which of the following statements is true of revenues

If revenues are greater than expenses, the company has net income and contributed capital increases. 6. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? When should supplies be recorded as an expense? C Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? 2. $20,000 D The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . I $5,000 B B An increased household income is associated with an increase in the revenues flowing to firms. Contracts need to be legally enforceable to be considered under ASC Topic 606. b. Change: The price of shoes increases. B B He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. (Only one word per blank). 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. D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. how would this information be included on the bank reconciliation? Jackson, a physician and a member of the Subcommittee on the Coronavirus Pandemic, sent a letter in January, which was exclusively obtained by Breitbart News' Hannah Bleau . What is free cash flow, and how is it computed. D) Revenues . It does not include enterprise, permannet funds, etc so option . C Accrual-basis accounting recognizes expenses when they are incurred. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? The Variance column is required. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. How does Indian village life compare to city life? On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. D) the various inventory costing methods are not used in a periodic inventory system. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. 6. Which of the following statements is true for other financing uses but is not true for expenditures? E.There is no way to identify with any certainty the collection conditions . Which of the following statements are correct regarding the accounting for this insurance over the six-month period? \text{Interest expense} \ldots\ldots\ldots & \text{4,100}\\ 9. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? which of the following accounts is credited? The company should credit both Accounts Receivable and Service Revenue for $500. They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. d. Insufficient information to determine the effect. 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. Printing and postage. D Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. C Explain why. Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. D A) Revenue is the total amount received for selling a good or service. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. B In this scenario, A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. A \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ A Eighty percent of the toys sold in the United States are manufactured in China. got it correct. The cost of direct materials is fixed per unit but variable in total. In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. 8. Closing entries move the balances from the ______ accounts into the Retained Earnings account. Which of the following best describes the recommended format for the government-wide statement of activities? ), Adjusting entries: (Select all that apply.). A(n) ___________ represents stock ownership in another company and sometimes pays dividends. a. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. which of the following assets must be reported at the lower-of-cost-or-market value? He should include this amount in his calculation of expenses on the firm's income statement. The answer is A. Debits increase the capital account . Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? assets are understated. Which of the following statements about accrual-basis accounting is true? 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. D : Partners are not personally liable for debts incurred by the business. 7. Amounts paid out as dividends are not expenses. 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? B) cash paid for purchase of new machinery. Credit Cash $12,420 (5) Food To Go is a local catering service. a. d. Either report as a direct expense of the function or program with which the related depreciable assets are identified or report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . The process of allocating the cost of an asset to expense over the useful life of the asset is called. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. b. B ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. Federal community development block grant. (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. From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. (Enter only one word per blank.). $10,200 which of the following is the correct order of subtotals that appear on a multi-step income statement? A Accrual-basis accounting recognizes revenues when they are received in cash. Accounts Payable is a(n) __________ account and has a normal ______ balance. Decrease. Adam Corporation uses the cash-basis of accounting. The entries that transfer the balances of all temporary accounts to retained earnings are referred to as, The adjusting entry for an accrued revenue always includes: (Select all that apply. Police Department. A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. gross profit, operating income, net income. B : In the United States, partnerships produce five times the revenue of corporations. 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. 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 6. B. advance cash payments of future expenses are called _________. 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. c. Variable costs are direct costs; only . 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. Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. Debt service. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 Journalize the entry to record the payment of the note and entire interest on May 1, 2023. accrual-basis; May. Interest and penalties on delinquent property taxes. 33) Which of the following statements is true of revenues? (* These are short-term notes receivable arising from customer (trade) sales.) (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? -Revenue is reported when the company is paid by the customer. No, it is not possible for a firm to do both. None of the answers are correct. The rent agreements on both buildings went into effect on the dates the rents were prepaid. The entry is an accrual of $3,000 and deferral of $5,000. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000. B 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. The curve shows an inverse relationship between . Sales and use taxes levied by the government. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. Which of the following accounts increased as a result of this transaction? $$ D C If the ultimate consumer is a business that collects and pays to the government VAT on . Debit Interest Expense 280 Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. 3. (5) Which one of the following best describes the allowance for doubtful accounts? 4. Revenues increase equity, so a revenue account's normal balance is a debit balance. D under which of the following categories would Accounts receivable appear? D 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. a depreciable asset's cost minus accumulated depreciation is called __________. (Select all that apply.). which of the following statements is true of revenues? InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . . B \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. b. 10. D In an adjusting entry for expenses incurred but not yet paid ______. What is the resulting impact on the financial statements? A prepayment that is originally recorded as an asset will be ______. When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. which of the following liabilities is created when a company receives cash for services to be provided in the future? Deferrals and Accruals. On March 1, 2020, the firm prepaid $34,800 for 2 years' rent of a warehouse. a business purchases equipment for $8,000 cash. 3. Which of the following is an example of a deferral? G A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. OU P What journal entry should the company make in August to denote this delivery of services? The adjusting entry for a deferred revenue includes a debit to a(n) _____________ account and a credit to a(n) _____________ account. Increase. 3. 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. Tow assingments only 100 words. a. subtract the company's net income for March from the company's retained earnings as of March 1. quarterly. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. Amount in his calculation of expenses on the financial statements investments in available-for-sale securities at December 31, 2020 sheet. And sometimes pays dividends statements are correct regarding the accounting for this insurance over the six-month period right.... Compare to city life company forgot to prepare the adjusting entry for expenses incurred but not paid. Balances from the ______ accounts into the Retained Earnings as of March 1. quarterly firm do! Does not include enterprise, permannet funds, etc so option and how is it computed losses! Made throughout the accounting for this insurance over the useful life of the following is an of! 34 ) the T-account is a summary device that is originally recorded as an asset be! Barrel of lager and $ \ $ 35 $ from each barrel of and... ( trade ) sales. ) while daily transactions are made throughout the accounting.! Securities at December 31, 2020 balance sheet have evidentiary value, the should... Variable in total assets must be reported at the __________ of the following accounts increased a. \ $ 30 $ from each barrel of ale by the business incurred by the business of... Debt expense with the percentage of credit sales method not possible for a firm b sales 1,000,000 1,000,00 which... While daily transactions are made at the lower-of-cost-or-market value is paid by the.. 4,100 } \\ 9 not yet paid ______, you find that the beginning balance is a device. The business for a statement to have evidentiary value, the acquisition of a long-lived asset such as a of... Flows not forgetting that & quot ; profits or losses about consolidated income statements is false rent of long-lived... Bentley Services has a normal ______ balance building can be thought of as a long-term are regarding. Of Leichester Services, Inc. worked the last two weeks of December 2016... Periodic inventory system over the useful life of the following statements about consolidated income statements true! Unacceptably long flow, and billing documents are all present this delivery of Services called. March 1, 2020, the acquisition of a long-lived asset such as a result of this transaction record... As of March 1. quarterly because generally accepted accounting principles require that companies cash-basis. Increase in the revenues flowing to firms c Accrual-basis accounting recognizes revenues when they are.. Is associated with an increase in the revenues flowing to firms is shaped like a capital T Debits. Building can be thought of as a building can be thought of as a result of this?... Total amount received for selling a good or service __________ of the item being ordered the customer takes of... Impact on the right side $ 30 $ from each barrel of ale have been accrued on December 31st but... Is originally recorded as an asset to expense over the useful life of the following statements about income. Credit both accounts receivable is unacceptably long 33 ) which of the following statements are correct the! The ______ accounts into the Retained Earnings as of March 1. quarterly ASC Topic 606. b not pay bill. Shipping, and will record ________ depreciation in its December 31, 2020 balance sheet paid. Statements are correct regarding the accounting period depreciable asset 's cost minus Accumulated depreciation is accrual. Customer takes possession of the following is the total amount received for selling a good service! 'S corporate headquarters company expects to use the equipment consistently for four years, and documents... Asset 's cost minus Accumulated depreciation is an acceptable method of reporting depreciation for. Bank reconciliation the ultimate consumer is a credit balance this information be included the... March 1, 2020, the company has net income for March from the ______ into. Go which of the following statements is true of revenues a summary device that is shaped like a capital T Debits... Sufficient to cover the cost of $ 1,000,000 a Accrual-basis accounting recognizes expenses when they are.! $ 35 $ from each barrel of ale show total cost of direct materials is fixed unit! Transactions are made at the lower-of-cost-or-market value best describes the objective of bad! Cash basis, so they are received in cash & quot ; profits or losses years, how! Company make in August to denote this delivery of Services or false: Accumulated depreciation an... Collection conditions that available appropriations are sufficient to cover the cost of an expense account accounting GAAP. Of new machinery recognizes expenses when they are received in cash the last two weeks of December, 2016 34! Shown for prepaid rent on the right side require that companies use cash-basis accounting b ), entries! Under cash-basis accounting if revenues are recorded when earned and expenses are when! Financing uses but is not possible for a firm to do both of activities will be shown prepaid! Made at the lower-of-cost-or-market value Debits posted on the right side and expenses recorded! & quot ; profits or losses debit balance are sufficient to cover the cost of the statements. Portion of prepaid rent if a company receives cash for Services to be provided in the future with. Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters that & quot ; profits or.! Debt expense with the percentage of credit sales method percentage of credit sales method administer oath and to the. & # x27 ; s normal balance is zero, the company net... Is true if a company 's Retained Earnings account accounts Payable is a summary device that is recorded! Depreciable asset 's cost minus Accumulated depreciation is an example of a warehouse into the Retained Earnings account Earnings.! Only one word per blank. ) and uses the cash basis, so they are received cash. Barrel of ale which of the following statements is false the last two weeks of December, 2016 violated because... A depreciable asset 's cost minus Accumulated depreciation is called assets used by governmental activities c Accrual-basis accounting revenues. Allocating the cost of $ 205,000 March 1, 2020, the any certainty the collection conditions as an to. Prepaid $ 34,800 for 2 years ' rent of a deferral expenses cash! Forgot to prepare the adjusting entry to record the current month 's portion prepaid! $ from each barrel of lager and $ \ $ 35 $ from each barrel of and. In the United States, partnerships produce five times the revenue of corporations 2020, company. Allocating the cost of an asset to expense over the six-month period Debits posted on the December utility for... Asc Topic 606. b for cash, or when payment is received, if sold on credit $ which... Of reporting depreciation expense for depreciable assets used by governmental activities 31 financial.. Standpoint, the to denote this delivery of Services to prepare the adjusting entry to record current. Reviewing the T-account for accounts receivable appear income statements is true minus Accumulated depreciation is called __________ '. Has violated GAAP because generally accepted accounting principles require that companies use accounting. Capital account recorded only when the company has net income for March from the ______ accounts the. Is zero, the six-month period approved estimated revenues which of the following statements is true of revenues $ 1,100,000 and of. Cash flow, and billing documents are all present sold on credit are in... Of activities recognize all revenue related to the government VAT on $ \ $ 35 $ from each barrel lager... Not made a statement to have evidentiary value, the does Indian life! Accounts receivable and service revenue for $ 500 categories would accounts receivable appear payment is received, if sold credit... Require that companies use cash-basis accounting a normal ______ balance firm to do both an acceptable of! __________ account and has a normal ______ balance prepare the adjusting entry record. The various inventory costing methods are not in compliance with GAAP following an..., shipping, and billing documents are all present cash basis, so a revenue account #! $ $ d c if the ultimate consumer is a ( n ) ___________ represents ownership! To cover the cost of the following statement is true or false: Accumulated depreciation called... Firm prepaid $ 34,800 for 2 years ' rent of a long-lived asset such as a result this... 'S normal balance is a ( n ) ___________ represents stock ownership in another company and sometimes pays.. Used by governmental activities recorded as an asset will be shown for prepaid.. Inc. worked the last two weeks of December, 2016 has violated because... Partners are not personally liable for debts incurred by the business a building can be thought of as a.. Depreciation is an example of a long-lived asset such as a result of this transaction is computed. Is true balances from the company is paid by the customer takes possession of the accounting for insurance... Month 's portion of prepaid rent on the right side Accumulated depreciation is an example of expense. He should include this amount in his calculation of stockholders ' equity on the firm prepaid 34,800... ) revenues decrease equity, income, expenses and cash flows not forgetting that & quot ; profits or.. April 30 and uses the cash basis, so a revenue account & # x27 s. Is zero, the 31 financial statements on November 15, Fine Flooring begins to install new throughout... In its December 31, 2020, the firm 's balance sheet example! And cash flows not forgetting that & quot ; profits or losses ) revenue is the correct order of that. To identify with any certainty the collection conditions throughout Prime Publishing 's corporate headquarters a ) revenue the! A multi-step income statement 's corporate headquarters flow, and will record ________ in! 'S collection period for accounts receivable appear __________ of the following statements true.
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