Interest and penalties on delinquent property taxes. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. Debit Rent Expense $3,000; credit Prepaid Rent $3,000 What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? It was determined that $2,200 of the Prepaid Insurance had expired. Record Revenues that will be received in cash in a subsequent period. 133A does not permit the same. 2. Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. 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. QP Corp. has a beginning retained earnings balance of $16,000. A C C Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? which of the following is the correct order of subtotals that appear on a multi-step income statement? 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 is included in the cost of a plant asset? B : In the United States, partnerships produce five times the revenue of corporations. D Contracts need to be legally enforceable to be considered under ASC Topic 606. b. D A(n) ___________ represents stock ownership in another company and sometimes pays dividends. [8] \end{matrix} $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. 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. D) A firm's revenue will increase as its costs increase. b. This means that the ending balance of the account. 6. 3 Budgetary Account, BA 530 - Financial Management: Ch. A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. Which of the following statements regarding the statement of cash flows are correct? Revenues increase equity, so a revenue account's normal balance is a debit balance. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. c. The Actual column is required to be presented using the government's budgetary basis of accounting. C overstate liabilities and understate stockholders' equity. "2022 was a Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. On the first day of each year when the cash is received. Printing and postage. The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? C which of the following liabilities is created when a company receives cash for services to be provided in the future? Which of the following is a true statement? 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. 4. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. D B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Accident investigation. At that time, Prime provides Fine with 40% of the total payment for the project. 9. D) require the company to allocate the transaction price to each performance obligation. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. If a company using accrual-basis accounting wanted to overstate their income at the end of the fiscal year with increased shipments, the two accounts that would be most at risk are it is used in the operations of a business. A. A $2,200. debit Supplies $2,500; credit Supplies Expense $2,500. Unearned revenues are reported on the Income Statement. Debt service. The Variance column is required. Pakistan is the 33rd-largest country in the world . A The entry is an accrual of $3,000 in Wage and Salary Expense. 4. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. _____________ is defined as the "cost of borrowing money." A. Meadows Manufacturing has a March 15th year-end date. Deferrals and Accruals. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ Eighty percent of the toys sold in the United States are manufactured in China. An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. Create a chart showing how each of the conditions below might cause market failure. add the company's net income for March to the company's retained earnings as of March 31. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. Which of the following is an example of an accrual? 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. Then solve it using the simplex method. I, A508 Govt & Nonprofit Ch. A. A) on the balance sheet and income statement, respectively. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. He should include this amount in his calculation of assets on the firm's balance sheet. Record Revenues that were received in cash in an earlier period. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. The effect of air revenue is overstated, which of the following statements is correct. advance cash payments of future expenses are called _________. d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. cash-basis; May. A cost is something used up to produce revenues in a particular accounting period. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. overstated; $5,325. which of the following statements is true if a bond's stated interest rate is higher than the market rate? $10,200 $2,500 which of the following statements about franchises is correct? C A. Not recorded because it is a projection and not yet known. A worksheet facilitates the preparation of the statement. B Compute the following: (1) current ratio, (2) acid-test ratio, (3) days sales uncollected, (4) inventory turnover, (5) days sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders equity. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ OU a. Explain why. A. dividing operating income by (net) sales. E.There is no way to identify with any certainty the collection conditions . Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. c. Variable costs are direct costs; only . 7. c. Generally accepted accounting principles require companies to use cash-basis accounting. 5. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. Which of the following statements is TRUE of revenues? B 10. OB. The cost of direct materials is fixed per unit but variable in total. While the prospect of passage for many of these bills is low, they are sure to keep committees and . us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. What does the periodicity assumption state? What effect will this have on Public Work's appropriations available balance? which of the following accounts would appear in the balance sheet debit column of the worksheet? 6. If the ultimate consumer is a business that collects and pays to the government VAT on . Cash and Sales. On March 1, 2020, the firm prepaid $34,800 for 2 years' rent of a warehouse. Which of the following best identifies when an encumbrance is recorded? $$ 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. It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. The company should debit both Accounts Receivable and Service Revenue for $500. Imagine if you c 4. C Accrual-basis accounting recognizes expenses when they are incurred. Debit Notes Payable $12,420 Which of the following accounts is debited? 6. Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? A 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. (Select all that apply. restrictions on retained earnings are _________. Which explains this entry? annually. D) the various inventory costing methods are not used in a periodic inventory system. Answer is C Revenue increase equity, so a revenue account's normal ba . Comment on the appropriateness of a linear trend. In this situation, both The magazines will begin to be delivered in October 2019. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. c. The Actual column is required to be presented using the government's budgetary basis of accounting. debit Supplies $2,100; credit Supplies Expense $2,100 P. Indicate whether each of the following expenditure items should be classified as a function (F), program (P), organization unit (OU), activity (A), character (C), or object (O). C The company should credit both Accounts Receivable and Service Revenue for $500. Prepare the adjusting entry. Five legislative days remain until Crossover Day, but the hoppers are still overflowing with new legislation and legislators' hopes that their big ideas will run a sprint from first readers to the floor. Operating grants that can be used at the discretion of the city council. P CS Accounts Payable The following income statement and balance sheet information are available for two firms, Firm A and Firm B. liabilities are understated. Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? got it correct. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. debit Supplies $1,000; credit Supplies Expense $1,000 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. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? The sale of merchandise for cash on December 30. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. A d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. Payments by citizens for use of the city pool. Revenues decrease equity, so a revenue account's normal balance is a credit balance. When goods or services are received. 33) Which of the following statements is true of revenues? Credit Cash $12,420. 1. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. A) assets are something of value the business owns or controls. 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. (5) When is revenue from the sale of merchandise normally recognized? B) it is shown as a contra account related to accounts receivable. Donation of bonds to the city by a wealthy resident. What adjusting entry should be made on June 30? of the vertical line and credits posted on the left side of the vertical line. River Brewery is a microbrewery that produces an amber lager and an ale. An adjusted trial balance is created after Which of the following accounts is listed in a post closing trial balance? ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. S. TUDENT FEES. b. B Amounts received from issued stock are reported on the income statement. None of the answers are correct. 8. 4. Solve. b. What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 higher than it should be. Technology companies are particularly dependent on offshore revenue. a. c. Budgetary Fund Balance. D 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 . C They would record it as a credit to revenue and debit to cash on May 15. An adjusting entry for accrued expenses involves: (Select all that apply.). daily. b. Most PCs manufactured in China use microprocessor chips . Amounts received from issuing stock are revenues. 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. Andy should: (Select all that apply.). B LP Library fines. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. Contracts need to be in written form to be considered under ASC Topic 606. c. No consideration can be received before a contract exists. C Cash is paid for supplies to be used from January 1st to March 1st. debit Supplies Expense $2,500; credit Supplies $2,500 Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. Option a is true. D Fees assessed other governments for police assistance at a special event. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. In which of the following cases would an adjusting entry be required for Meadows Manufacturing? 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. liquidity is a measure of how ____________. B quarterly. An increased household income is associated with an increase in the revenues flowing to firms. principal amount plus interest due at maturity. (Select all that apply. 5. B) cash paid for purchase of new machinery. (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. B A. 1. A) Revenue is the total amount received for selling a good or service. David just finished compiling his firm's retained earnings statement for the month ended May 31. A. Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. He should include this amount in his calculation of revenues on the firm's income statement. net income is understated. 1. 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. D G A-1's adjusted trial balance would balance and its income statement would be correct, but its retained earnings statement would be incorrect and its balance sheet would not balance. D Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. which of the following statements is true? At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. A three-month insurance policy is purchased on December 6th. which of the following statements is true of revenues? A. Record Wage Expense that is incurred and paid in the same period. accrual-basis; May. What should he do with the figure he calculates at the bottom of this statement? A A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. Amounts paid out as dividends are not expenses. An accrual results when ____________ and a deferral results when A debt that a business owes is called __________. D Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. Norbert Inc. delivered goods and services during December. A The process of allocating the cost of an asset to expense over the useful life of the asset is called. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. M (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. C 8. 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. a. Appropriations. Which two accounts would be most at risk? Question 33 Which of the following is a true statement? Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. (Enter one word per blank.). The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. Conceptually, when should Food To Go recognize revenue from its catering service? Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? 5. 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. $$ Transcribed image text: Which of the following statements is true? Salaries and Wages Expense and Salaries and Wages Payable. How do temporary accounts differ from permanent accounts? Accounts Payable is a(n) __________ account and has a normal ______ balance. G d. If revenues are greater than expenses, the company has net income and retained earnings decreases If revenues are greater than expenses, the company has net income and contributed capital increases. Which of the following statements is true of revenues? A Expert Answer. 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. which of the following accounts is credited? The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. 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? Mayor's Office. If an adjusting entry's credit is to a liability account, then the debit must be to ______. What is a single subject research methodology in behavioral sciences? A $20,000 In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in Income from space rented to a not-for-profit organization. If dividends for the year were $1,800, determine the ending retained earnings balance for the year. a. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. Fill in your Name and Click on the Next button to start Billing mock Test B Sales and use taxes levied by the government. C)No net effect to the accounting equation. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ O A. This would also be apparent from section 132(4). F 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. 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 . The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. c. Expenses minus program revenues equals net (expense) revenue. $20,000 a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. understated; $5,325. Which of the following statements is true for other financing uses but is not true for expenditures? D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. Rent for the 3 months totals $3,600. Supplies ordered by the Public Works function of the General Fund were received at an actual price that was less than the estimated price listed on the purchase order. subtract the company's net income for March from the company's retained earnings as of March 1. Net (expense) revenue plus general revenues equals change in net position. Gift for the purchase of new playground equipment. which of the following is an example of debt securities? A)The company has issued $60,000 of common stock. D) the owners of a corporation are called stockholders. Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). \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}\\ But increased competition has slowed their growth rate in the past few years. (Enter one word per blank.). If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? **Required** Tow assingments only 100 words. Initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded as a(n) __________ in the period the benefit expires. (5) When should the net method be used to record sales revenue? a. When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. 8. 2- Which of the following causes a . Both C and O Expert Answer. c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 Which of the following is an adjusting entry that should be made by the company? A. Which of the following is true about unearned revenues? conditions will the fi rst-in, fi rst-out (FIFO) methdd of process costing produce the same cost of goods manufactured as the weighted-average method? Explain your reasoning. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? A The entry is an accrual of $3,000 and deferral of $5,000. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. Which financial statement would report all of the following information: beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings? Which of the following statements is true of revenues? A overstated; $1,725. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . (3) Which of the following statements is false? C At the end of the year only permanent accounts are closed c. . It does not include enterprise, permannet funds, etc so option . (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . 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. Fund, function or program, organization unit, activity, character, and object. 33) Which of the following statements is true of revenues? They would record it as a credit to revenue and debit to cash on April 30. B Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. C C) The terms "revenue" and "profit" can be used interchangeably. B A. B Gold Dome Report - Legislative Day 22. ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. C) quickly an asset may be converted into cash. B Accrual-basis accounting follows the fiscal year assumption. : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . 7. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. Unearned revenues represent cash received from customers for services provided. A. A It is apparent that while sec. 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. A cash-basis; April. C changing the method of valuing inventory ignores the principle of _________. A. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? Round to one decimal place; for part 6, round to two decimals. Service Revenue a. Construct a time series plot. which of the following describes the environment in internal control? ), Adjusting entries: (Select all that apply.). $$ Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. 3. preparing all deferral entries. If the annual premium is $924, find the amounts of the three payments. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. D C) Revenues increase equity, so a revenue account's normal balance is a debit balance. March 31 falls on a Tuesday for the current year. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. C.More tax revenue is raised if a tax is collected from both consumers and producers. Public Safety. 10. Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. A classified balance sheet shows subtotals for current ____________ and current ___________. Prepaid Rent was debited for the full amount. C
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