which of the following statements is true of revenues

monthly. A Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. F under which of the following categories would Accounts receivable appear? A 6. C 5. 7. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. A) those transactions have already been recorded in the company's journal. C Decrease. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ Fill in your Name and Click on the Next button to start Billing mock Test 3. 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. $5,000 2. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. 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. Federal grants restricted for highway construction. Amounts paid out as dividends are reported on the income statement. Which of the following accounts is listed in a post closing trial balance? A -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. Salaries and wages. 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? 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. A: Debits/credits increases/decreases the assets, expenses and drawings. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. Answer 2. D D $0. 10. Debit Notes Payable $12,000 revenues and expenses can only be translated at the exchange rate in effect when recognized. overstated; $5,325. D What adjusting entry should be made on June 30? (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. Which of the following statements is true of revenues? On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. G which of the following will be categorized as an investing activity on the statement of cash flows? spread the insurance expense evenly over twelve months. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ Interest and penalties on delinquent property taxes. In addition, Reinhardt paid $4,000 of dividends during 2019. b. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. 7. On December 31, 2019, Reinhardt prepared closing entries. A The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. D B)Decrease assets and decrease liabilities. A advance cash payments of future expenses are called _________. On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. B If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets,$189,400; common stock, $90,000; and retained earnings,$22,748.) Solve. C Which of the following statements is true for other financing uses but is not true for expenditures? The accounts are adjusted after preparing the financial statements. Payments by citizens for use of the city pool. (5) If a company uses the direct write-off method of accounting for bad debts. 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. QP Corp. has a beginning retained earnings balance of $16,000. D The company should debit both Accounts Receivable and Service Revenue for $500. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . no journal entries are required for the reconciling items on the bank side because ___________. Tow assingments only 100 words. an adjusting entry is completed ________. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. B B) cash paid for purchase of new machinery. understated; $5,325. Debit Interest Expense 420 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. A. Neverthe gross method should always be used. B.More tax revenue is raised if a tax is collected from producers. Sales and Accounts Receivable. The entry reflects total wage and salary expense this period of $8,000. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. The curve shows a direct relationship between price and quantity supplied. B \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ 1. $20,000 D b. liquidity is a measure of how ____________. a. $1,200. not record the insurance expense but disclose it in the footnotes to financial statements. \end{matrix} \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. 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 The tuition and mandatory fees category includes all tuition and fees (net of refunds, bad debt estimates, and any discounts recognized) assessed for educational purposes. product has been delivered after $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. Why or why not? A. preparing all deferral entries. 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. (Enter one word per blank.). For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. 24. B The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law.It is an agency of the Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the . Unearned revenues are reported on the Income Statement. B Final answer. 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. Which of the following statements regarding the statement of cash flows are correct? B Which of the following is an example of a deferral? 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. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? (Enter one word per blank). 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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. a. Construct a time series plot. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. . 1. Which of the following is true of assets? 5. How much does your employer pay into the social security system on your behalf? Technology companies are particularly dependent on offshore revenue. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. A. (3) Which transaction would require adjustment at December 31? An increased household income is associated with an increase in the revenues flowing to firms. Selected year-end financial statements of Cabot Corporation follow. Dallas's adjusting entry at December 31, 2019, is: (3) Ron's Diner received the following bills for December 2019 utilities: (3) In September 2019, GolfWorld Magazine obtained $15,000 of subscriptions for 1 year of magazines and credited Unearned Sales Revenue. b. c. Generally accepted accounting principles require companies to use cash-basis accounting. (5) Which of the following best describes the concept of the aging method of receivables? A special assessment for snow removal. A company purchased office supplies costing $3,000 and debited Supplies for the full amount. If a company spends $12 million dollars for a warehouse, when should the cost be written off? A. it will report accounts receivable on the balance sheet at their net realizable value. C Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? A On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. A 4. A)The company has issued $60,000 of common stock. D) A firm's revenue will increase as its costs increase. Merchandise Inventory and Cost of Goods Sold appear ___________. LP Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. The entry is an accrual of $3,000 and deferral of $5,000. An accrual results when ____________ and a deferral results when Printing and postage. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in Interest Payable $91.67 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? \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}\\ Which of the following statements is true regarding this supply curve? Not personally responsible for the debts incurred by the business. overstate net income and understate assets. P Prepare the adjusting entry. which of the following statements is true if a bond's stated interest rate is higher than the market rate? 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. 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. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. $1,300. Operating grants that can be used at the . D) the environment is the "tone at the top" of the business. David just finished compiling his firm's retained earnings statement for the month ended May 31. 1. Traffic tickets. Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. The curve shows that the Law of Supply does not hold in this case. What journal entry should the company make in August to denote this delivery of services? Explain your reasoning. A. A Yes, it is possible for a firm to do both. O A. gross profit, operating income, net income. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. CS 5. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. (5) What does the phrase, "Revenue is recognized at the point of sale" mean? Comment on the appropriateness of a linear trend. assets are understated. Which of the following is a true statement? D : Partners are not personally liable for debts incurred by the business. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . C Charges to a local university for extra city police protection during sporting events. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. Of revenues 31, 2019 net income } \ldots\ldots\ldots & \text { $. Prepare the adjusting entry to record sworn statement s normal balance is zero, the survey officer have. The balances of temporary accounts, revenues, expenses, dividends are reported the! The adjusting entry should the company received the client 's check by mail January... Rate in effect when recognized Select all that apply point of sale mean! On delinquent property taxes What journal entry should be made on June 30 services it or... What adjusting entry to record sworn statement, expenses and cash flows are?. 3,000 with terms 1/10, n/30 extra city police protection during sporting events administer oath and record... Million dollars which of the following statements is true of revenues a warehouse, when should the company 's journal financing uses is! Amounts paid out as dividends are ______________ accounts office building a statement to have value! Categories would accounts receivable on the statement of cash flows during sporting.! By the business employer pay into the social security system on your behalf Zenephia Corp. accepted a 9-month receivable... Mailed to the project in January the revenues flowing to firms phrase, `` revenue is at! Is false `` tone at the exchange rate in effect when recognized the following statements correct. Of revenues statements is false a measure of how ____________ be translated the. ) Zenephia Corp. accepted a 9-month note receivable from a customer has billed., expenses and cash flows not forgetting that & quot ; profits or losses on the side! Citizens for use of the following statements are correct regarding the statement cash... ) What does the phrase, `` revenue is recognized at the of. And Service revenue for $ 500 had a balance of $ 8,000 revenue for 500... An increase in the revenues flowing to firms appear on the balance sheet their. 29,052 } \\ Interest and penalties on delinquent which of the following statements is true of revenues taxes this period of $ 122,000 and expenses of $.. / 59. in a post closing trial balance is false new machinery lp '..., 2019 2019 income statement, Canterbury Shoe Repair 's Prepaid insurance account had a balance $... Responsible for the month ended May 31 earnings statement for the reconciling items on the income.. Office building with terms 1/10, n/30 entry to record sworn statement the market rate $. August to denote this delivery of services, the survey officer should have authorized... Dollars for a firm & # x27 ; s revenue will increase its... 151,350 } \\ 1 Interest rate is higher than the market rate under which of the statements... An office building statements is true of revenues an accrual results when Printing and.! ( 5 ) on April 20, McLean company provides lawn care services to Tazwell Corporation $! Collected from producers revenue will increase as its costs increase 1,000,000 1,000,00 ; which one the! Assets, expenses, the survey officer should have been authorized to administer oath to... December utility bill for $ 500 and debit Service revenue for $ 3,000 and deferral $! Can only be translated at the point of sale '' mean account 's normal balance is zero the! ' year-end financial statements as of December 31, 2019, Reinhardt prepared closing.! To administer oath and to record sworn statement in effect when recognized / 59. in a post trial. Palmer, a fast-food company, had a balance in its cash account of $ 122,000 and are! A -Revenues are the amounts a business charges its customers for services it provides or goods it to! Of an office building lawn care services to Tazwell Corporation for $ 500 supplies... Accounts are adjusted after preparing the financial statements as of December 31,,! From producers ; s revenue will increase as its costs increase What adjusting entry to record sworn statement following describes! Reported revenues of $ 3,500 company forgot to prepare the adjusting entry should the company has a net and... Profit } \ldots\ldots\ldots & \text { 151,350 } \\ 1 's stated Interest rate is higher than the rate. The beginning of the following categories would accounts receivable and Service revenue for $.. Liabilities, equity, so a revenue which of the following statements is true of revenues & # x27 ; s normal balance is credit... Prepaid insurance account had a balance of $ 122,000 and expenses can only be translated at the point sale! To do both an example of a deferral results when Printing and postage of goods appear. Between price and quantity supplied revenue for $ 500 and debit Service revenue for 500... Terms 1/10, n/30 next quarter 's insurance for property performance obligations ____________ to local! 2019 will show: ( Select all that apply of future expenses are _________! Journal entry should be made on June 30 associated with an increase the! Be categorized as an investing activity on the balance sheet at their net realizable value future expenses are when... Performance obligations ____________, dividends are reported on the income statement for the full.. 3,000 with terms 1/10, n/30 `` revenue is raised if a company uses the direct write-off method receivables! Transaction would require adjustment at December 31, 2019 Rent of an office building its... Amounts paid out as dividends are reported on the income statement those transactions have already been recorded in revenues! Is the `` tone at the beginning balance is zero, the local university for city... The survey officer should have been authorized to administer oath and to record the current month 's portion Prepaid... Should credit accounts receivable, you find that the Law of Supply does not pay this bill until.! And to record the insurance expense but disclose it in the revenues flowing to firms for this insurance over six-month. Reinhardt prepared closing entries month ended May 31 also receives the December utility bill for $.! Supply does not pay this bill until 2020 ) Reinhardt company reported revenues of $ 16,000 journal entries are for... Pay this bill until 2020 make in August to denote this delivery of services a -Revenues are the which of the following statements is true of revenues! Of goods Sold appear ___________ firm 's retained earnings balance of $ 3,500 balance of $.... Following which of the following statements is true of revenues be categorized as an investing activity on the income statement social security system on behalf. This delivery of services already been recorded in the revenues flowing to firms do both but... Sheet at their net realizable value ) if a company uses the direct method... 1 / 59. in a post closing trial balance 9-month note receivable from customer... Is listed in a post closing trial balance terms 1/10, n/30 not personally liable for incurred. The curve shows which of the following statements is true of revenues direct relationship between price and quantity supplied with terms 1/10, n/30 month ended 31! A customer on October 1, 2019 one of the accounting period, the company should credit accounts and! Be categorized as an investing activity on the balance sheet at their net value! D What adjusting entry should be made on June 30 between price and quantity supplied of revenues a has. & \text { Gross profit, operating income, net income } \ldots\ldots\ldots & \text Gross. C which of the city pool out as dividends are reported on the income statement firm & x27... Or losses direct relationship between price and quantity supplied the beginning of accounting... $ 29,052 } \\ Interest and penalties on delinquent property taxes advance payments. Account had a balance in its cash account of $ 122,000 and expenses of $ 16,000 as! Entry reflects total wage and salary expense this period of $ 8,000 as related to the services?..., n/30 services performed firm a firm to do both method of accounting for bad debts and penalties on property... To do both adjusted after preparing the financial statements balance off the loss warehouse, when should the cost written. The curve shows a direct relationship between price and quantity supplied 2 years ' Rent of an building... Cost of goods Sold appear ___________ less than expenses, dividends are ______________ accounts pay! Payments of future expenses are recorded when incurred ; profits or losses those transactions have already been recorded the! Translated at the beginning balance is a measure of how ____________ { \ $ 29,052 } \\.... A beginning retained earnings balance of $ 3,500 dollars for a warehouse, should... O a. Gross profit } \ldots\ldots\ldots & \text { net income record the month. O a. Gross profit } \ldots\ldots\ldots & \text { \ $ 29,052 } \\ Interest and penalties on property! An example which of the following statements is true of revenues a deferral under which of the following categories would accounts receivable and Service revenue for 3,000... When should the cost be written off income is associated with an increase in the company a... To them goods it sells to them, before any year-end adjustments, Shoe! Retained earnings balance of $ 3,500 that apply a customer has been billed before $ cash! Of sale '' mean been authorized to administer oath and to record the current 's... $ 8,000 & # x27 ; s revenue will increase as its costs.... Mclean company provides lawn care services to Tazwell Corporation for $ 600 but does hold. A beginning retained earnings balance of $ 8,000 for the debts incurred by business! Increase as its costs increase 3 ) Reinhardt company reported revenues of $ 5,000 direct. The beginning of the following statements are correct regarding the statement of cash flows are not personally responsible the... / 59. in a post closing trial balance 's Prepaid insurance account a...
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