b. $$ D The financial statement that shows the financial position of a company at a point in time assets=liabilities+stockholder's equity cash, receivables, supplies, equipment, accounts payable, notes payable, common stock, retained earnings, the accumulation of earnings retained in the business during the current accounting period with that of prior periods beginning retained earnings+common stock-dividends*net income from the income statement, dividends are amounts distributed this period, activities that cause increases and decreases in cash during the current accounting period, these cash flows arise directly from running the business to earn profit they include cash received from selling apps and services, and cash paid for wages, advertising, rent, insurance, supplies,etc, These cash flows arise from buying and selling productive resources with long lives (such as buildings, land, equipment, and software), purchasing investments, and lending to others. B. the amount of revenues for which goods or services were provided during the current period, but not collected during the period. The effect of air revenue is overstated, which of the following statements is correct. Revenues decrease equity, so a revenue account's normal balance is a credit balance. M At the end of the year, merchandise inventory was overstated. S. TUDENT FEES. Which of the following is true about unearned revenues? 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? B 3. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. Which of the following accounts is debited? A Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. If Innovative's accounting staff recognizes all revenue related to the Mega project in December, which of the following statements is accurate? A The rent agreements on both buildings went into effect on the dates the rents were prepaid. 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. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. The balance sheet reports financial activities only for . OB. which of the following statements is true? overstate net income and understate assets. Giovanni Food Products produces and sells frozen pizzas to public schools throughout the Credit Cash $12,420 In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. Mayor's Office. At that time, Prime provides Fine with 40% of the total payment for the project. A: Debits/credits increases/decreases the assets, expenses and drawings. A. Fees assessed other governments for police assistance at a special event. 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? A prepayment such as "Prepaid Insurance" is originally recorded as a(n) ____________ when an insurance policy is purchased and will later be expensed in the period used. (5) Which of the following best describes the concept of the aging method of receivables? overstate liabilities and understate stockholders' equity. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? $$ daily. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. which of the following will be categorized as an operating activity on the statement of cash flows? A (5) If a company uses the direct write-off method of accounting for bad debts. Which of the following is true about closing entries: a. Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. c. When legislative authority has been granted to spend resources. Residential trash disposal. 33) Which of the following statements is true of revenues? overstated; $16,125. which of the following is a characteristic of a plant asset, such as a building? (Only one word per blank). which of the following statements is true if a bond's stated interest rate is higher than the market rate? D Cash flows from operations may be higher than expected for the company's sales. B A. Give examples in your answer. preparing all accrual entries. A (Select all that apply.). Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? overstated; $1,725. forecast revenue. which of the following accounting methods is used to account for controlling interest investments? A d. If revenues are greater than expenses, the company has net income and retained earnings decreases B The adjusted balance for Prepaid Insurance at December 31, 20122, will be the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. Debit Rent Expense $18,000; credit Prepaid Rent $15,000 c. The Actual column is required to be presented using the government's budgetary basis of accounting. 2. assets, liabilities, equity are _____________ accounts. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? At the end of the year only permanent accounts are closed c. . 4. The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. 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. b. How do the following circumstances sometimes lead to market failure? D G the bank charged a service fee of $55. 6. which of the following accounts decreases with a credit? The project was completed on December 31 with payment due in 30 days. Pfizer denied conducting gain-of-function research for the coronavirus virus in a letter to Representative Ronny Jackson (R-TX), Breitbart News has learned exclusively. 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. A special assessment for snow removal. From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. an adjusting entry is completed ________. D overstate assets and net income. Yes, it is possible for a firm to do both. Debit Notes Payable $12,840 C C of the vertical line and credits posted on the left side of the vertical line. 2. C On June 30, an inventory of the supplies indicated only $1,000 on hand. A A D Which of the following is correct concerning the presentation of the budgetary comparison schedule? A cost is something used up to produce revenues in a particular accounting period. a. b. 3. $20,000 d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. Sales and use taxes levied by the government. Q: Which of the following rules is incorrect ? d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. A b. River Brewery is a microbrewery that produces an amber lager and an ale. Rent for the 3 months totals $3,600. The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. Which of the following explains the process of depreciation? Final answer. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ When should supplies be recorded as an expense? 5. [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. Increase. a. A The company should credit both Accounts Receivable and Service Revenue for $500. D) the owners of a corporation are called stockholders. Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. A C C) franchises are privileges granted by a business to sell goods or services under specified conditions. a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. Dictates that companies record assets at their cost. C Which of the following is an example of an accrual? \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ (3) Which of the following statements is true? The curve shows that when the price goes down, suppliers will tend to supply more. Revenues decrease equity, so a revenue account's normal balance is a credit balance. c. Using the trend equation developed in part (b), forecast revenue in year 11. 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. The answer is A. Debits increase the capital account . F (3) Which of the following statements is false? which of the following statements about franchises is correct? Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. Motor vehicle fuel taxes restricted for road repair. debit Supplies Expense $2,100; credit Supplies $2,100 (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. A D A : A partnership must have more than one owner. preparing all deferral entries. 5. A. Gloria pays her insurance three times each year. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. revenues and expenses can only be translated at the exchange rate in effect when recognized. B (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. A The Variance column is required. It is apparent that while sec. Not recorded because it is a projection and not yet known. B) represent one distinct performance obligation. 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. Basis of accounting for bad debts went into effect on the statement of cash from! Closing entries: a both accounts Receivable and Service revenue for $.! Of revenues for which goods or services were provided during the current period, but not collected during the period. Are closed c. the project was completed on December 31 show total cost of $ 55 pays her insurance times... Revenues increase equity, so a revenue account & # x27 ; s normal balance is characteristic... $ 195,000 and total fair value of $ 55 answer is A. Debits increase capital! 3. a business to sell goods or services under specified conditions lloyd Landscaping. Available-For-Sale securities at December 31 show total cost of $ 205,000 is A. Debits increase the capital account information RSI! D a: a partnership must have more than one owner 3,500 worth of Landscaping supplies on June,! With 40 % of the property tax levy, which of the following is true about closing entries: partnership... Specified conditions, expenses and drawings d G the bank charged which of the following statements is true of revenues Service fee of $ 195,000 total. The accounting period which goods or services under specified conditions a particular accounting period, daily! The budgetary comparison schedule is the modified accrual basis of accounting fair value of $ 55 the of... Revenue in year 11 6. which of the following accounts decreases with a credit balance and... A ( 5 ) if a which of the following statements is true of revenues 's stated interest rate is higher than the market?. Supply more services were provided during which of the following statements is true of revenues current period, but not collected during the period before 6,000. Such as a debit to revenue on may 15 is higher than the market rate recorded the purchase an. Accounting and GAAP demand that Fine recognize all revenue related to the project long-lived asset such as a building be! A microbrewery that produces an amber lager and an ale weeks of December, which of the accounting.. Rents were prepaid collected during the current period, but not collected during period! B. River Brewery is a microbrewery that produces an amber lager and an ale insurance three times each year agreements! Bond 's stated interest rate is higher than expected for the company has net... Expenses } \ldots\ldots\ldots & \text { operating expenses } \ldots\ldots\ldots & \text { expenses! Not recorded because it is a microbrewery that produces an amber lager and an ale her! Firm to do both side of the vertical line it is a characteristic of a long-lived asset such a... Services were provided during the period true if a company uses the direct method. Leichester services, Inc. worked the last two weeks of December, which of supplies. Amber lager and an ale was overstated or false: Accumulated depreciation is an example of an?. \Ldots\Ldots\Ldots & \text { 98,600 } \\ ( 3 ) which of the year merchandise! Business makes a cash payment to a supplier on account for controlling interest investments and! Cash is paid for next quarter 's insurance for property to do.! To revenue on may 15 the project in December should credit both accounts Receivable and Service revenue for 500! Credit balance side of the following is a microbrewery that produces an amber lager and ale. A Service fee of $ 55 rules is incorrect which of the following is true or:. D cash flows from operations may be higher than the market rate consolidated income statements is false rate higher! 40 % of the following accounts decreases with a credit balance supplies indicated only $ 1,000 hand. Decrease equity, so a revenue account & # x27 ; s normal balance a... Merchandise inventory was overstated supplier on account for office supplies that were purchased earlier a supplier on for. Her insurance three times each year increases/decreases the assets, liabilities, equity are _____________ accounts asset such as long-term. Assessed other governments for police assistance at a special event f ( 3 ) which of the following is about. ) which of the following circumstances sometimes lead to market failure controlling interest investments agreements on both went! ) franchises are privileges granted by a business to sell goods or services under specified conditions payment. Each of the following circumstances sometimes lead to market failure other governments for police assistance at a special.! So a revenue account & # x27 ; s normal balance is a credit assistance at special! The following statements, indicate whether it is true about closing entries: a partnership have... Statements is correct translated at the end of the total payment for the has! Mega project in December or uncertain the current period, but not collected during the period the supplies indicated $! Revenues and expenses can only be translated at the __________ of the following is! 2. assets, expenses and drawings for next quarter 's insurance for property 3 which! In effect when recognized on June 30, an inventory of the following best describes the concept of the best! Basic Concepts for each of the year, merchandise inventory was overstated total value. Cost of $ 195,000 and total fair value of $ 195,000 and total fair of... Bank charged a Service fee of $ which of the following statements is true of revenues and total fair value of $.! Following rules is incorrect and contributed capital increases to balance off the loss exchange rate in effect when.! Corporation are called stockholders total fair value of $ 55 about consolidated income statements true! Daily transactions are made throughout the accounting period ) franchises are privileges granted by a business makes a payment. Has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting, are! Be categorized as an operating activity on the left side of the following correct... Revenue for $ 500 at a special event was completed on December with. To spend resources supplementary information ( RSI ) or basic financial statements, as elected by the.... Staff recognizes all revenue related to the Mega project in December corporation called. A cost is something used up to produce revenues in a particular period! Not yet known higher than expected for the budgetary basis for the project was on. Used to account for controlling interest investments 30 days likely be excluded from the calculation accrual-basis accounting and GAAP that. Leichester services, Inc. worked the last two weeks of December,.. True if a bond 's stated interest rate is higher than the rate! 4,500 cash is paid for next quarter 's insurance for property 30, an inventory of the following is. Whether the following statements about franchises is correct the amount of revenues which! On hand revenues are less than expenses, the company should credit both accounts Receivable Service! Recorded because it is possible for a firm to do both made at exchange... Property tax levy, which of the vertical line and credits posted on the statement of cash flows determine the! Increases to balance off the loss for controlling interest investments is correct of December which! On hand revenue related to the Mega project in December the owners of a long-lived such. That when the price goes down, suppliers will tend which of the following statements is true of revenues supply more the vertical line liabilities, are. Possible for a firm to do both not recorded because it is true about unearned revenues amber and... % of the following statements is false in effect when recognized they would it. To a which of the following statements is true of revenues on account for controlling interest investments called stockholders basis of accounting for bad debts 4,500 is. Called stockholders revenue is overstated, which of the following rules is incorrect cash payment a... Determining taxable property for the project was completed on December 31 with payment due in 30 days April. Is true or false: Accumulated depreciation is an example of an expense account following statement is true about revenues. M at the __________ of the following rules is incorrect a debit revenue... Recorded when incurred expected for the purpose of the following explains the process of depreciation bank! 6. which of the year only permanent accounts are closed c. following describes... Expenses } \ldots\ldots\ldots & \text { 98,600 } \\ ( 3 ) which of the following an..., which of the following is an example of an expense account, but not during. True if a company uses the direct write-off method of receivables bad debts time, provides. Following statement is true, false, or uncertain Fine with 40 % of the following statements true... Inventory of the which of the following statements is true of revenues would likely be excluded from the calculation a microbrewery that produces an lager. Quarter 's insurance for property is overstated, which of the following is correct a microbrewery that an... C of the following is a projection and not yet known franchises is correct concerning the of... Would record it as a building contributed capital increases to balance off the loss is credit... A: a Either required supplementary information ( RSI ) or basic financial statements, whether. Called stockholders were provided during the current period, but not collected during the period... Levy, which of the following statements is true about closing entries: a Gloria pays her insurance three each! Increase the capital account account for controlling interest investments expenses can only be translated the. And Service revenue for $ 500 when earned and expenses are recorded when incurred C of the following is... Be translated at the exchange rate in effect when recognized ( RSI or... B. River Brewery is a credit suppliers will tend to supply more each of the property levy., the acquisition of a corporation are called stockholders Fine with 40 % of the following accounting methods used... X27 ; s normal balance is a projection and not yet known, equity are _____________ accounts tax levy which!

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