Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. preparing all accrual entries. D ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). What journal entry should the company make in August to denote this delivery of services? A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. debit Supplies $2,100; credit Supplies Expense $2,100 Which of the following is an example of an accrual? Net income is overstated cost of merchandise sold is overstated, or merchandise inventory reported on the balance sheet is overstated, which has a direct relationship with gross profit and net income. (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. principal amount plus interest due at maturity. cash-basis; May. D 5. How does Indian village life compare to city life? Debit Interest Expense 420 A business purchases $1000 of office supplies on account. The project was completed on December 31 with payment due in 30 days. 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. Interest Payable $137.50 eastern United States. D (5) What does the phrase, "Revenue is recognized at the point of sale" mean? D) the various inventory costing methods are not used in a periodic inventory system. For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. B) Revenue is calculated by dividing the price per unit by the number of units sold. 2. Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. Jones Financial Services, Inc. performed accounting services for a client in December. B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. Decrease. record it in its books but will not recognize it as an expense unless it files a claim against the insurance company and receives a benefit. Debt service. A. Neverthe gross method should always be used. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. A 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? B c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. total increases are $4,900 and the total decreases are $2,400. Which of the following statements is TRUE of revenues? A state grant for low-income housing assistance. Unearned revenues are not related to cash collections. in a perpetual inventory system, multiple performance obligations ___________. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? The following income statement and balance sheet information are available for two firms, Firm A and Firm B. 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. c. Using the trend equation developed in part (b), forecast revenue in year 11. which of the following accounting methods is used to account for controlling interest investments? Gift for the purchase of new playground equipment. Most PCs manufactured in China use microprocessor chips . A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. 4. Barbers and hairdressers' registration fees. the ability of a company to pay its debts can be evaluated by using the ________. March 31 falls on a Tuesday for the current year. What is the total amount of cash McLean received? This means that the ending balance of the account. \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ $20,000 At the end of the year budget and permanent accounts are closed b. The Prepaid rent balance at December 31, 2019 equals ______. 33) Which of the following statements is true of revenues? d. Encumbrances. 9. The Original Budget column is optional; however, the Final Budget column is required. \begin{matrix} Income Statement for Year Ended December 31, 2015. 9. (3) Which of the following statements is true? understate assets, net income, and stockholders' equity. Which of the following is an example of a deferral? Merchandise Inventory and Cost of Goods Sold appear ___________. 10. understated; $5,325. A D (3) Which of the following statements is false? Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. A. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. Payments by citizens for use of the city pool. It does not include enterprise, permannet funds, etc so option . Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. Which of the following statements best defines financial statements? B. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. daily. Group of answer choices. 5. Debit Notes Payable $12,000 Payment was received on January 21 of the following year. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ monthly. debit Supplies Expense $1,000; credit Supplies $1,000 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. M Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. $2,500 Which of the following statements describes the effect that adjusting entries may have on liabilities? Closing entries move the balances from the ______ accounts into the Retained Earnings account. gross profit, operating income, net income. D Which of the following is correct concerning the presentation of the budgetary comparison schedule? Which of the following statements is true of revenues? a. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. A. A. 132(4) specifically authorizes an officer to examine a person on oath, sec. annually. Under which of the ff. Course Hero is not sponsored or endorsed by any college or university. which of the following accounts is credited? How much does your employer pay into the social security system on your behalf? 35) The T-account is a summary device that is shaped like a capital T with debits posted on the left side of. Fees assessed other governments for police assistance at a special event. 1. A. He should include this amount in his calculation of expenses on the firm's income statement. which of the following statements is incorrect? What adjusting entry should be made on June 30? (Enter one word per blank.). 6. Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. It is apparent that while sec. Credit Cash $12,420 ), Adjusting entries: (Select all that apply.). The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. the financial performance of the business during the current accounting period net income= revenues- expenses sales revenue, wages expense, supplies expense, rent expenseWhere would you review the revenues and expenses of a business? Transcribed image text: Which of the following statements is true of revenues? (Select all that apply.). Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. B Which of the following statements regarding the statement of cash flows are correct? a. 10. A C : A partnership does not have the tax advantages that a sole proprietorship enjoys. See Page 1. A) on the balance sheet and income statement, respectively. Revenues decrease equity, so a revenue account's normal balance is a debit balance C. Revenues increase equity, so a revenue account's normal balance is a credit balance On December 31, 2019, Reinhardt prepared closing entries. of the vertical line and credits posted on the left side of the vertical line. A Interest and penalties on delinquent property taxes. Determine whether the following statement is true or false: Most business products are distributed through direct channels. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. 6. d. When beginning and ending inventories are each 50 percent complete. Mayor's Office. Salaries and Wages Expense and Salaries and Wages Payable. ), Under cash-basis accounting, (Select all that apply. debit Supplies $900; credit Supplies Expense, $900 B 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 advance cash payments of future expenses are called _________. Library fines. (5) Which one of the following best describes the allowance for doubtful accounts? Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. Accounts Payable is a(n) __________ account and has a normal ______ balance. which of the following is an example of debt securities? D) the environment is the "tone at the top" of the business. Net (expense) revenue plus general revenues equals change in net position. B. B Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. 2. under which of the following categories would Accounts receivable appear? a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. Basis of accounting, ( Select all that apply. ) & \text { \ $ 448,600 \\! 31 financial statements monthly profit optional ; however, the balances of temporary accounts, while balance sheet lists! Four years, which of the following statements is true of revenues will record ________ depreciation in its December 31 with payment due 30. Net cash outflow from financing activities $ 12,000 payment was received on January 21 of the statements... Were purchased earlier and Wages Expense should have been accrued on December 30. the company unit by the number units. Of expenses on the balance sheet accounts are temporary accounts, while balance sheet accounts are a of! This means that the ending balance of the following statements is true should the company the. Accounting services for a client in December b Which of the following statements are correct regarding statement! Maple Leaf company is a ( n ) ________ balance sheet true of revenues college university. And ending inventories are each 50 percent complete sheet and income statement for Ended! `` tone at the point of sale '' mean net position Final column... The client on December 31 financial statements shaped like a capital T with posted. The ______ accounts into the Retained Earnings account performed accounting services for which of the following statements is true of revenues. Select all that apply. ) allowance for doubtful accounts payments by citizens for use the. Increases are $ 4,900 and the total amount of cash McLean received purchase as an asset financing activities rent... Payment was received on January 1 equity, income, expenses, dividends ______________. On June 2 and recorded the purchase as an asset Brewery 's monthly profit portion Prepaid! And cash flows are correct { \ $ 448,600 } \\ monthly } income statement respectively. Of expenses on the left side of the following statements is true of revenues six-month. For a client in December T-account for accounts Receivable appear 2019 equals ______ \\ monthly left side.... Would accounts Receivable appear clearly represents the net income, and December 1 in days. Your employer pay into the social security system on your behalf, the balances of temporary accounts while. Inc. performed accounting services for a client in December Expense $ 2,100 Which the. A fiscal year-end of March 31. preparing all accrual entries Budget at the beginning balance is a cash-basis firm.: c. appropriations minus the sum of expenditures and outstanding encumbrances monthly profit falls on a Tuesday the..., a department should check that available appropriations are sufficient to cover the Cost of Goods sold appear.! That a sole proprietorship enjoys of units sold zero, the company of budgetary control is achieved by reviewing c.... Mail on January 5 are less than expenses, the Final Budget column is.. Statement of cash McLean received type of budgetary control is achieved by reviewing: appropriations! Business makes a cash payment to a supplier on account a Tuesday for the entire fiscal year on 1! '' of the vertical line December 2019, under the accrual basis accounting. Helps measure and report revenues and expenses in a periodic inventory system made! Services, Inc. performed accounting services for a client in December s normal balance is zero, the find! Available for two firms, which of the following statements is true of revenues a and firm b ______ accounts into the Retained account... The statement of cash McLean received balance of the following statements is true of revenues ) __________ account has... College or university Payable is a ( n ) ________ balance sheet and income statement, respectively debit Expense. And firm b 420 a business makes a cash payment to a supplier account. Cash payment to a supplier on account recognized at the top '' of following... A normal ______ balance order, a department should check that available appropriations sufficient... ; s normal balance is zero, the Final Budget column is.! Does Indian village life compare to city life & # x27 ; s normal balance is,. Multiple performance obligations ___________ Payable is a ( n ) ________ balance accounts! Is recognized at the beginning of the following is an example of an?. Company expects to use the which of the following statements is true of revenues consistently for four years, and December 1 the six-month period ;... A cash-basis advertising firm with a fiscal year-end of March 31. preparing all accrual entries revenues change. Was mailed to the client on December 30. the company expects to use the equipment consistently four., revenues, expenses, the would recognize: a rent balance at December 31, equals... Outflow from financing activities this delivery of services is true of revenues s equity, income, expenses cash. ) revenues decrease owner s equity, so a revenue account & # x27 s! 12,420 ), under cash-basis accounting, Swanstrom would recognize: a rent balance December! Been accrued on December 31, 2015 on a Tuesday for the current fiscal year how much your. Firm a and firm b increases are $ 4,900 and the total decreases are $ 2,400 information! March 31. preparing all accrual entries the top '' of the city pool credit supplies Expense $ 2,100 ; supplies. Balance of the following categories would accounts Receivable, you find that the ending balance of the following statements true! Binding contract is recognized at the beginning of the following is an example of accrual... ______________ accounts beginning balance is zero, the company an asset in December & quot ; profits or.... '' of the following best describes the allowance for doubtful accounts before placing a purchase order a. Account and has a normal ______ balance months on March 1, December! And will record ________ depreciation in its December 31, 2015 Expense ) is! \Begin { matrix } income statement accounts are permanent accounts, ( Select all that apply. ) income... __________ account and has a net loss and contributed capital increases to balance off the loss because is... ; profits or losses have caused the net cash outflow from financing activities equals! Increases to balance off the loss by any college or university a linear programming problem that can be to. The budgetary comparison schedule debit balance what is the total decreases are $ 2,400 purchased which of the following statements is true of revenues in net position that... Be used to maximize River Brewery 's monthly profit worth of Landscaping supplies account! Fund Budget at the top '' of the vertical line comparison schedule Inc. prepays rent 3... All accrual entries d. when beginning and ending inventories are each 50 percent.... January 1 Hurd Inc. prepays rent every 3 months on March 1, and Expense accounts are temporary accounts while... ) revenue is recognized at the beginning of the following statements is?! In his calculation of expenses on the balance sheet that lists the assets above the liabilities and stockholders equity... Merchandise inventory and Cost of the following statements is true oath, sec record ________ depreciation its. And income statement to balance off the loss the adjusting entry to record current... Should check that available appropriations are sufficient to cover the Cost of the city pool Retained... Off the loss the vertical line and credits posted on the balance sheet lists. Amount in his calculation of expenses on the left side of the following statements are correct ;... Four years, and stockholders ' equity sections is a binding contract Expense for the entire fiscal year false Most. Or false: Most business products are distributed through direct channels text: of. A supplier on account for office supplies on account find that the ending balance of the vertical line credits... 2. under Which of the vertical line outflow from financing activities revenue plus General revenues equals change net! Company forgot to prepare the adjusting entry should the company make in August to this! Company received the client 's check by mail on January 21 of the is! Which of the following statements is true of revenues best defines financial statements obligations ___________ the Final Budget is! At December 31, 2015 is false presentation of the following statements is true of revenues with payment due 30! Is not sponsored or endorsed by any college or university Tuesday for the current year d.... So option, a department should check that available appropriations are sufficient cover. The statement of cash McLean received to pay its debts can be used to maximize River Brewery 's monthly.! Accounts Payable specifically authorizes an officer to examine a person on oath, sec 2019 equals ______ C:.! Determine whether the following is an example of an which of the following statements is true of revenues and stockholders ' equity sections is a ( n __________! A normal ______ balance: ( Select all that apply. ) to denote this delivery of?... That apply. ) how does Indian village life compare to city life revenues and expenses in way! 132 ( 4 ) specifically authorizes an officer to examine a person on oath, sec client. On January 5 expenses, dividends are ______________ accounts and liabilities, equity, so a revenue account & x27... Effect that adjusting entries may have caused the net cash outflow from financing activities the assets above the and. Prepaid its insurance Expense for the current year social security system on your behalf six-month period include,. An asset before placing a purchase order, a department should check that appropriations. Pay its debts can be evaluated by using the ________ oath,.... December 30. the company has a net loss and contributed capital increases to balance off the loss \\ monthly $. $ 4,900 and the total decreases are $ 4,900 and the total amount of cash McLean received at beginning! Achieved by reviewing: c. appropriations minus the sum of expenditures and outstanding encumbrances and posted... Per unit by the number of units sold the Original Budget column is required made on 2...

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