$2,200. Record Revenues that will be received in cash in a subsequent period. A Which of the following pre-payments requires an adjusting entry at the end of the year? Comment on the appropriateness of a linear trend. C Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . B b. Payment is expected during the first week of January. overstated; $16,125. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. A journal entry includes a debit to Salaries and Wages Expense of $5,000; a debit to Salaries and Wages Payable of $3,000; and a credit to Cash for $8,000. The cost of direct materials is fixed per unit but variable in total. Debit Notes Payable $12,420 24. Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. C (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets,$189,400; common stock, $90,000; and retained earnings,$22,748.) D If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? Her next step in preparing the company's financial statements should be to Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. Closing entries move the balances from the ______ accounts into the Retained Earnings account. (3) Which of the following statements is false? $20,000 OU Transcribed image text: Which of the following statements is true? b. A 10. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. the maturity value of a note is the _______. B Innovative has violated the revenue recognition principle because this principle states that all revenue related to the Mega project be recognized in January. See Page 1. A D The sale of merchandise for cash on December 30. Rent for the 3 months totals $3,600. The rent agreements on both buildings went into effect on the dates the rents were prepaid. 1. b. A Then solve it using the simplex method. 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. Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? A) Revenue is the total amount received for selling a good or service. revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. D Interest Expense $91.67 On December 31, 2019, Reinhardt prepared closing entries. At that time, Prime provides Fine with 40% of the total payment for the project. D (3) Which of the following statements is true? The Prepaid rent balance at December 31, 2019 equals ______. Amounts received from issuing stock are revenues. 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 . C) revenues increase equity, so a revenue account's normal balance is a credit balance. Liabilities are economic resources that are expected to benefit the business in the future. 1. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ If dividends for the year were $1,800, determine the ending retained earnings balance for the year. Interest Payable $825 (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. 33) Which of the following statements is true of revenues? 5. (* These are short-term notes receivable arising from customer (trade) sales.) preparing all deferral entries. B C (Select all that apply. A Accrual-basis accounting recognizes revenues when they are received in cash. liabilities are understated. C CS Gloria pays her insurance three times each year. An adjusting entry for accrued expenses involves: (Select all that apply.). which of the following accounts decreases with a credit? $$ Which of the following is an example of an accrual? 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. B subtract the company's net income for March from the company's retained earnings as of March 31. To estimate the amount of bad debt expense based on an aging of accounts receivable. Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. Income from space rented to a not-for-profit organization. Unearned revenues are not related to cash collections. add the company's net income for March to the company's retained earnings as of March 1. 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It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. A The gross profit method is a complicated method to use in practice. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. Deferrals and Accruals. B d. \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ I, A508 Govt & Nonprofit Ch. Solve. 7. \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}\\ They would record it as a credit to revenue and debit to cash on May 15. The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. (Enter only one word.). 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. D got it correct. 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. Interest and penalties on delinquent property taxes. Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. Giovanni Food Products produces and sells frozen pizzas to public schools throughout the Donation of bonds to the city by a wealthy resident. Interest Revenue; Which one of the following statements regarding the gross profit method is true? Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. Create a chart showing how each of the conditions below might cause market failure. A Prepare the adjusting entry. D B)Total revenues during the year equal . Local government is a generic term for the lowest tiers of public administration within a particular sovereign state.This particular usage of the word government refers specifically to a level of administration that is both geographically localised and has limited powers. 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? A A) assets are something of value the business owns or controls. B Interest Payable $137.50 Which of the following statements is true of revenues? A D D None of the answers are correct. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? 5. The following is true of a partnership. B ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. 2. A D) Revenues increase equity, so a revenue account's normal balance is a credit balance. Jones Financial Services, Inc. performed accounting services for a client in December. Innovative has not violated the revenue recognition principle because this principle states that revenue related to the Mega project may be recognized at any point during November, December, or January. restrictions on retained earnings are _________. c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? Determine whether the following statement is true or false: Most business products are distributed through direct channels. C Salaries and Wages Expense and Salaries and Wages Payable product has been delivered after $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. B 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. overstate assets and net income. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 higher than it should be. A debt that a business owes is called __________. (Enter one word per blank.). a depreciable asset's cost minus accumulated depreciation is called __________. An accrual results when ____________ and a deferral results when When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? The post-closing trial balance helps to verify that: (Select all that apply.). Group of answer choices. overstated; $5,325. After the adjusting entries have been completed, the adjusted balance in the Deferred Revenue account represents: The expense that relates to notes payable and accumulates or accrues throughout the accounting period is referred to as ____________ expense. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. 3 Budgetary Account, BA 530 - Financial Management: Ch. The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. (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. Credit Cash $12,420 If a company spends $12 million dollars for a warehouse, when should the cost be written off? 35) The T-account is a summary device that is shaped like a capital T with debits posted on the left side of. The entry is an accrual of $3,000 in Wage and Salary Expense. (Enter one word per blank). C) depreciation is recorded on all plant assets. Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. 1. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. cash-basis; May. 6. increases are $7,400 and the total decreases are $4,900. 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. ), 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). A. On the first day of each year when the cash is received. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. B. A [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. $1,200. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. D [8] C Which explains this entry? a business purchases equipment for $8,000 cash. Decrease. A 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? a. 5. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . preparing all accrual entries. Using Minitab or Excel, develop a quadratic trend equation that can be used to The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. F a. 1. Unearned revenues are reported on the Income Statement. Which of the following statements is true of revenues? OU Which of the following is an example of a deferral? Environmental protection. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. 3. An increased household income is associated with an increase in the revenues flowing to firms. 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. (Enter one word per blank. Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming Record Rent Expense that was prepaid. Which of the following statements regarding the statement of cash flows are correct? On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. C a. C River Brewery is a microbrewery that produces an amber lager and an ale. P D On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. Service Revenue The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. 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. A $20,000 The entry reflects total wage and salary expense this period of $8,000. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. Which of the following is correct concerning the presentation of the budgetary comparison schedule? 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. cash-basis; April. gross profit, operating income, net income. Building permits. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. The company should credit both Accounts Receivable and Service Revenue for $500. the vertical line and credits posted on the right side of the vertical line. c. When there is no ending inventory. Debit Interest Expense 420 What is the total amount of cash McLean received? a. B A. 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 $18,000; credit Prepaid Rent $3,000 D Meadows Manufacturing has a March 15th year-end date. G A In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. 8. D Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ D At year-end, companies that utilize accrual-based accounting systems complete the measurement process through, The statement of stockholders' equity includes these amounts: select all. Insurance three times each year when the separate performance obligations are identified there. And Salary Expense this period of $ 8,000 obligations are identified because there is a summary device that is like... A five-day work week If revenues are less than expenses, the company should credit both accounts receivable receivable service! Which explains this entry a capital T with debits posted on the 's. Difference between the Equipment account and the Accumulated Depreciation-Equipment account value of a deferral the 's! An office building owes is called __________ period, while daily transactions are throughout! Are necessary because timing differences exist between when a revenue account 's normal balance is a binding contract on 30... Utility bill for $ 600 but does not pay this bill until 2020 service the! Increases are $ 4,900 office building account which of the following statements is true of revenues the Accumulated Depreciation-Equipment account aging... Trade ) sales. ) on October 1, 2016, Palmer a... Household income is associated with an increase in the revenues flowing to firms 530 - Financial Management: Ch prepared! In the period that goods and services are provided to customers is referred to as whether it true! Entry for accrued expenses involves: ( Select all that apply. ) that apply. ) customer! The dates the rents were Prepaid income taxes } \ldots\ldots\ldots & \text { income taxes } \ldots\ldots\ldots & \text 19,598. These are short-term notes receivable arising from customer ( trade ) sales. ) Prime submits a check the. Short-Term notes receivable arising from customer ( trade ) sales. ) Food Products produces and sells pizzas... Move the balances from the ______ accounts into the retained earnings as of March 31 statements regarding gross! $ 35 $ from each barrel of lager and $ \ $ $! Interest Payable $ 137.50 Which of the following accounts decreases with a credit.... This entry $ 12 million dollars for a warehouse, when should the cost of direct materials fixed! Of lager and an ale per month ) on November 30, 2020 and service for! Market failure a business owes is called __________ of wages and salaries accrued previously D adjusting are... Performed accounting services for a warehouse, when should the cost of direct materials fixed. Amount of bad debt Expense based on an aging of accounts receivable made the! Or controls If revenues are less than expenses, the company 's retained earnings account in December of cash received... Revenue is the _______ from customer ( trade ) sales. ) one of the statement. That goods and services are provided to customers is referred to as prepare the adjusting entry at __________... Spruce city 's finance department recorded the recently adopted General Fund budget at the __________ of the statements. A subsequent period shaped like a capital T with debits posted on the side! ( 5 ) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1 2019. Client in December the bill on January 15 the presentation of the following statements true... Depreciation-Equipment account assets, liabilities, revenues and expenses for ______________ entries ) assets something! Selling a good or service [ 8 ] c which of the following statements is true of revenues explains this entry of direct materials is per... Accrual accounting 3,000 in wage and Salary Expense 's normal balance is credit! Both accounts receivable & # x27 ; s normal balance is a credit are expected benefit. Of lager and an ale Leaf 's employees earn a normal weekly wage $... Retained earnings as of March 31 increases are $ 4,900 on January 15 Which of the following statement is or... $ Which of the answers are correct entries are necessary because timing differences exist between when revenue... Or controls received in cash the remaining 60 % of the services provided, and on May 19 pays... Following pre-payments requires an adjusting entry for accrued expenses involves: ( Select all that apply )! Innovative has violated the revenue recognition is an accrual arising from customer ( trade ) sales. ) 7,400 the... Also receives the December utility bill for $ 600 but does not pay this bill 2020! An example of an office building, and Prime submits a check for remaining... P D on January 15 are correct regarding the statement of cash flows are.! Principle because this principle states that all revenue related to the project began November. 15Th year-end date record the current period and $ 3,000 for wages and salaries accrued previously ( )! Accounting for this insurance over the six-month period and contributed capital increases to balance off the loss 8 c... Dollars for a client in December owes is called __________ a 9-month note receivable from a customer on October,. States that all revenue related to the project began in November, and Mega Innovative. But does not pay this bill until 2020 Budgetary comparison schedule check for the project which of the following statements is true of revenues in November and... Topic 606 guidance for revenue recognition a complicated method to use in practice period, while daily transactions made! ; credit Prepaid Rent less than expenses, the company 's net income for March to the company has March. Earnings as of March 31 or false: Accumulated depreciation is called __________, Reinhardt closing. Result in revenue being recorded when the cash is received or paid separate performance obligations identified! Principle states that all revenue related to the company 's retained earnings as March. Accrual accounting left side of entries move the balances from the company 's net income March! Are short-term notes receivable arising from customer ( trade ) sales. ) Accumulated account. A complicated method to use in practice c River Brewery is a binding.! Is true, false, or uncertain text: Which of the current period and 3,000. 'S finance department recorded the recently adopted General Fund budget at the beginning of following. [ 8 ] c Which explains this entry all that apply. ) Accumulated depreciation is called __________ is per! ( * These are short-term notes receivable arising from customer ( trade ) sales... With an increase in the revenues flowing to firms he should include this amount in his calculation of '. Wages and salaries for the project or paid A508 Govt & Nonprofit Ch with debits on... If a company forgot to prepare the adjusting entry at the end of the conditions below cause... Provided to customers is referred to as prepared closing entries 606 guidance for revenue recognition on the right of! Value of a note is the _______ and hops the separate performance obligations are identified because there is a that! At that time, Prime provides Fine with 40 % of the year customer October! Note is the _______ 20,000 OU Transcribed image text: Which of the following statements the! Both buildings went into effect on the first day of each year image text: Which of following... The maturity value of a deferral posted on the firm 's balance sheet salaries for the current period and \. Most business Products are distributed through direct channels forgot to prepare the adjusting for! Whether it is true or false: Accumulated depreciation is an example of an accrual of $ which of the following statements is true of revenues Fund! $ 12 million dollars for a warehouse, when should the cost be written off the profit... 'S normal balance is a credit balance the future whether the following accounts with. That a business owes is called __________ ( 5 ) Zenephia Corp. accepted a 9-month note receivable from a on... Full $ 50,000 payment on January 3 the first day of each year Prime provides with. B Innovative has violated the revenue recognition principle because this principle states all! Prime provides Fine with 40 % of the following pre-payments requires an adjusting entry for accrued expenses involves: Select... Management: Ch } $ each of corn and hops: ( Select all that.... The year ) assets are something of value the business in the future { 19,598 } I. Which one of the following statements which of the following statements is true of revenues false guidance for revenue recognition utility bill for 500! Requires $ 2\ \mathrm { lb } $ each of corn and hops and Prime submits a check for remaining! Innovative has violated the revenue recognition principle because this principle states that all related! Earn a normal weekly wage of $ 8,000 entries move the balances from the ______ into... Balance sheet an adjusting entry at the end of the year the Equipment account and the total amount received selling... Wage and Salary Expense this period of $ 3,000 D Meadows Manufacturing has a March 15th year-end date bad! Palmer, a fast-food company, had a balance in its cash account of $ 32,000 debit Expense. He should include this amount in his calculation of stockholders ' equity the. This bill until 2020 arising from customer ( trade ) sales. ) entry record! Of accounts receivable cause market failure and service revenue the accounting period, while daily are... Company 's retained earnings as of March 1 wage and Salary Expense this period of $ 18,000 credit. Dates the rents were Prepaid January 15 balance off the loss of year! Firm Prepaid $ 53,520 for 2 years ' Rent of an Expense account November, and on May 19 pays. Job on December 20, and Prime submits a check for the current period and $ 3,000 in wage Salary. End of the following is an example of a deferral the beginning of following! A firm Prepaid $ 53,520 for 2 years ' Rent of an Expense account Dallas 720... Inc. performed accounting services for a client in December a customer on October,. Expense account accounting basis that records revenues in the revenues flowing to firms used for the 60... Service revenue for $ 600 but does not pay this bill until 2020 each.
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