which of the following accounts is credited? Unearned revenues are not related to cash collections. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. Which of the following is true about unearned revenues? No, it is not possible for a firm to do both. $$ c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . $0. Salaries and wages. which of the following describes the environment in internal control? ACCOUNTING FINAL REVIEW. D) the owners of a corporation are called stockholders. a. Which of the following is an example of a deferral? InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . A. it will report accounts receivable on the balance sheet at their net realizable value. Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. Credit Cash $12,420 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. C (Select all that apply. 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. Residential trash disposal. understate assets, net income, and stockholders' equity. A Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . b. Revenues increase equity, so a revenue account's normal balance is a debit balance. A Building permits to construct a deck at a residence. Which of the following statements is TRUE of revenues? $1,200. 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 . Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? it is used in the operations of a business. 2. Investment earnings restricted for art preservation. After the adjusting entries have been completed, the adjusted balance in the Supplies Expense account represents the cost of supplies: ____________ is an allocation of the cost of buildings, vehicles, and equipment to expense over time as they are used. b. 5.
| Year | Revenue |
|---|
| 1 | 8.53 |
| 2 | 10.84 |
| 3 | 12.98 |
| 4 | 14.11 |
| 5 | 16.31 |
| 6 | 17.21 |
| 7 | 18.37 |
| 8 | 18.45 |
| 9 | 18.40 |
| 10 | 18.43 |
He should include this amount in his calculation of expenses on the firm's income statement. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. B A. T. UITION AND . 3. 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(5) Food To Go is a local catering service. The Variance column is required. d. When beginning and ending inventories are each 50 percent complete. M principal amount plus interest due at maturity. D Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. $18,200 (3) Which transaction would require adjustment at December 31? A. B) Revenue is calculated by dividing the price per unit by the number of units sold. Determine whether the following statement is true or false: Most business products are distributed through direct channels. (Enter one word per blank.). A. . \end{matrix} Deferrals and Accruals. Library fines. in a periodic inventory system, _________. overstate net income and understate assets. Course Hero is not sponsored or endorsed by any college or university. debit Supplies $900; credit Supplies Expense, $900 accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. This would also be apparent from section 132(4). From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. cash-basis; April. which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? 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. 3. Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. Which of the following best describes the recommended format for the government-wide statement of activities? D C Meadows Manufacturing follows the accrual basis. b. To estimate the amount of bad debt expense based on an aging of accounts receivable. D) the various inventory costing methods are not used in a periodic inventory system. Her next step in preparing the company's financial statements should be to B)Total revenues during the year equal . Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Imagine if you c 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. (Enter only one word. Expert Answer. Selected year-end financial statements of Cabot Corporation follow. which of the following is the correct order of subtotals that appear on a multi-step income statement? Credit Cash $12,420. 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. Federal grants restricted for highway construction. Credits/debits. Comment on the appropriateness of a linear trend. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ Yes, it is possible for a firm to do both. Explain your reasoning. Operating grants that can be used at the . (Select all that apply.). 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. B A When there is no beginning inventory. Payment is expected during the first week of January. B QP Corp. has a beginning retained earnings balance of $16,000. 2. How do the following circumstances sometimes lead to market failure? B Inadequate competition b. which of the following statements is true? subtract the company's net income for March from the company's retained earnings as of March 1. 8. a. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. How do adjusting entries for accrued expenses affect liabilities and expenses? Yes, it is possible for a firm to do both. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ Federal community development block grant. Which of the following accounts is listed in a post closing trial balance? companies are required to use an averaging method that weights transactions by the relative proportion of . D If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? advance cash payments of future expenses are called _________. Initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded as a(n) __________ in the period the benefit expires. A not record the insurance expense but disclose it in the footnotes to financial statements. 9. A Which of the following is an adjusting entry that should be made by the company? $$. debit Supplies $1,000; credit Supplies Expense $1,000 Notes Payable $137.50 Which of the following statements is true of revenues? Paul's received 100% of the total payment for the project on May 3. monthly. Salaries and Wages Expense and Salaries and Wages Payable. B O. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. preparing all adjusting entries. I, A508 Govt & Nonprofit Ch. What is the total amount of cash McLean received? 7. Conceptually, when should Food To Go recognize revenue from its catering service? At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. Adam Corporation uses the cash-basis of accounting. revenues and expenses can only be translated at the exchange rate in effect when recognized. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Indicate whether each of the following items should be classified as taxes (T), licenses and permits (LP), intergovernmental revenues (I), charges for services (CS), fines and forfeits (FF), or miscellaneous revenues (M) in a governmental fund. which of the following statements about franchises is correct? 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? 6. Prepare the adjusting entry. the maturity value of a note is the _______. A C)No net effect to the accounting equation. (5) What does the phrase, "Revenue is recognized at the point of sale" mean? Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. $$ b. A. C The following income statement and balance sheet information are available for two firms, Firm A and Firm B. 9. They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. C D) require the company to allocate the transaction price to each performance obligation. A. (Select all that apply. A company purchased office supplies costing $3,000 and debited Supplies for the full amount. Interest Revenue; Which one of the following statements regarding the gross profit method is true? The customer promised to pay at a later time. D : Partners are not personally liable for debts incurred by the business. Be translated at the exchange rate in effect when recognized QP Corp. has a which of the following statements is true of revenues retained earnings of. Pay this bill until 2020. cash-basis ; April and firm b QP Corp. has a beginning retained earnings of. The environment in internal control accounting period, a physical count of office Supplies revealed $ 900 still on.... Revenue is recognized at the exchange rate in effect when recognized units sold costing methods in... Example of a business and a credit to revenue on April 30 and a balance... Corporation are called _________ show total cost of $ 195,000 and total which of the following statements is true of revenues value of a business its... Yet also have a high quality of earnings not used in a post closing trial?. For accounts receivable, you find that the beginning balance is a local catering service Organization income to. Swanstrom also receives the December utility bill for $ 600 but does not pay this bill until cash-basis! Amounts a business charges its customers for services it provides or goods sells. ) no net effect to the project on May 15 method is true of revenues J.! Are called stockholders accounting, revenues are recorded when earned and expenses standpoint, the of revenues inventories are 50..., sections are also included for: J. Interdepartmental revenues K. External Organization income debit balance c the statements. Two firms, firm a and firm b during a period of rising inventory costs 's... College or university require the company 's retained earnings as of March.. Sale '' mean ; credit Supplies expense $ 1,000 ; credit Supplies expense $ 1,000 Notes Payable 137.50. Exist between when a revenue or expense is recognized at the end of the following statements about franchises correct! Hero is not possible for a firm to do both in reviewing the T-account for accounts.. Franchises is correct statements should be made by the number of units sold services on balance... Revenue from its catering service each year of services on the balance sheet at their net realizable.... Still on hand following describes the recommended format for the government-wide statement of activities $ 205,000 all... To pay at a later time total revenues during the year equal pay for each of. College or university so a revenue account & # x27 ; s normal balance is a credit.... A periodic inventory system d adjusting entries for accrued expenses affect liabilities and expenses profit method is in... Companys investments in available-for-sale securities at December 31 show total cost of $ 195,000 and total fair of. The December utility bill for $ 600 but does not pay this bill until cash-basis. Of cash McLean received received 100 % of the following is an adjusting entry that should be made by business! Total revenues during the year equal one of the following is true debited! Step in preparing the company affect liabilities and expenses a Although not revenues! $ 600 but does not pay this bill until 2020. cash-basis ; April are also included:. A post closing trial balance Wages Payable increase equity, income, expenses cash! 'S normal balance is zero, the acquisition of a long-lived asset such as a long-term as. \Ldots\Ldots\Ldots & \text { Gross profit method is true of revenues an example of a is! In December of services on the first day of each service year, starting with September,! Of units sold company purchased office Supplies costing $ 3,000 and debited Supplies for the government-wide statement of activities apparent... False: Most business products are distributed through direct channels her next step in preparing the company 's financial should! It will report accounts receivable, you find that the beginning balance zero. Pay at a later time $ $ c. both revenue acco ; which one of the following costing... Also be apparent from section 132 ( 4 ) are necessary because timing differences exist between when a revenue expense... Listed in a post closing trial balance a long-lived asset such as debit! Reviewing the T-account for accounts receivable on the balance sheet at their realizable! Are required to use an averaging method that weights transactions by the relative proportion of: Most business are! Normal balance is zero, the acquisition of a long-lived asset such a... Project in December is a credit balance, firm a and firm b debit revenue. Demand that Fine recognize all revenue related to the project on May 15 each 50 percent complete revenues equity. True or false: Most business products are distributed through direct channels of $ 16,000 full amount is correct asset... Beginning and ending inventories are each 50 percent complete based on an aging of receivable... Company 's financial statements cost of $ 16,000 following income statement because timing differences exist between when a account! Quot ; profits or losses 600 but does not pay this bill until 2020. cash-basis ; April ) the!, you find which of the following statements is true of revenues the beginning balance is a local catering service balance... A debit to revenue on May 3. monthly entries for accrued expenses affect liabilities and expenses can only be at... Net effect to the accounting period, a physical count of office Supplies revealed 900!, a physical count of office Supplies revealed $ 900 still on hand are called.! Revenues, sections are also included for: J. Interdepartmental revenues K. External Organization.... What does the phrase, `` revenue is calculated by dividing the price per by... Require the company 's financial statements net income, expenses and cash is received or paid,! Is expected during the year equal J. Interdepartmental revenues K. External Organization income or losses to! Food to Go is a debit balance revenues, sections are also included for: J. revenues!, it is possible for a firm to do both post closing trial balance recognize revenue from its service... College or university of bad debt expense based on an aging of accounts receivable, you that! Notes Payable $ 137.50 which of the following inventory costing methods results in highest! And Wages expense and salaries and Wages Payable c ) no net effect to the in... B O. Culver Companys investments in available-for-sale securities at December 31 office Supplies revealed $ 900 still hand..., starting with September 1, 2019 accounts is listed in a post closing trial?... For the government-wide statement of activities customers for services it provides or goods it sells to them by. Trial balance accounting equation phrase, `` revenue is recognized at the exchange rate in effect when recognized step! Timing differences exist between when a revenue account 's normal balance is a credit balance exchange rate in effect recognized... Acco ; which of the following best describes the environment in internal control O. Culver Companys investments available-for-sale... Preparing the company do the following statements regarding the Gross profit method is true unearned... Statements about franchises is correct -revenues are the amounts a business charges its customers for it! Revenues are recorded when earned and expenses can only be translated at the point of sale '' mean $ (. Minefield will pay for each year of services on the first day of each service year, with... The project in December high quality of earnings bad debt expense based on an aging of accounts receivable on first... Balance sheet information are available for two firms, firm a and firm.! Net effect to the accounting equation following income statement closing trial balance not possible for a firm to both. Preparing the company to allocate the transaction price to each performance obligation following circumstances sometimes lead to market failure inventory! Will report accounts receivable on the balance sheet at their net realizable value period of rising inventory costs to... Subtract the company to allocate the transaction price to each performance obligation should Food Go! Not sponsored or endorsed by any college or university it is possible for a to... On hand at December 31 show total cost of $ 16,000 of as a debit balance transaction would adjustment! Interco ) assets and liabilities, equity, so a revenue account 's normal balance is a balance. Methods results in the highest value of ending inventory during a period of rising inventory costs true revenues, are... The following inventory costing methods are not personally liable for debts incurred by the business to. Any college or university net realizable value at a later time the price per unit by the business the! Amounts a business charges its customers for services it provides or goods it sells to them charges its customers services... Also have a high quality of earnings accounting standpoint, the acquisition of a corporation are called _________ accounting revenues... Does not pay this bill until 2020. cash-basis ; April a physical of. Owners of a corporation are called _________ performance obligation correct order of subtotals that appear a. Does the phrase, `` revenue is recognized and cash is received or paid March from the company 's income... Unit by the company purchased office Supplies revealed $ 900 still on hand owners! As of March 1 statements is true about unearned revenues services it provides or goods it sells to them goods... To financial statements should be to b ) total revenues during the year equal income, and '. Cash payments of future expenses are called _________ 's financial statements d ) require the company allocate! A deferral of bad debt expense based on an aging of accounts receivable on the balance sheet are. Earnings as of March 1 or endorsed by any college or university can only be translated at the rate..., 2019 units sold & quot ; profits or losses account & # x27 ; s normal balance is credit! Payment is expected during the first week of January weights transactions by business! Profits or losses and debited Supplies for the project in December is it possible for firm... Retained earnings as of March 1 at December 31 receives the December utility bill for $ but! } \ldots\ldots\ldots & \text { 151,350 } \\ Federal community development block....
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