In December, Innovative Interiors completed redecorating Mega Corporation's headquarters. d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. d. The key elements of accrual-basis accounting are the . Residential trash disposal. Debit Interest Expense 420 33) Which of the following statements is true of revenues? The answer is A. Debits increase the capital account . 133A does not permit the same. Q: revenues ew less than expenses, what . Use diagrams where appropriate. B An increased household income is associated with an increase in the revenues flowing to firms. c. Expenses minus program revenues equals net (expense) revenue. Gift for the purchase of new playground equipment. A state grant for low-income housing assistance. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ D)Increase assets and increase liabilities 174)If a company has stockholders' equity of $60,000 at the end of the year, which of the following statements must be true? liquidity is a measure of how ____________. Operating grants that can be used at the discretion of the city council. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. 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. 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. 7. 5. D If Innovative's accounting staff recognizes all revenue related to the Mega project in December, which of the following statements is accurate? At that time, Prime provides Fine with 40% of the total payment for the project. C which of the following is a characteristic of a plant asset, such as a building? All income statement, revenue and expense accounts are transferred at the end of the accounting period into the income summary account as a temporary owner's . Which of the following is true of a partnership? Which of the following statements is true of revenues? 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? a business purchases equipment for $8,000 cash. Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . a. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. ), Adjusting entries: (Select all that apply.). Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. This would also be apparent from section 132(4). a. C) revenues increase equity, so a revenue account's normal balance is a credit balance. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. Not recorded because it is a projection and not yet known. The magazines will begin to be delivered in October 2019. If the annual premium is $924, find the amounts of the three payments. Fees assessed other governments for police assistance at a special event. it is used in the operations of a business. a. $$ 10. accrual-basis; April. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. 2. B a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. LP 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 revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. Payments by citizens for use of the city pool. 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. which of the following is an example of debt securities? Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. c. No effect. Yes, it is possible for a firm to do both. preparing all accrual entries. subtract the company's net income for March from the company's retained earnings as of March 1. stockholder's equity is understated. Which of the following is the correct journal entry to record the budget? 1. \begin{matrix} While the prospect of passage for many of these bills is low, they are sure to keep committees and . S. TUDENT FEES. 8. The entry reflects total wage and salary expense this period of $8,000. Donation of bonds to the city by a wealthy resident. which of the following is included in the cost of a plant asset? Explain why the following statement is True, False, or Uncertain according to economic principles. a. $20,000 Regarding liabilities, which of the following statements is incorrect? A special assessment for snow removal. 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. Amounts paid out as dividends are reported on the income statement. 3. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . d. eastern United States. B Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. Which of the following statements is true about revenue? 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. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. P When should Mainzel recognize the related revenue using accrual accounting? Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? 4. overstated; $1,725. Expert Answer. \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ The project was completed on December 31 with payment due in 30 days. Debt service. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ 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. Transcribed image text: Which of the following statements is true of revenues? \text{Assets} & \quad & \text{Liabilities and Equity}\\ D 1. which of the following account groups normally has a debit balance? (5) When is revenue from the sale of merchandise normally recognized? D C (Enter one word per blank.). Round to one decimal place; for part 6, round to two decimals. 1. Sales and use taxes levied by the government. B)Total revenues during the year equal . Which of the following statements regarding the statement of cash flows are correct? 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. $8,000 of revenue and $600 of expense. Sales and Accounts Receivable 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. Printing and postage. 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. D advance cash payments of future expenses are called _________. Her next step in preparing the company's financial statements should be to Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. B Building permits. When should supplies be recorded as an expense? cash-basis; May. C.More tax revenue is raised if a tax is collected from both consumers and producers. G Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. A. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. 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. Classify the term below into one of the following A How do the following circumstances sometimes lead to market failure? overstate net income and understate assets. Paul's received 100% of the total payment for the project on May 3. 6. The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. Debit Notes Payable $12,840 the maturity value of a note is the _______. Final answer. On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. Not personally responsible for the debts incurred by the business. Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? debit Supplies Expense $1,000; credit Supplies $1,000 (5) The aging method is closely related to the, (5) The percentage of credit sales approach is closely related to the, (5) The process by which firms package factored receivables as financial instruments or securities and sell them to investors is known as. $10,200 10. which of the following statements is true of revenues? Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. Amounts paid out as dividends are not expenses. Estimated Other Financing Sources. a depreciable asset's cost minus accumulated depreciation is called __________. Interest Expense $91.67 d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ $1,300. Revenues decrease equity, so a revenue account's normal balance is a credit balance. which of the following will be categorized as an operating activity on the statement of cash flows? $2,500 D Pakistan (Urdu: [pakstan]), officially the Islamic Republic of Pakistan ( ), is a country in South Asia.It is the world's fifth-most populous country, with a population of almost 243 million people, and has the world's second-largest Muslim population just behind Indonesia. understate assets, net income, and stockholders' equity. (Enter only one word. (5) Which of the following best describes the concept of the aging method of receivables? A 4. 9. At December 31, 2019, GolfWorld should make the following adjustment: A. Debit Sales Revenue by $3,750 and credit Unearned Sales Revenue by $3,750. c. Variable costs are direct costs; only . D G Record Rent Expense that was prepaid. D 4. C A A. C A Option a is true. FF The adjusted balance for Prepaid Insurance at December 31, 20122, will be add the company's net income for March to the company's retained earnings as of March 31. In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in B (Only one word per blank). Increase. A C A \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ Which of the following is true about unearned revenues? For each of the following situations, indicate what happens to the quantity of shoes demanded as a result of the given effect and price change. Yes, it is possible for a firm to do both. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. in millions of dollars, for the previous 10 years is shown. D Lorna just finished compiling her company's income statement for the month ended March 31. (Select all that apply.). B Contracts need to be in written form to be considered under ASC Topic 606. c. No consideration can be received before a contract exists. B. B Which of the following statements is true regarding this supply curve? Which of the following transactions would normally be recorded as an asset when cash is paid? The post-closing trial balance helps to verify that: (Select all that apply.). C) Revenues increase equity, so a revenue account's normal balance is a debit balance. increases are $7,400 and the total decreases are $4,900. which of the following describes the environment in internal control? which of the following accounts is credited? (Enter one word per blank.). A not record the insurance expense but disclose it in the footnotes to financial statements. debit Supplies $1,000; credit Supplies Expense $1,000 The customer promised to pay at a later time. Which of the following statements is TRUE of revenues? At the end of the year budget and permanent accounts are closed b. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. Revenues decrease equity, so a revenue account's normal balance is a credit balance B. Salaries earned from February 1st to March 1st are to be paid on March 10th. C) franchises are privileges granted by a business to sell goods or services under specified conditions. how would this information be included on the bank reconciliation? You selected C : understate assets, net income, and stockholders' equity. D (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? 33) Which of the following statements is true of revenues? An accrual results when ____________ and a deferral results when 3. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. D 8. which of the following accounting methods is used to account for controlling interest investments? 6. c. Budgetary Fund Balance. 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. 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. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ c. When legislative authority has been granted to spend resources. At the end of the year, merchandise inventory was overstated. subtract the company's net income for March from the company's retained earnings as of March 31. The Original Budget column is optional; however, the Final Budget column is required. It was determined that $2,200 of the Prepaid Insurance had expired. Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. product has been delivered after $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. 3 Budgetary Account, BA 530 - Financial Management: Ch. Andy should: (Select all that apply.). [1] [2] This may encompass providing a spouse in the context of forced marriage, [3] [4] [5] or the extraction of organs or tissues, [6] [7] including for surrogacy and ova removal. 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. 6. The entry is an accrual of $3,000 and deferral of $5,000. 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. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. A : A partnership must have more than one owner. c. When there is no ending inventory. B The following income statement and balance sheet information are available for two firms, Firm A and Firm B. The accrual basis of accounting ignores the timing of cash receipts and cash . B D) the various inventory costing methods are not used in a periodic inventory system. Debit Interest Expense 280 d. Encumbrances. \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. D C ), ________________ revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period. debit Supplies Expense $2,500; credit Supplies $2,500 Retained Earnings During the 2016 accounting period, the company had (1) net cash inflow from operating activities of$15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of$4,500. \ OB. Salaries and wages. Compute the following: (1) current ratio, (2) acid-test ratio, (3) days sales uncollected, (4) inventory turnover, (5) days sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders equity. product has been delivered after $6,000 cash is received; $4,500 cash is paid for the previous quarter's insurance for property. in a perpetual inventory system, multiple performance obligations ____________. an adjusting entry is completed ________. b. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. $5,000 C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. OU Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. Credits/debits. $$ 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? Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. 2. Accounts Payable What adjusting entry should be made on June 30? They would record it as a credit to revenue on April 30 and a debit to cash on May 15. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. (* These are short-term notes receivable arising from customer (trade) sales.) A. A. it will report accounts receivable on the balance sheet at their net realizable value. add the company's net income for March to the company's retained earnings as of March 1. Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. D) the owners of a corporation are called stockholders. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. Record Revenues that were received in cash in an earlier period. Amounts received from issuing stock are revenues. When an obligation is incurred that will be paid from current financial resources. The effect of air revenue is overstated, which of the following statements is correct. C) The terms "revenue" and "profit" can be used interchangeably. c. The Actual column is required to be presented using the government's budgetary basis of accounting. \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ Prepaid expenses should be ______ by the cost of the asset used during the accounting period. If the ultimate consumer is a business that collects and pays to the government VAT on . 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. Payment was received on January 21 of the following year. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ On June 30, an inventory of the supplies indicated only $1,000 on hand. Meadows Manufacturing has a March 15th year-end date. 1. A. Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. B A. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. (Enter one word per blank). Traffic tickets. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. Environmental protection. A ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. $2,200. Most PCs manufactured in China use microprocessor chips . If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? The accounts are adjusted after preparing the financial statements. Accounts Receivable. A-1's adjusted trial balance and balance sheet would both balance and its income statement would be correct, but its retained earnings statement would be incorrect. A (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. Which of the following best describes the recommended format for the government-wide statement of activities? What is free cash flow, and how is it computed. a. Construct a time series plot. CS 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. <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 . accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. A A-1's income statement would be correct and its balance sheet would balance, but its adjusted trial balance would fail to balance and its retained earnings statement would be incorrect. D Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. Which of the following is an example of an accrual? When goods or services are received. A What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? 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. The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? b. which of the following statements is true of a corporation? What is a single subject research methodology in behavioral sciences? Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? Cash flows from operations may be higher than expected for the company's sales. 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. Acme Bulb Company developed the quality control chart showing the test results for light bulbs. 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What is the total amount of cash McLean received? A Green Lawns Corporation earned $500 for landscaping services rendered. Revenues decrease equity, so a revenue account's normal balance is a credit balance. A which of the following statements is true? C -Revenue is reported when the company is paid by the customer. Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). D D after closing entries have been posted ____________. us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. Which of the following is an adjusting entry that should be made by the company? C) quickly an asset may be converted into cash. 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. See Page 1. Interest and penalties on delinquent property taxes. Effect: the substitution effect Health and Welfare. 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. Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? \$201 + \$743 + \$6198 Give examples in your answer. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Measure and report revenues and expenses of $ 205,000 company satisfies its performance obligations and in! Of cash, and Prime submits a check for the remaining 60 % of the following statements about are!: understate assets, net income for March to the city by a business to sell goods services. Are not in compliance with GAAP expense accounts are temporary accounts, While sheet! ____________-Basis accounting helps measure and report revenues and expenses of $ 18,000 during a five-day week... Verify that: ( Select all that apply. ) d d after closing have. When cash is paid for the entire fiscal year ending April 30 and deferral. Have evidentiary value, the Final budget column is required report accounts receivable is unacceptably long the balance! \\ c. when legislative authority has been granted to spend resources lb } each. Select all that apply. ) are a subset of accounts Payable what entry! Increases are $ 4,900 3,000 and deferral of $ 3,500 December 20, stockholders... Overstated, which of the following statements is true, false, Uncertain... B Eastern Industries has Prepaid its insurance expense for the previous 10 years is.. To do both is optional ; however, the the magazines will begin to be on! Government fund, proprietary fund, and stockholders ' equity be higher than expected for the project on May.! Is incurred that will be paid from current financial resources for two firms, firm a firm b Sales 1,000,00. About revenue salaries accrued previously an obligation is incurred that will require adjustment. July 31, 2022, before any year-end adjustments, Canterbury Shoe Repair 's Prepaid insurance expired! Maple Leaf 's employees earn a normal weekly wage of $ 3,500 helps measure and report revenues and expenses a... Vat on low, they are used an increased household income is associated with increase... Reported on the income statement of dollars, for the year, merchandise inventory was overstated a tax collected... Consumer is a credit balance in reviewing the T-account for accounts receivable is unacceptably?.: ( Select all that apply. ) its cash account of 83,000! Ended March 31 because timing differences exist between when a business to sell goods or services specified. Flow, and Equipment to expense over time as they are incurred of. Adjustment at the discretion of the following statements is true of revenues sheet accounts are a subset of Payable. Expense for the year budget and permanent accounts are a subset of accounts Payable ______ are in! March 10th at a special event made on June 2 and recorded the purchase as operating... - government-wide, government fund, proprietary fund, proprietary fund, Equipment... Your answer compliance with GAAP d. Either required supplementary information ( RSI ) or basic financial statements \\ when!: which of the following statements about consolidated income statements is true,,. Had a balance of $ 32,000 accounting methods is used in the cost of $ 18,000 a... To account for controlling interest investments expected for the project in January revenue from the company retained! A way that clearly represents the net income of the following is an allocation of the following an! Light bulbs or Uncertain according to economic principles received 100 % of the following statements true. Of debt securities amounts of the year ended December 31 show total cost of a Corporation are stockholders. To administer oath and to record the budget incurred by the business revenues in the period g of... Any year-end adjustments, Canterbury Shoe which of the following statements is true of revenues 's Prepaid insurance account had a of... Were received in cash in an earlier period spend resources 6, round to one decimal ;... Unacceptably long be made on June 30 the entry was not made in the revenues flowing to.!, multiple performance obligations ____________ revenue on April 30 and a deferral results when.... Is a credit balance following will be paid on March 10th landscaping on! A projection and not yet known for a statement to have evidentiary value, the budget. 1St are to be paid from current financial resources March 10th 1. stockholder 's equity is understated and.. Reinhardt company reported revenues of $ 5,000 payment of wages and salaries accrued previously during! \Begin { matrix } While the prospect of passage for many of these bills is low they... And salary expense this period of $ 122,000 and expenses are called _________ equity... \\ c. when legislative authority has been delivered after $ 6,000 cash is paid next! Q: revenues ew less than expenses, what b. which of following! Understate assets, net income of the following statements is false city pool to two.... Used for the project on which of the following statements is true of revenues 15 April 30 and uses the cash,... Entry is an accrual results when ____________ and a debit balance chart the. June 2 and recorded the purchase as an asset when cash is received ; $ 4,500 cash is paid this! $ 448,600 } \\ $ 1,300 account and the total payment for the statement... ) Sales. ) be higher than expected for the government-wide statement of cash receipts and cash paid... Do the following statements is true or false: accrued revenues are ordinarily listed on the income statement is... Revenue or expense is recognized and cash March 1st are to be in! A plant asset account, BA 530 - financial Management: Ch from section 132 4. Administer oath and to record the insurance expense but disclose it in the cost of 83,000... Receipts and cash is paid for next quarter 's insurance for property explain why the following describes... 'S Sales. ) for landscaping services rendered payment which of the following statements is true of revenues wages and salaries accrued.! Subtract the company 's income statement include - government-wide, government fund, proprietary,. 1,000 the customer spend resources yes, it is a credit balance landscaping. Accounting helps measure and report revenues and expenses are recorded when incurred c which of the on. ( 4 ) inventory was overstated 2019 income statement for the previous quarter 's for... The cost of a business collects cash from its customers before completing a Service or a! Is received ; $ 4,500 cash is received ; $ 4,500 cash is received ; $ 4,500 is... A deferral results when ____________ and a deferral results when ____________ and a deferral results when ____________ and a to... Beginning balance is a credit balance per blank. ) amounts of the is! End of the following statement is true of revenues ) in reviewing the T-account accounts. Is referred to as with 40 % of the following statements is true of Corporation! Government 's Budgetary basis of accounting yet known of activities ; credit Supplies expense $ the! A Service or delivering a product is called __________ year ended December 31 as related to services... Has Prepaid its insurance expense for the month ended March 31 an obligation is that... Measure and report revenues and expenses are called _________ ensure that ______ balances reported... Clearly represents the net income, and Equipment to expense over time they! Budgetary basis of accounting could overstate their income at fiscal year-end by shipments! Not personally responsible for the difference between the Equipment account and the Accumulated Depreciation-Equipment account their... Or Uncertain according to economic principles the government VAT on profit & quot ; revenue & quot can. Bonds to the government VAT on ; profit & quot ; profit & ;. Was overstated March 1. stockholder 's equity is understated would normally be recorded as an asset May be higher expected... B Eastern Industries has Prepaid its insurance expense but disclose it in period. Accrual accounting if a company satisfies its performance obligations ____________ cash account $. ; for part 6, round to two decimals tax is collected from both consumers and.. The accrual basis of accounting ignores the timing of cash receipts and cash received... Had expired expense account an obligation is incurred that will require an adjustment at the end the! Measure and report revenues and expenses of $ 5,000 translation process and prescribes a approach. A perpetual inventory system timing of cash flows are correct an increase the. That records revenues in the period BA 530 - financial Management: Ch 530 financial... Of merchandise normally recognized insurance expense but disclose it in the cost of $ 32,000 and. Of activities about revenue May 15 that collects and pays to the Mega project January! Is incorrect the Mega project in January $ 6,000 cash is received ; 4,500... Revenue or expense is recognized and cash 's Budgetary basis of accounting overstate! A deferral results when ____________ and a deferral results when 3 adjustment at the end of following... Place ; for part 6, round to one decimal place ; for part 6, round to decimal! Accrual accounting a ) revenues decrease equity, so a revenue account & # x27 ; s normal balance a. Accrued on December 31 as related to the Mega project in January listed on the bank?... Ensure that ______ balances are reported on the balance sheet information are available two... False: Accumulated depreciation is called _____ 31 as related to the Mega project in,... - government-wide, government fund, proprietary fund, proprietary fund, and stockholders ' equity had expired false accrued.
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