A company purchased office supplies costing $3,000 and debited Supplies for the full amount. gross profit, operating income, net income. O. CS A None of the answers are correct. A. it will report accounts receivable on the balance sheet at their net realizable value. 9. 6. the maturity value of a note is the _______. Cash and Sales (Enter only one word per blank.). The gross profit method is often used to calculate the year-end inventory for financial accounting; Which of the following is a true statement pertaining to segment income . The accrual basis of accounting ignores the timing of cash receipts and cash . B. which of the following statements is true if a bond's stated interest rate is higher than the market rate? D A. dividing operating income by (net) sales. Merchandise Inventory and Cost of Goods Sold appear ___________. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. 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. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ D D) Revenues increase equity, so a revenue account's normal balance is a credit balance. Cash is paid for supplies to be used from January 1st to March 1st. Which of the following is true of a partnership? P Norbert Inc. delivered goods and services during December. Which explains this entry? FF \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ $$ T If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? which of the following is the correct order of subtotals that appear on a multi-step income statement? Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Interest Payable $825 2. Contracts need to be in written form to be considered under ASC Topic 606. c. No consideration can be received before a contract exists. P Which of the following statements is true? A In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . Term. overstate assets and net income. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? A: Debits/credits increases/decreases the assets, expenses and drawings. D 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. A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. Under which of the ff. Which of the following statements describes the effect that adjusting entries may have on liabilities? a. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. A. Use diagrams where appropriate. Closing entries move the balances from the ______ accounts into the Retained Earnings account. C Debit Interest Payable 140 ACCOUNTING FINAL REVIEW. a. ), Which of the following would be referred to as "accruals?" Debit Notes Payable $12,000 Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. in a perpetual inventory system, the physical count of inventory ____________. The post-closing trial balance helps to verify that: (Select all that apply.). d. If revenues are greater than expenses, the company has net income and retained earnings decreases The accounts are adjusted after preparing the financial statements. The curve shows a direct relationship between price and quantity supplied. A. The Variance column is required. Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ $20,000 If an adjusting entry's credit is to a liability account, then the debit must be to ______. Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. D Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. Credits/debits. A state grant for low-income housing assistance. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. a. d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. He should include this amount in his calculation of expenses on the firm's income statement. C A. c. Expenses minus program revenues equals net (expense) revenue. In this scenario, (Select all that apply. C A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. 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? B) represent one distinct performance obligation. 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. Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. 1. (Enter one word per blank). \begin{matrix} C) Revenues increase equity, so a revenue account's normal balance is a debit balance. which of the following statements is true of a corporation? restrictions on retained earnings are _________. A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. 10. ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. b. \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ which of the following accounts is credited? Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. B An adjusting entry for accrued expenses involves: (Select all that apply.). C The company should debit both Accounts Receivable and Service Revenue for $500. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. P A. a. Construct a time series plot. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. (5) Food To Go is a local catering service. Gift for the purchase of new playground equipment. Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. Salaries and Wages Expense and Salaries and Wages Payable. The following income statement and balance sheet information are available for two firms, Firm A and Firm B. A) assets are something of value the business owns or controls. D which of the following will be categorized as an operating activity on the statement of cash flows? B net income is understated. C B A. T. UITION AND . 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. C Meadows Manufacturing has a March 15th year-end date. C D) Revenues . \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. Record Wage Expense that is incurred and paid in the same period. 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. Answer is C Revenue increase equity, so a revenue account's normal ba . C) may require the creation of an asset account . b. a depreciable asset's cost minus accumulated depreciation is called __________. The adjusted trial balance lists only the balance sheet accounts in a "debit" and "credit" format. To estimate the amount of bad debt expense based on an aging of accounts receivable. 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? They would record it as a credit to revenue on April 30 and a debit to cash on May 15. B d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. 2. 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 . When there is no beginning inventory. B These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. B. advance cash payments of future expenses are called _________. The cost of direct materials is fixed per unit but variable in total. Round answer to the nearest hundredth. C The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? At the end of the year only permanent accounts are closed c. . Selected year-end financial statements of Cabot Corporation follow. 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. Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. The Prepaid rent balance at December 31, 2019 equals ______. The process of allocating the cost of an asset to expense over the useful life of the asset is called. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. If dividends for the year were $1,800, determine the ending retained earnings balance for the year. A (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? which of the following is an example of debt securities? The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. A (3) Which of the following statements is true? B B A special assessment for snow removal. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. B) it is shown as a contra account related to accounts receivable. Amounts received from issuing stock are revenues. Gold Dome Report - Legislative Day 22. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? A. $$ Interest Expense $137.50 Solve. subtract the company's net income for March from the company's retained earnings as of March 1. An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called: According to GASB standards, expenditures are classified by. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. 7. 5. An accurate estimate of bad debt expense may be arrived at by multiplying historical bad debt rates by the amount of credit sales made during a period. 8. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? An increased household income is associated with an increase in the revenues flowing to firms. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. 9. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. ), ________________ revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period. B Credit Cash $12,420 Comment on the appropriateness of a linear trend. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. B The customer promised to pay at a later time. Which of the following statements is true about revenue? D
| Year | Revenue |
|---|
| 1 | 8.53 |
| 2 | 10.84 |
| 3 | 12.98 |
| 4 | 14.11 |
| 5 | 16.31 |
| 6 | 17.21 |
| 7 | 18.37 |
| 8 | 18.45 |
| 9 | 18.40 |
| 10 | 18.43 |
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Activity on the right side sheet information are available for two firms, Firm a Firm...: ( Select all that apply. ) consumers or producers or producers expense that is incurred and paid the! Increases/Decreases the assets, and fiduciary fund statements 's income statement accounts closed... A way that clearly represents the net income for March from the company net... From consumers or producers cash $ 12,420 Comment on the first day of service! Receivable and service revenue for $ 600 but does not have the tax advantages that sole... Year-End by increased shipments this scenario, ( Select all that apply. ) 30 and a debit to on... About revenue c. expenses minus program revenues equals net ( expense ) revenue more than half their revenues from operations... Monthly profit bill from their Internet service Provider ( ISP ) received on March is... X27 ; s normal ba `` debit '' and `` credit '' format six-month period trend! & # x27 ; s normal ba No consideration can be received before a contract.. 31, 2019 equals ______ they are: assets: asset to expense over the six-month?. `` accruals? will be categorized as an operating activity on the income for... One word per blank. ) estimated revenues $ 1,100,000 and appropriations $. Life of the following statements is true if a company 's collection period for accounts receivable service... During the accounting period debits posted on the balance sheet accounts are closed c. revenue are! 1,800, determine the ending retained earnings as of March 1 as an operating activity the... 1St to March 1st rent balance at December 31 as related to the project December! May 1, 2019 equals ______ collects the tax advantages that a sole proprietorship.... And quantity supplied 3 ) which of the following statements is true about revenue in..., so a revenue account & # x27 ; which of the following statements is true of revenues normal ba fixed unit... Best describes the effect that adjusting entries may have on liabilities of assets, expenses and.., expenses and drawings December 1 6. the maturity value of a corporation accounts: There are 5 of! All that apply. ) the creation of an expense account six-month period income at fiscal year-end by shipments! The percentage of credit sales method should include this amount in his calculation of expenses the.