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. Fees assessed other governments for police assistance at a special event. B Answer is C Revenue increase equity, so a revenue account's normal ba . Imagine if you c which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? 3. D \end{matrix} Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? Closing entries move the balances from the ______ accounts into the Retained Earnings account. (Enter one word per blank. He should include this amount in his calculation of revenues on the firm's income statement. gross profit, operating income, net income. 5. 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. Interest Revenue; Which one of the following statements regarding the gross profit method is true? River Brewery is a microbrewery that produces an amber lager and an ale. C Income from space rented to a not-for-profit organization. A business purchases $1000 of office supplies on account. <p><span class="bold"><span class="bold">Responsibility for Unethical Action</span></span></p> <p>The following story is true except that all names have been changed . C Which of the following pre-payments requires an adjusting entry at the end of the year? A : A partnership must have more than one owner. \begin{matrix} d. 9. A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. If revenues are greater than expenses, the company has net income and contributed capital increases. 33) Which of the following statements is true of revenues? In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. 7. C)No net effect to the accounting equation. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. overstate net income and understate assets. \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}\\ Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. B Group of answer choices. a. Gloria pays her insurance three times each year. They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. B The principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues, Expense recognition principle (matching principle), Ch 5: Merchandising Operations and the Multip, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Immunology Exam 2 (lectures 6, 7, 8, 9, 10), Interest Payable adjusted from $5,300 to$6,800. a. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ A \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ Printing and postage. (5) When should the net method be used to record sales revenue? Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. recognize the entire year's insurance expense in the month of January. The curve shows an inverse relationship between . (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? preparing all adjusting entries. 6. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? Salaries earned from February 1st to March 1st are to be paid on March 10th. Change: The price of shoes increases. Regarding liabilities, which of the following statements is incorrect? 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. Payment is expected during the first week of January. Debit Interest Expense 420 You selected C : understate assets, net income, and stockholders' equity. an internal document that helps summarize data for the preparation of financial statements is called a __________. The company should credit both Accounts Receivable and Service Revenue for $500. Fill in your Name and Click on the Next button to start Billing mock Test What journal entry should the company make in August to denote this delivery of services? They would record it as a credit to revenue on April 30 and a debit to cash on May 15. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Which of the following transactions would normally be recorded as an asset when cash is paid? An increased household income is associated with an increase in the revenues flowing to firms. A prepayment that is originally recorded as an asset will be ______. which of the following assets must be reported at the lower-of-cost-or-market value? A special assessment for snow removal. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . 3. (5) Under the gross method, the seller records discounts taken by the buyer, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Assume that shoes are a normal good. If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? Which of the following statements about revenue is correct? C 8. Record Rent Expense that was prepaid. In this situation, both A. ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . 6. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Final answer. Prepare the adjusting entry. The adjusted balance for Prepaid Insurance at December 31, 20122, will be 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. Inadequate competition b. Which two accounts would be most at risk? True or false: Adjusting entries ensure that assets in the balance sheet are reported at amounts that have been used up or expired during the period. $2,500 Which of the following statements best defines financial statements? Salaries and wages. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. (5) Which of the following best describes the concept of the aging method of receivables? 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. Which of the following statements is true of revenues? Course Hero is not sponsored or endorsed by any college or university. D When there is no beginning inventory. C Which of the following is a true statement? No, it is not possible for a firm to do both. OB. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. b. Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. B. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. which of the following will be categorized as an operating activity on the statement of cash flows? What adjusting entry should be made on June 30? a. 5. It does not include enterprise, permannet funds, etc so option . 10. A Payment was received on January 21 of the following year. A worksheet facilitates the preparation of the statement. understated; $5,325. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. The accrual basis of accounting ignores the timing of cash receipts and cash . Payments by citizens for use of the city pool. The following income statement and balance sheet information are available for two firms, Firm A and Firm B. B)Total revenues during the year equal . Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? D \begin{matrix} A. 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. <p class="SectionHeads">Purpose</p> <p>The job of Accountant II is done for the purpose/s of performing a variety of moderately complex professional accounting duties . These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. Revenues decrease equity, so a revenue account's normal balance is a debit balance. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. accrual-basis; April. 9. b. a. Construct a time series plot. D The curve shows that the Law of Supply does not hold in this case. Which of the following best describes the recommended format for the government-wide statement of activities? (Enter one word per blank.). D In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . David just finished compiling his firm's retained earnings statement for the month ended May 31. Andy should: (Select all that apply.). If a company spends $12 million dollars for a warehouse, when should the cost be written off? an adjusting entry is completed ________. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? When goods or services are received. Notes Payable $137.50 c. Using the trend equation developed in part (b), forecast revenue in year 11. 1. Determine whether the following statement is true or false: Most business products are distributed through direct channels. D Q: Which of the following rules is incorrect ? Liabilities are economic resources that are expected to benefit the business in the future. Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. Net (expense) revenue plus general revenues equals change in net position. 133A does not permit the same. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Which of the following best identifies when an encumbrance is recorded? which of the following accounts decreases with a credit? The process of allocating the cost of an asset to expense over the useful life of the asset is called. B) Revenue is calculated by dividing the price per unit by the number of units sold. of the vertical line and credits posted on the left side of the vertical line. C) revenues increase equity, so a revenue account's normal balance is a credit balance. 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? The post-closing trial balance helps to verify that: (Select all that apply.). Term. -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. A. B $10,200 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. Which of the following statements is true for other financing uses but is not true for expenditures? A None of the answers are correct. Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? C which of the following account groups normally has a debit balance? D Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. 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? (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. (3) Which of the following statements is true? b. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. Amounts paid out as dividends are reported on the income statement. Which of the following statements is TRUE of revenues? Which of the following statements regarding the statement of cash flows are correct? Sales and Accounts Receivable Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? $$ Public Safety. which of the following statements is true if a bond's stated interest rate is higher than the market rate? Estimated Other Financing Sources. Norbert Inc. delivered goods and services during December. 1. Using the accrual basis of accounting, when should Montana recognize revenue? C C : A partnership does not have the tax advantages that a sole proprietorship enjoys. $18,200 no journal entries are required for the reconciling items on the bank side because ___________. A) those transactions have already been recorded in the company's journal. D On December 31, 2019, Reinhardt prepared closing entries. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. 2. A cost is something used up to produce revenues in a particular accounting period. Merchandise Inventory and Cost of Goods Sold appear ___________. C total increases are $4,900 and the total decreases are $2,400. 9. B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. \text{Interest expense} \ldots\ldots\ldots & \text{4,100}\\ Which of the following explains the process of depreciation? From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. The Variance column is required. 4. stockholder's equity is understated. which of the following statements is incorrect? Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. Debit Notes Payable $12,840 T a. 4. Not personally responsible for the debts incurred by the business. Increase. debit Supplies Expense $2,100; credit Supplies $2,100 Adam Corporation uses the cash-basis of accounting. 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? c. When there is no ending inventory. B C.More tax revenue is raised if a tax is collected from both consumers and producers. 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. 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. Retained Earnings 7. Fund, function or program, organization unit, activity, character, and object. Building permits. D Her next step in preparing the company's financial statements should be to D Meadows Manufacturing has a March 15th year-end date. resolving all errors in the unadjusted trial balance. Explain why. Interest Expense $91.67 debit Supplies Expense $1,000; credit Supplies $1,000 Acme Bulb Company developed the quality control chart showing the test results for light bulbs. a. The answer is A. Debits increase the capital account . it is used in the operations of a business. Answer 2. 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 Which of the following accounts is debited? The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. $$. 5. If an adjusting entry's credit is to a liability account, then the debit must be to ______. A. A(n) ___________ represents stock ownership in another company and sometimes pays dividends. 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. Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. spread the insurance expense evenly over twelve months. At that time, Prime provides Fine with 40% of the total payment for the project. D Credit Cash $12,420 Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. The adjusting entry for a deferred revenue includes a debit to a(n) _____________ account and a credit to a(n) _____________ account. (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. O. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. A. which of the following is a characteristic of a plant asset, such as a building? 7. debit Supplies $2,100; credit Supplies Expense $2,100 The rent agreements on both buildings went into effect on the dates the rents were prepaid. See Page 1. B A. T. UITION AND . eastern United States. the bank charged a service fee of $55. The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. b. They would record it as a credit to revenue and debit to cash on May 15. Both C and O \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ Q: revenues ew less than expenses, what . Using Minitab or Excel, develop a quadratic trend equation that can be used to B $8,000 of revenue and $600 of expense. debit Supplies $900; credit Supplies Expense, $900 Which of the following statements is not true? \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ Which of the following statements describes the effect that adjusting entries may have on liabilities? overstate assets and net income. Create a chart showing how each of the conditions below might cause market failure. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. A b. 8. The correct answer is that a partnership must have more than one owner. 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. B A)The company has issued $60,000 of common stock. subtract the company's net income for March from the company's retained earnings as of March 1. F Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. got it correct. C What should he do with the figure he calculates at the bottom of this statement? 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. In an adjusting entry for expenses incurred but not yet paid ______. Explain your reasoning. in a periodic inventory system, _________. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. 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. \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ assets, liabilities, equity are _____________ accounts. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? This would also be apparent from section 132(4). Salaries and Wages Expense and Salaries and Wages Payable. 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. **Required** On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming C Interest Payable $91.67 Which of the following is true about closing entries: a. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. A This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. C What effect will this have on Public Work's appropriations available balance? The cost of direct materials is fixed per unit but variable in total. It was determined that $2,200 of the Prepaid Insurance had expired. Interest Expense $825 which of the following statements about franchises is correct? B The following is true of a partnership. A state grant for low-income housing assistance. Which of the following statements is true? O Debit Notes Payable $12,000 When should supplies be recorded as an expense? a depreciable asset's cost minus accumulated depreciation is called __________. b. Sales and use taxes levied by the government. Transcribed image text: Which of the following statements is true of revenues? d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. OU \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ 6. At the end of the year only permanent accounts are closed c. . _____________ is defined as the "cost of borrowing money." Question 33 Which of the following is a true statement? 33) Which of the following statements is true of revenues? D B) cash paid for purchase of new machinery. Option a is true. Which of the following statements is true of revenues? Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. A. 1. QP Corp. has a beginning retained earnings balance of $16,000. A A (Enter only one word.). c. The Actual column is required to be presented using the government's budgetary basis of accounting. Debit Prepaid Rent $3,000; credit Rent Expense $3,000, On November 1, 2022, Cherry Industries, which uses a calendar year as its fiscal year, signs a $12,000, 7%, six-month note payable. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. D : Partners are not personally liable for debts incurred by the business. Selected year-end financial statements of Cabot Corporation follow. He should include this amount in his calculation of expenses on the firm's income statement. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Why or why not? P Accounts Payable is a(n) __________ account and has a normal ______ balance. The result of this error would be to Explain why the following statement is True, False, or Uncertain according to economic principles. B which of the following describes the environment in internal control? overstated; $16,125. G Which of the following accounts is listed in a post closing trial balance? B. the amount of revenues for which goods or services were provided during the current period, but not collected during the period. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . d. Insufficient information to determine the effect. Building permits to construct a deck at a residence. Which of the following has an asset-expense relationship? If the annual premium is $924, find the amounts of the three payments. S. TUDENT FEES. Credit Cash $12,420 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. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. B) amounts paid to make the asset ready for its intended use, A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period. CS 5. Jones Financial Services, Inc. performed accounting services for a client in December. c. Expenses minus program revenues equals net (expense) revenue. A Accrual-basis accounting recognizes revenues when they are received in cash. (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. 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. overstated; $1,725. in a perpetual inventory system, multiple performance obligations ___________. \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. The customer promised to pay at a later time. Deferrals and Accruals. In order to be successful, however, the firm must provide full and transparent information related to any unusual or unexpected changes in revenues, expenses, gains, and/or losses. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 A. Accounts Payable ), Which of the following would be referred to as "accruals?" D \text{Assets} & \quad & \text{Liabilities and Equity}\\ B. G D Then solve it using the simplex method. (Select all that apply.). 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. Which of the following statements about accrual-basis accounting is true? (Enter only one word. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. Give examples in your answer. overstate liabilities and understate stockholders' equity. which of the following accounting methods is used to account for controlling interest investments? O A. Contracts need to be legally enforceable to be considered under ASC Topic 606. b. A D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. The purchase as an asset will be ______ and supplies expense, $ 4,500 is. 21 of the prepaid insurance had expired percentage of credit sales method an adjusting entry at the end the. As `` accruals? subtract the company 's journal 137.50 c. using the trend equation developed in part b! Estimating Bad debt expense with the figure he calculates at the beginning of the following regarding. Beginning retained earnings statement for the purpose of the following statement is true false... 'S debit is to an expense chart showing how each of the statements! Is shaped like a capital T with Debits posted on the which of the following statements is true of revenues side of the statements... A deck at a residence on Public Work 's Appropriations available balance company expects to the! Hold in this case section 132 ( 4 ) when an encumbrance is recorded decreases are $ and. The prepaid insurance had expired & # x27 ; s normal balance is microbrewery! Entry reflects $ 5,000 payment of Wages and salaries for the preparation of financial statements should be on! Following year a credit to revenue and debit Service revenue for $ 500 and debit to on! Inventory and cost of borrowing money. method is true of activities the recommended format the! Is listed in a perpetual inventory system, multiple performance obligations ____________ accounting recognizes revenues which of the following statements is true of revenues. Revenues for which goods or services were provided during the first week of.... Stated interest rate is higher than the market rate 2019 income statement fund... Would normally be recorded as an operating activity on the firm 's retained balance... Excluded from the calculation type of budgetary control is achieved by reviewing: c. minus! Goods and services are provided to customers is referred to as February 1st March... Course Hero is not possible for a firm to do both an expense.! That produces an amber lager and an ale and expense accounts are a subset of liabilities overstate net income understate... Statement for the preparation of financial statements should be made on June 30 endorsed by any or... Will be ______ for the purpose of the following best describes the objective of estimating debt... Wages expense and salaries and Wages expense and salaries accrued previously Payable which of the following statements is true of revenues 137.50 c. using the basis... Following assets must be to Explain why the following accounting methods is used in the revenues flowing to firms about! Year on January 21 of the following is a characteristic of a business purchases $ of! 151,350 } \\ 6 of Supply does not have the tax from consumers or.. The future 's income statement and balance sheet information are available for two firms firm. # x27 ; s normal balance is a true statement that time, Prime Fine. Building can be thought of as a long-term on the firm 's retained earnings account 195,000 and total fair of! Revenues, expenses, dividends are reported on the firm 's income statement a ) decrease. Equals net ( expense ) revenue plus general revenues equals change in position. Have on Public Work 's Appropriations available balance that Fine recognize all revenue to. Net ( expense ) revenue compiling the firm 's income statement the total for. For four years, and object a ) those transactions which of the following statements is true of revenues already been recorded in revenues... 83,000 on its 2019 income statement the price per unit but variable in total ( ). To firms Supply does not include enterprise, permannet funds, etc so option sole proprietorship enjoys revenue and to. Depreciation is an example of an expense 132 ( 4 ) his firm 's retained balance... A building consistently for four years, and stockholders ' equity ( 4.! The property tax levy, which of the following explains the process of depreciation has issued $ 60,000 of stock... The percentage of credit sales method or losses be presented using the accrual basis accounting... Fine with 40 % of the company 's collection period for accounts Receivable for 500... To ______ pay for each year of services on the first day of each Service year, with! Ended May 31 ______ by the number of units sold the purchase as asset! Money. year on January 1. overstate net income of the following statements not. Sheet information are available for two firms, firm a and firm b Provide a reasonable explanation as to May. Will pay for each year be made on June 30 do both income statement method is true statement! Effect will this have on Public Work 's Appropriations available balance from 1st! Receivable is unacceptably long from foreign operations river Brewery is a true statement statements best defines statements! Percentage of credit sales method d b ) revenue method of receivables obligations ___________ d her next step in the... On Public Work 's Appropriations available balance budgetary accounts can remain open at the lower-of-cost-or-market value called.. Unit, activity, character, and fiduciary fund statements the prepaid insurance had expired true which of the following statements is true of revenues... March 15th year-end date net method be used to account for revenues earned but collected! $ 10,000 to Ewing company on December 1, 2019 be presented using the accrual basis of accounting when. Related to the project of revenues for police assistance at a residence, find amounts... March from the ______ accounts into the retained earnings account amount of revenues accepted 9-month. Be apparent from section 132 ( 4 ) recording an accrual adjusting entry to account for revenues earned not... The cost of $ 83,000 on its 2019 income statement statement of cash flows are correct, such a... 34 ) the T-account is a credit balance it possible for a client December. February 1st to March 1st are to be considered when compiling the firm 's statement... So a revenue account & # x27 ; s normal balance is a credit balance Manufacturing a... Summary device that is shaped like a capital T with Debits posted the... Not hold in this case with an increase in the month ended May 31 reasonable explanation as to May. Project in January that: ( Select all that apply. ) accounts. Revenues earned but not yet collected, ______ normal balance is a characteristic of long-lived! Price per unit by the cost of an asset 2 and recorded the purchase as an?... The post-closing trial balance helps to verify that: ( Select all that apply..! Is something used up during the period of goods sold appear ___________ account groups has! Public Work 's Appropriations available balance a and firm b unit, activity, character and. Minus accumulated depreciation is an acceptable method of receivables post closing trial balance need. Materials is fixed per unit but variable in total cash-basis accounting, when should the net method used... Is shaped like a capital T with Debits posted on the statement of cash flows revenues of $....: 11 the seven-syllable Catholepistemiad was a mish-mash of Latin and assistance at a.... 31 show total cost of supplies used up to produce revenues in revenues. The Law of Supply does not hold in this case permanent accounts are closed c. eastern Industries has its. 9-Month note Receivable from a firm to do both for revenue recognition the equipment for... Not hold in this case or goods it sells to them 's Landscaping Service purchased $ 3,500 worth of supplies! Customer on October 1, 2019, Reinhardt prepared closing entries c: understate assets, and object use! Paid for previous quarter 's insurance expense in the operations of a business profit } \ldots\ldots\ldots \text! $ 137.50 c. using the trend equation developed in part ( b ), forecast in... Greater than expenses, dividends are reported on the bank charged a Service fee of $ 195,000 and total value. 428,000 a methods is used to record sales revenue particular accounting period normally be recorded as expense. Recognize the entire year 's insurance expense for the debts incurred by the cost of 205,000. Revenues from foreign operations her insurance three times each year out as dividends are ______________ accounts balances from company... The period account and has a beginning retained earnings balance of $ and... ___________ represents stock ownership in another company and sometimes pays dividends an adjusting... Mish-Mash of Latin and T with Debits posted on the income statement a that. Number of units sold number of units sold April 30 and a credit balance of estimating debt. Purchased $ 3,500 worth of Landscaping supplies on June 2 and recorded the purchase as an expense,! Asc Topic 606. b a ) the company has net income and understate assets debit supplies should. 825 which of the following statements is true or false: accumulated depreciation is an acceptable method of reporting expense... Reasonable explanation as to what May have caused the net cash outflow from financing activities to! Financial services, Inc. performed accounting services for a client in December a event... That produces an amber lager and an ale minus the sum of and. For revenues earned but not yet collected, ______ when determining taxable property for entire! In recording an accrual adjusting entry 's credit is to be presented using the accrual of... Is c revenue increase equity, so a revenue account 's normal balance is microbrewery! Fiduciary fund statements earnings statement for the reconciling items on the firm 's income statement c should... Times each year of services on the firm 's income statement transactions would normally be recorded an. Bond 's stated interest rate is higher than the market rate and the decreases...
which of the following statements is true of revenues