a revenue account's normal balance is a debit balance. Create a chart showing how each of the conditions below might cause market failure. When should supplies be recorded as an expense? Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. B Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). D D For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. C For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. A. **Required** B. Answer 2. d. Either report as a direct expense of the function or program with which the related depreciable assets are identified or report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs. liabilities are understated. D cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. d. If revenues are greater than expenses, the company has net income and retained earnings decreases overstated; $16,125. Record Revenues that were received in cash in an earlier period. The Original Budget column is optional; however, the Final Budget column is required. Environmental protection. On March 1, 2020, the firm prepaid $34,800 for 2 years' rent of a warehouse. which of the following accounting methods is used to account for controlling interest investments? 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. 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. Paul's received 100% of the total payment for the project on May 3. which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law.It is an agency of the Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the . Charges to a local university for extra city police protection during sporting events. Printing and postage. Which of the following statements regarding the statement of cash flows are correct? Record Revenues that will be received in cash in a subsequent period. S. TUDENT FEES. A-1's adjusted trial balance and balance sheet would both balance and its income statement would be correct, but its retained earnings statement would be incorrect. Final answer. eastern United States. Effect: the substitution effect 10. 7. Fill in your Name and Click on the Next button to start Billing mock Test A-1's income statement would be correct and its balance sheet would balance, but its adjusted trial balance would fail to balance and its retained earnings statement would be incorrect. \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ D) Revenues increase equity, so a revenue account's normal balance is a credit balance. A Yes, it is possible for a firm to do both. c. Variable costs are direct costs; only . Not personally responsible for the debts incurred by the business. overstate assets and net income. 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? F Federal grants restricted for highway construction. Notes Payable $137.50 If the annual premium is $924, find the amounts of the three payments. $0. C B accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. (Select all that apply.). B D b. On December 31, 2019, Reinhardt prepared closing entries. 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. In fact, the more a firm engages in earnings management practices in order to smooth out its revenues, expenses, gains, and/or losses, the higher its quality of earnings will be. preparing all accrual entries. A 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. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. d. Encumbrances. B Then solve it using the simplex method. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? FF B. A worksheet facilitates the preparation of the statement. 4. D 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. The magazines will begin to be delivered in October 2019. quarterly. B) Revenue is calculated by dividing the price per unit by the number of units sold. restrictions on retained earnings are _________. A which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? How do adjusting entries for accrued expenses affect liabilities and expenses? G (5) When should the net method be used to record sales revenue? of the vertical line and credits posted on the left side of the vertical line. Which of the following statements is not true? C.More tax revenue is raised if a tax is collected from both consumers and producers. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ B. the amount of revenues for which goods or services were provided during the current period, but not collected during the period. C c. Expenses minus program revenues equals net (expense) revenue. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. Cash and Sales. a. D Accrual-basis accounting is optional under . Motor vehicle fuel taxes restricted for road repair. Mayor's Office. Conceptually, when should Food To Go recognize revenue from its catering service? Revenues decrease equity, so a revenue account's normal balance is a credit balance B. Using the accrual basis of accounting, when should Montana recognize revenue? [1] [2] This may encompass providing a spouse in the context of forced marriage, [3] [4] [5] or the extraction of organs or tissues, [6] [7] including for surrogacy and ova removal. 6. (Enter one word per blank.). A When goods produced are homogeneous. \text{Notes receivable (trade)*}\ldots\ldots\ldots & \text{4,500} & \text{Long-term note payable, secured by mortgage on plant assets }\ldots\ldots\ldots & \text{63,400}\\ B.More tax revenue is raised if a tax is collected from producers. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. a. (Enter only one word.). Norbert Inc. delivered goods and services during December. preparing all adjusting entries. which of the following statements is true? 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. c. Using the trend equation developed in part (b), forecast revenue in year 11. b. The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. 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. under which of the following categories would Accounts receivable appear? c. When there is no ending inventory. daily. Expert Answer. (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. B. What is a single subject research methodology in behavioral sciences? Building permits to construct a deck at a residence. Which of the following is a true statement? 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. B Explain your reasoning. OU which of the following statements is incorrect? Which of the following statements is true regarding this supply curve? Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. Credit Cash $12,420. T An adjusting entry for accrued expenses involves: (Select all that apply.). Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. A. B An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. b. A C 6. (3) Which transaction would require adjustment at December 31? The entry reflects total wage and salary expense this period of $8,000. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . A D (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement.
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