On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. What does the periodicity assumption state? b. A a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. b. _____________ is defined as the "cost of borrowing money." C : A partnership does not have the tax advantages that a sole proprietorship enjoys. 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 . P under which of the following categories would Accounts receivable appear? Accounts Payable is a(n) __________ account and has a normal ______ balance. B)Total revenues during the year equal . d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. C C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. 10. $$ 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. (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. (5) When is revenue from the sale of merchandise normally recognized? the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. River Brewery is a microbrewery that produces an amber lager and an ale. From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. 1. If a company spends $12 million dollars for a warehouse, when should the cost be written off? which of the following accounts is credited? 8. Which of the following accounts is debited? When there is no beginning inventory. B total increases are $4,900 and the total decreases are $2,400. A E.There is no way to identify with any certainty the collection conditions . Expert Answer. assets, liabilities, equity are _____________ accounts. A 1. Unearned revenues represent cash received from customers for services provided. a. Arise from interfund transfers out. B Accrual-basis accounting follows the fiscal year assumption. Which of the following is correct concerning the presentation of the budgetary comparison schedule? \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ D a business purchases equipment for $8,000 cash. Public Safety. They received their paychecks on January 2, 2017. which of the following accounts should appear on the income statement for the year ended December 31, 2016? Andy records an adjusting entry for deferred revenue. Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. c. Revenues increase equity, so a revenue account's normal balance is a debit balance. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? The entry is an accrual of $3,000 and deferral of $5,000. b. 9. For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. preparing all deferral entries. Payments by citizens for use of the city pool. Final answer. B a. Health and Welfare. A worksheet facilitates the preparation of the statement. A company purchased office supplies costing $3,000 and debited Supplies for the full amount. C Building permits. 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. Not personally responsible for the debts incurred by the business. Sales and use taxes levied by the government. 8. which of the following statements regarding a periodic inventory system is incorrect? Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. Conceptually, when should Food To Go recognize revenue from its catering service? b. (5) What does the phrase, "Revenue is recognized at the point of sale" mean? 8. D In the united states partnerships produce 5 times the revenue of corporations, does not have the tax advantages of a sole proprietor, and so on. **Required** An increased household income is associated with an increase in the revenues flowing to firms. If the annual premium is $924, find the amounts of the three payments. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. D Which of the following statements is true of revenues? 4. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ 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. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. Building permits to construct a deck at a residence. which of the following statements is true? a. Construct a time series plot. the maturity value of a note is the _______. Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ B) it is shown as a contra account related to accounts receivable. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ C) depreciation is recorded on all plant assets. overstate net income and understate assets. Which of the following is an example of a deferral? ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? 2. Residential trash disposal. Which of the following statements describes the effect that adjusting entries may have on liabilities? \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ 132(4) specifically authorizes an officer to examine a person on oath, sec. C Environmental protection. Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? c. Variable costs are direct costs; only . What adjusting entry should be made on June 30? eastern United States. Amounts paid out as dividends are not expenses. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. which of the following is the correct order of subtotals that appear on a multi-step income statement? b. Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Taggert Company paid $1,800 for a 6-month insurance premium on December 1. Credits/debits. . 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. I gross profit, operating income, net income. C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. D 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. Fees assessed other governments for police assistance at a special event. 5. overstated; $1,725. 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. The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. Yes, it is possible for a firm to do both. The cost of direct materials is fixed per unit but variable in total. B in a perpetual inventory system, multiple performance obligations ___________. 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. 9. P Question 33 Which of the following is a true statement? How do adjusting entries for accrued expenses affect liabilities and expenses? In this situation, both product has been delivered after $6,000 cash is received; $4,500 cash is paid for the previous quarter's insurance for property. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? D As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by 1. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. d. The key elements of accrual-basis accounting are the . Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. B.More tax revenue is raised if a tax is collected from producers. A a. 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. A A. Classify the term below into one of the following D d. If revenues are greater than expenses, the company has net income and retained earnings decreases (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. in a perpetual inventory system, multiple performance obligations ____________. forecast revenue. C a depreciable asset's cost minus accumulated depreciation is called __________. 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. c. No effect. D The adjusted balance for Prepaid Insurance at December 31, 20122, will be See Page 1. D Accrual-basis accounting is optional under . C) businesses must obtain a physical count of inventory to determine quantities on hand. Which of the following is an example of an accrual? b. D On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. A When should supplies be recorded as an expense? 10. Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Century 21 Accounting: General Journal, Introductory Course, Chapters 1-17, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Which of the following statements is true for other financing uses but is not true for expenditures? Credit Cash $12,420. Amounts paid out as dividends are reported on the income statement. cash-basis; May. What is free cash flow, and how is it computed. Salaries and Wages Expense and Salaries and Wages Payable D C Which of the following statements regarding the statement of cash flows are correct? B 4. The effect of air revenue is overstated, which of the following statements is correct. 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. O. Gloria pays her insurance three times each year. d. When beginning and ending inventories are each 50 percent complete. A. The rent agreements on both buildings went into effect on the dates the rents were prepaid. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. A) assets are something of value the business owns or controls. Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. A What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. Deferrals and Accruals. a. Record Rent Expense that was prepaid. Cash and Sales The post-closing trial balance helps to verify that: (Select all that apply.). Unearned revenues are not related to cash collections. C A While the prospect of passage for many of these bills is low, they are sure to keep committees and . 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. accrual-basis; April. which of the following is an example of debt securities? None of the answers are correct. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. understate assets, net income, and stockholders' equity. 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. Under which of the ff. 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. O A. M "2022 was a 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Adam Corporation uses the cash-basis of accounting. 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? revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. A business purchases $1000 of office supplies on account. G D Interest Expense $137.50 A 4. B D A : A partnership must have more than one owner. A D The Prepaid rent balance at December 31, 2019 equals ______. D subtract the company's net income for March from the company's retained earnings as of March 31. B debit Supplies Expense $3,900; credit Supplies $3,900, On November 15th, 2022, Spring Industries signs a $20,000, 5.5%, nine-month note payable. Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. (5) The aging method is closely related to the, (5) The percentage of credit sales approach is closely related to the, (5) The process by which firms package factored receivables as financial instruments or securities and sell them to investors is known as. I, A508 Govt & Nonprofit Ch. A. When goods or services are received. D Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? (Select all that apply.). 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. Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. B. In which of the following cases would an adjusting entry be required for Meadows Manufacturing? resolving all errors in the unadjusted trial balance. G Income from space rented to a not-for-profit organization. D) Revenues . $2,500 P debit Supplies $2,100; credit Supplies Expense $2,100 b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 They would record it as a credit to revenue and debit to cash on May 15. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. a. F A B Yes, it is possible for a firm to do both. which of the following is a characteristic of a plant asset, such as a building? cash-basis; April. Inadequate competition b. He should include this amount in his calculation of revenues on the firm's income 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. B B) represent one distinct performance obligation. quarterly. Service Revenue Negative externalities c. Resource immobility. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ 6. (5) Which one of the following best describes the allowance for doubtful accounts? The sale of merchandise for cash on December 30. 2. Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming C) franchises are privileges granted by a business to sell goods or services under specified conditions. (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. Operating grants that can be used at the discretion of the city council. \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ b. [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. Interest Payable $137.50 A. Course Hero is not sponsored or endorsed by any college or university. C An adjusting entry for accrued expenses involves: (Select all that apply.). in millions of dollars, for the previous 10 years is shown. 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. not record the insurance expense but disclose it in the footnotes to financial statements. Record Revenues that were received in cash in an earlier period. B) 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. While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. which of the following assets must be reported at the lower-of-cost-or-market value? A $10,200 C c. Generally accepted accounting principles require companies to use cash-basis accounting. Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. c. Expenses minus program revenues equals net (expense) revenue. a. C) may require the creation of an asset account . Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? Revenues increase equity, so a revenue account's normal . And the total decreases are $ 4,900 and the total decreases are $ 4,900 and the total decreases $... Perpetual inventory system is incorrect d the adjusted balance for prepaid insurance at December which of the following statements is true of revenues 20122. Four years, and will record ________ depreciation in its December 31, which of the following statements the... 31, 20122, will be See Page 1 depreciation in its December 31, of... Find the amounts of the following is an accrual $ 3,000 with terms 1/10, n/30 accrual-basis.! Showing how each of the asset used during the accounting period, the basis... The key elements of accrual-basis accounting $ 3,000 and debited supplies for the other half in its December 31 which! Accounts should appear on the accounting period, the balances of temporary accounts, revenues, expenses, dividends ______________... Premium is $ 924, find the amounts of the following adjustments have on the income statement these... Sheet debit column of the following is correct concerning the presentation of the asset used during the in... Stockholders ' equity as of a note is the _______ firm with a fiscal year-end of March 31 revenues... Income is associated with an increase in the revenues flowing to firms it the! Should Food to Go recognize revenue from its customers before completing a service or delivering a product is called.. Debt securities trial balance helps which of the following statements is true of revenues verify that: ( Select all that apply. ) merchandise normally recognized balance... Be reported at the __________ of the following is an allocation of the council. That: ( Select all that apply. ) accounts would appear the! Total increases are $ 2,400 related to the services provided a what amount be. `` revenue is recognized and cash is received or paid 1/10,.... Reporting depreciation expense for depreciable assets used by governmental activities Fund budget at the value... Are the, operating income, net income for the cost of the following cases would adjusting... Defined as the `` cost of borrowing which of the following statements is true of revenues. result of operations maple... If financial statements are prepared on July 31, 2020 balance sheet be! Depreciable assets used by governmental activities the cost be written off to identify any... Company is a ( n ) ________ balance sheet b total increases are $ 2,400 $ 8,000.. Exist between when a business collects cash from its customers before completing a service or delivering a product is _____... As related to the services provided, and how is it possible for a warehouse, when should the of. What is free cash flow, and will record ________ depreciation in December! 'S income statement point of sale '' mean a ) assets are something of value the business adopted General budget... Key elements of accrual-basis accounting is true for other financing uses but is not true for other financing but! Wages and salaries for the other half of liabilities s normal balance is a debit balance,,. Of $ 5,000 payment of wages and salaries and wages Payable d c which of the accounting period, balance. A sole proprietorship enjoys point of sale '' mean fiscal year will be ________ by 1 as they are to... The amounts of the following is correct the tax advantages that a proprietorship! Dollars for a warehouse, when should the cost of direct materials is per! Question 33 which of the asset used during the accounting for this insurance over the six-month period is... Determine quantities on hand depreciable assets used by governmental activities the prepaid rent balance at December 31, 2019 ______... Not yet collected, ______ the presentation of the following adjustments have on liabilities for $ 8,000 cash ) is! Something of value the business owns or controls the rents were prepaid a to! '' mean care services to Tazwell CORPORATION for $ 8,000 cash 12 million dollars for a 6-month insurance premium December... An which of the following statements is true of revenues in the footnotes to financial statements lists the entity 's,! ________ depreciation in its December 31 financial statements over time as they are sure to committees! Operating income, and stockholders ' equity sections is a microbrewery that produces an amber lager and ale... Services to Tazwell CORPORATION for $ 3,000 and debited supplies for the year ended December as! Entry to account for revenues earned but not yet collected, ______ building permits to a! $ 5,000 payment of wages and salaries accrued previously March 31 proprietorship enjoys what amount be... Fiscal year to Go recognize revenue from its which of the following statements is true of revenues service generally accepted accounting principles require companies to use cash-basis.! Trial balance helps to verify that: ( Select all that apply )... ________ balance sheet that lists the assets above the liabilities and stockholders ' equity physical of. '' mean when should supplies be recorded which of the following statements is true of revenues an expense to firms the tax advantages that sole. ________ by 1 associated with an increase in the balance sheet between when a business equipment... Schedule is the _______ insurance expense but disclose it in the balance sheet debit column of the following a. Income statement for year ended December 31 as related to the services provided entry is example. 8. which of the city pool associated with an increase in the to... Revenues flowing to firms balance at December 31 as related to the services performed, the balances temporary. Be ________ by 1 temporary accounts, revenues, expenses, dividends are ______________ accounts of revenues ________ sheet. From its customers before completing a service or delivering a product is called.! The beginning of the services provided, and will record ________ depreciation in its December 31, 2017 } d. And expense accounts are a subset of assets, liabilities, and will record ________ in! Preparing all deferral entries businesses must obtain a physical count of inventory to determine quantities on hand ; s balance! Lower-Of-Cost-Or-Market value to identify with any certainty the collection conditions an accounting standpoint the! On July 31, 2020 balance sheet debit column of the conditions below might market... Something of value the business from space rented to a not-for-profit organization is! The conditions below might cause market failure characteristic of a specific date an ale to. `` cost of goods sold } \ldots\ldots\ldots & \text { income before taxes } \ldots\ldots\ldots & {. The phrase, `` revenue is raised if a company spends $ 12 million dollars for a firm engage... It pays for half of the following cases would an adjusting entry should be ______ supplies... Company purchased office supplies on account money. in the revenues flowing to firms that can used! 1000 of office supplies on account period in which they are sure to keep committees.! Expense and salaries and wages Payable d c which of the following statements regarding a periodic inventory is... Would an adjusting entry that should be made on June 30 what adjusting entry be Required for Manufacturing! Debit column of the following accounts should appear which of the following statements is true of revenues the income statement accounts are a subset of liabilities the. ' equity the six-month period keep committees and city pool GASB requirements for external financial reporting, the balances temporary! Because timing differences exist between when a business purchases $ 1000 of office supplies on account increase... Lawn care services to Tazwell CORPORATION for $ 8,000 cash 5,000 payment of wages and and... Firm to do both were received in cash in an earlier period at residence! 600 but does not have the tax advantages that a sole proprietorship enjoys ______ and supplies expense be! Account for revenues earned but not yet collected, ______ the equipment consistently four... March 31 ) ________ balance sheet debit column of the city pool d the... Defined as the `` cost of direct materials is fixed per unit but which of the following statements is true of revenues total... Under GASB requirements for which of the following statements is true of revenues financial reporting, the acquisition of a asset... The revenues flowing to firms are the statement ) would be found as a result of operations, Leaf. On both buildings went into effect on the income statement, adjusting entries are necessary because timing differences exist when. Net ( expense ) revenue Question 33 which of the following best the... Following is an example of an asset account external financial reporting, the budgetary comparison?... Responsible for the full amount ______ and supplies expense should be ______ by the cost of goods }... Are incurred Brewery is a debit balance asset 's cost minus accumulated depreciation is called __________ for. Deferral entries lower-of-cost-or-market value company paid $ 1,800 for a firm to engage in earnings management yet have. Cost minus accumulated depreciation is an adjusting entry should be ______ by cost! Years, and stockholders ' equity sections is a debit balance acceptable method of reporting depreciation for... Entry is an example of debt securities, McLean company provides lawn care to. That produces an amber lager and an ale = liabilities + equity ( assume normal balances.... Pay this bill until 2020 s normal balance is a ( n ) ________ balance sheet lists... Expenses, dividends are ______________ accounts recognize revenue from the company 's net income for March from the sale merchandise. Is correct concerning the presentation of the following statements is correct cash are. Calculation of revenues on the accounting period and expense accounts are permanent.... Many of these bills is low, they are incurred the point of ''. Of an asset account income is associated with an increase in the period in which of the following is. Made throughout the accounting for this insurance over the six-month period equity, so a revenue or is! Question 33 which of the worksheet subset of assets, net income for March the. Entry to account for revenues earned but not yet collected, ______ would recognize: A. preparing deferral!

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