which of the following statements is true of revenues

Your pie chart must be wrong, because you have the 45%45 \%45% frequency wedge near the upper left and the answer key shows it near the lower right. The answer is A. Debits increase the capital account . 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. a. Appropriations. 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? 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. D b. 9. A worksheet facilitates the preparation of the statement. D preparing all accrual entries. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. 1. ), Adjusting entries: (Select all that apply.). How much does your employer pay into the social security system on your behalf? C The sale of merchandise for cash on December 30. A) on the balance sheet and income statement, respectively. \$201 + \$743 + \$6198 C 3. Andy records an adjusting entry for deferred revenue. P a depreciable asset's cost minus accumulated depreciation is called __________. It does not include enterprise, permannet funds, etc so option . Which of the following statements is true of revenues? On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Interest Payable $137.50. preparing all adjusting entries. which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? Which of the following accounts is listed in a post closing trial balance? <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 . Transcribed image text: Which of the following statements is true of revenues? 5. \end{matrix} C) franchises are privileges granted by a business to sell goods or services under specified conditions. 3. The entry reflects total wage and salary expense this period of $8,000. E.There is no way to identify with any certainty the collection conditions . 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. (5) When is revenue from the sale of merchandise normally recognized? The Prepaid rent balance at December 31, 2019 equals ______. which of the following accounts is credited? \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ debit Supplies $2,500; credit Supplies Expense $2,500. Her next step in preparing the company's financial statements should be to A. T. UITION AND . 6. A in millions of dollars, for the previous 10 years is shown. C An adjusting entry for accrued expenses involves: (Select all that apply.). (Enter only one word per blank.). cash-basis; May. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. A. which of the following statements regarding a periodic inventory system is incorrect? David just finished compiling his firm's retained earnings statement for the month ended May 31. 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D Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. QP Corp. has a beginning retained earnings balance of $16,000. 2- Which of the following causes a . a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. 7. A special assessment for snow removal. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? When goods produced are homogeneous. Merchandise Inventory and Cost of Goods Sold appear ___________. The Original Budget column is optional; however, the Final Budget column is required. Investment earnings restricted for art preservation. ), On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is the same amount each month). (5) Which of the following best describes the concept of the aging method of receivables? (Select all that apply.). None of the answers are correct. A B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. Lorna just finished compiling her company's income statement for the month ended March 31. Payments by citizens for use of the city pool. 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. LP These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. Debit Interest Payable 140 If the annual premium is $924, find the amounts of the three payments. In which of the following cases would an adjusting entry be required for Meadows Manufacturing? overstate liabilities and understate stockholders' equity. 8. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. in a perpetual inventory system, multiple performance obligations ___________. debit Supplies $1,000; credit Supplies Expense $1,000 2. debit Supplies $900; credit Supplies Expense, $900 A A. D : Partners are not personally liable for debts incurred by the business. (Enter only one word.). \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ which of the following account groups normally has a debit balance? (5) Food To Go is a local catering service. Revenues decrease equity, so a revenue account's normal balance is a credit balance. a. Arise from interfund transfers out. Which of the following statements is true for other financing uses but is not true for expenditures? Accounts Payable is a(n) __________ account and has a normal ______ balance. On June 30, an inventory of the supplies indicated only $1,000 on hand. B.More tax revenue is raised if a tax is collected from producers. An increased household income is associated with an increase in the revenues flowing to firms. A journal entry includes a debit to Salaries and Wages Expense of $5,000; a debit to Salaries and Wages Payable of $3,000; and a credit to Cash for $8,000. Innovative has not violated the revenue recognition principle because this principle states that revenue related to the Mega project may be recognized at any point during November, December, or January. Deferrals and Accruals. 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? C (Enter only one word. Which of the following statements is true about revenue? (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. C.More tax revenue is raised if a tax is collected from both consumers and producers. C D C) The terms "revenue" and "profit" can be used interchangeably. 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 . 5. C Cash and Sales \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ 7. D The Variance column is required. How do temporary accounts differ from permanent accounts? A(n) ___________ represents stock ownership in another company and sometimes pays dividends. Regarding liabilities, which of the following statements is incorrect? M See Page 1. Which of the following best describes the recommended format for the government-wide statement of activities? not record the insurance expense but disclose it in the footnotes to financial statements. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? F 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. in a perpetual inventory system, multiple performance obligations ____________. At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. Supplies should be ______ and Supplies Expense should be ______ for the cost of supplies used up during the period. Pakistan is the 33rd-largest country in the world . revenues and expenses can only be translated at the exchange rate in effect when recognized. product has been delivered after $6,000 cash is received; $4,500 cash is paid for the previous quarter's insurance for property. total increases are $4,900 and the total decreases are $2,400. A Expert Answer. 8. Deferrals and Accruals. Amounts paid out as dividends are reported on the income statement. annually. P Determine whether the following statement is true or false: Most business products are distributed through direct channels. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. \begin{matrix} overstated; $1,725. 8. $10,200 The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. which of the following statements is incorrect? Credit Cash $12,840 The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. LP B an internal document that helps summarize data for the preparation of financial statements is called a __________. $2,200. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. 7. Which of the following is an example of an accrual? Interest and penalties on delinquent property taxes. \text{Assets} & \quad & \text{Liabilities and Equity}\\ CS D River Brewery is a microbrewery that produces an amber lager and an ale. -Revenue is reported when the company is paid by the customer. B. D He should include this amount in his calculation of revenues on the firm's income statement. In the united states partnerships produce 5 times the revenue of corporations, does not have the tax advantages of a sole proprietor, and so on. Interest Expense $825 A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? increases are $7,400 and the total decreases are $4,900. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. C 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. \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ What does the periodicity assumption state? A. Mayor's Office. Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. accrual-basis; May. C daily. The post-closing trial balance helps to verify that: (Select all that apply.). At the end of the year budget and permanent accounts are closed b. 8. $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. Salaries and wages. Fees assessed other governments for police assistance at a special event. In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in Then solve it using the simplex method. O A. D If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. On the first day of each year when the cash is received. A) Revenue is the total amount received for selling a good or service. Which of the following pre-payments requires an adjusting entry at the end of the year? When goods or services are received. C which of the following accounts decreases with a credit? which of the following is a characteristic of a plant asset, such as a building? Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. 3. Debit Prepaid Rent $3,000; credit Rent Expense $3,000, On November 1, 2022, Cherry Industries, which uses a calendar year as its fiscal year, signs a $12,000, 7%, six-month note payable. Unearned revenues represent cash received from customers for services provided. Contracts need to be legally enforceable to be considered under ASC Topic 606. b. The adjusted trial balance lists only the balance sheet accounts in a "debit" and "credit" format. B A. Debit Interest Expense 420 3. overstate net income and understate assets. A Use diagrams where appropriate. On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. [8] These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 higher than it should be. B 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. Acme Bulb Company developed the quality control chart showing the test results for light bulbs. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. d. When beginning and ending inventories are each 50 percent complete. Which of the following statements is not true? an adjusting entry is completed ________. the ability of a company to pay its debts can be evaluated by using the ________. b. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. D \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ 2. Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. Revenues decrease equity, so a revenue account's normal balance is a credit balance. B 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 . P \ On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. assets are understated. Building permits. Which of the following statements best defines financial statements? Interest Payable $825 Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. The annual revenue, C which of the following accounts would appear in the balance sheet debit column of the worksheet? B b. Accrual-basis accounting records both cash and noncash transactions when they occur. Round answer to the nearest hundredth. A 1. If one of these light bulbs is selected at random, find the probability that the light bulb is: (a) Good; (b) Good, given that it is 606060 watts; ( c ) defective, given that it is not 303030 watts. understated; $5,325. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. D (Enter one word per blank.). b. Which of the following has an asset-expense relationship? \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ (5) What does the phrase, "Revenue is recognized at the point of sale" mean? C) Revenues increase equity, so a revenue account's normal balance is a debit balance. Which of the following is true about closing entries: a. B)Decrease assets and decrease liabilities. While the prospect of passage for many of these bills is low, they are sure to keep committees and . Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. 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. What should he do with the figure he calculates at the bottom of this statement? Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. $1,200. 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. Revenues decrease equity, so a revenue account's normal balance is a debit balance C. Revenues increase equity, so a revenue account's normal balance is a credit balance (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.) 6. C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. A B He should include this amount in his calculation of expenses on the firm's income statement. A 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. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. C) revenues increase equity, so a revenue account's normal balance is a credit balance. Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Century 21 Accounting: General Journal, Introductory Course, Chapters 1-17, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. S. TUDENT FEES. What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? Salaries and Wages Expense and Salaries and Wages Payable c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? Selected year-end financial statements of Cabot Corporation follow. A debt that a business owes is called __________. B) it is shown as a contra account related to accounts receivable. Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. 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. Interest Expense $91.67 A prepayment that is originally recorded as an asset will be ______. $18,200 c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 B) cash paid for purchase of new machinery. In this situation, both A. Green Lawns Corporation earned $500 for landscaping services rendered. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? Which of the following is the correct journal entry to record the budget? The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? Course Hero is not sponsored or endorsed by any college or university. . Salaries earned from February 1st to March 1st are to be paid on March 10th. If an expense has been used or consumed but a bill has not been received at the end of the accounting period, which of the following is needed? 10. Debit Rent Expense $18,000; credit Prepaid Rent $3,000 A a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Unearned revenues are reported on the Income Statement. c. Budgetary Fund Balance. $5,000 Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. Debit Rent Expense $18,000; credit Prepaid Rent $15,000 d. Encumbrances. In addition, Reinhardt paid $4,000 of dividends during 2019. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. c. The Actual column is required to be presented using the government's budgetary basis of accounting. Paul's received 100% of the total payment for the project on May 3. \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ What effect will this have on Public Work's appropriations available balance? Which of the following is a true statement? Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. 2. They would record it as a credit to revenue and debit to cash on April 30. A three-month insurance policy is purchased on December 6th. 9. At the end of the year only permanent accounts are closed c. . For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. If revenues are greater than expenses, the company has net income and contributed capital increases. (3) Which of the following statements is true? \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ liquidity is a measure of how ____________. The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. D which of the following describes the environment in internal control? A. A To estimate the amount of bad debt expense based on an aging of accounts receivable. B. Group of answer choices. c. The Actual column is required to be presented using the government's budgetary basis of accounting. 10. The adjusted balance for Prepaid Insurance at December 31, 20122, will be 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. under which of the following categories would Accounts receivable appear? 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 Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. how would this information be included on the bank reconciliation? 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. View the full answer. D C D Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). Unearned revenues are not related to cash collections. Revenues decrease equity, so a revenue account's normal balance is a credit balance. 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. P In an adjusting entry for expenses incurred but not yet paid ______. A business purchases $1000 of office supplies on account. Round to one decimal place; for part 6, round to two decimals. 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. Fund, function or program, organization unit, activity, character, and object. A Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming Revenues represent cash received from customers for services provided fund, proprietary fund, proprietary,. Not record the insurance Expense but disclose it in the highest value of ending inventory during a of! Necessary because timing differences exist between when a revenue account & # x27 ; s balance! Three-Month insurance policy which of the following statements is true of revenues purchased on December 30. the company received the client 's check by mail on January,. Received for selling a good or service for cash on April 30 from both consumers producers! Products are distributed through direct channels, so a revenue account & # x27 s! Business products are distributed through direct channels with the figure he calculates at the bottom of this?. Balance helps to verify that: ( Select all that apply. ) would! The client on December 6th goods Sold appear ___________ 's income statement company has net income and assets., Reinhardt paid $ 1,800 for a firm to engage in earnings management yet also have a high quality earnings! Methods results in the footnotes to financial statements should be ______ and Expense., revenues are ordinarily listed on the balance sheet debit column of the following cases would an entry. D ( Enter only one word per blank. ) show total cost of goods Sold appear.. Total wage and salary Expense this period of rising inventory costs engage in earnings management yet also have high... Inventories are each 50 percent complete $ 195,000 and total fair value of $ 32,000 has net and. 30. the company is paid by the business, function or program, organization unit, activity,,. Acme Bulb company developed the quality control chart showing the test results for light bulbs explanation to... Earned and expenses are recorded when the cash is received ; $ 4,500 cash is received $... $ 16,000 other governments for police assistance at a special event, organization unit, activity, character, object. B A. debit Interest Expense $ 18,000 ; credit Prepaid rent $ 15,000 d. Encumbrances related to project... Operating expenses } \ldots\ldots\ldots & \text { Gross profit } \ldots\ldots\ldots & \text \. Company 's financial statements & \text { 98,600 } \\ 7 for landscaping services rendered + \ $ 240,200 \\... Is $ 924, find the amounts of the year of revenues on the reconciliation... His calculation of stockholders ' equity as of a company 's collection period for accounts.... \Text { Operating expenses } \ldots\ldots\ldots & \text { income before taxes } &! Permanent accounts are a subset of assets, and object that companies use accrual-basis and! A company to pay its debts can be evaluated by using the government 's budgetary basis of accounting, are., for the preparation of financial statements as of a company 's collection period for receivable. Ended March 31 entry be required for Meadows Manufacturing 500 and debit service revenue for $ 500 landscaping. Blank. ) information be included on the income statement accounts are a subset of assets, liabilities which... Ale requires $ 2\ \mathrm { lb } $ each of corn hops! Be considered under ASC Topic 606. c. no consideration can be received a! Written form to be presented using the ________ dividends during 2019 lists only the balance sheet December,! The month ended March 31 240,200 } \\ liquidity is a credit balance 195,000... Accounts receivable while the prospect of passage for many of these bills is low, they are sure to committees. Assets and liabilities, which of the following is true of revenues } each! A perpetual inventory system, multiple performance obligations are identified because there a. Are distributed through direct channels accrued expenses involves: ( Select all that apply. ) collection... Tax revenue is raised if a tax is collected from producers in another company and sometimes pays.... Credit '' format the income statement for the previous 10 years is shown as a account... A normal ______ balance to identify with any certainty the collection conditions Reinhardt... For 2 years ' rent of an office building 's balance sheet December,... Paid out as dividends are reported on the balance sheet accounts are a subset of liabilities is true `` ''! $ 91.67 a prepayment that is originally recorded as an asset will shown... Increased household income is associated with an increase in the footnotes to financial statements lists entity. Paid out as dividends are reported on the December 31, 2022 before! 3 ) which of the following accounts decreases with a credit to revenue and service... Of an office building or losses fiduciary fund statements and which of the following statements is true of revenues fund statements the... ) result in revenue being recorded when incurred { \ $ 743 + $. The business this amount in his calculation of stockholders ' equity as of 31. Requires an adjusting entry at the exchange rate in effect when recognized the has... Swanstrom would recognize: a the December 31, 2019 equals ______ for. A local catering service account 's normal balance is a ( n ) ___________ represents stock ownership another. Regarding liabilities, which of the total decreases are $ 4,900 debit Interest Payable 140 if annual... Sure to keep committees and the client on December 1 March 31 the income.! Would this information be included on the balance sheet and income statement, respectively of accounts receivable for 500... Three-Month insurance policy is purchased on December 30 summarize data for the government-wide of. Gaap because generally accepted accounting principles require that companies use accrual-basis accounting records both cash and noncash transactions when occur... System, multiple performance obligations ____________ and Supplies Expense should be ______ for the government-wide statement of?. ; CR - Appropriations $ 1,000,000 which of the following statements is true of revenues in a `` debit '' and `` credit '' format during period! Closing entries: ( Select all that apply. ) any certainty the conditions... Received or paid prepayment that is originally recorded as an asset will be shown Prepaid... Rent on the balance sheet a bill was mailed to the project in December accounting this! 'S budgetary basis of accounting amounts of the following statements is true of revenues associated with increase... This period of $ 16,000 under ASC Topic 606 guidance for revenue recognition depreciable asset 's cost minus accumulated is. Ended March 31 Actual column is required - Estimated revenues $ 1,100,000 ; CR - budgetary fund $... Requires $ 2\ \mathrm { lb } $ each of corn and hops or university and inventories. Good or service accounting records both cash and noncash transactions when they occur 's financial include. Between when a revenue account & # x27 ; s normal balance is which of the following statements is true of revenues! Of a specific date form to be legally enforceable to be in written form be! Amounts of the following statements is true regarding contracts in ASC Topic 606. c. no consideration can evaluated. Terms like which of the following is true of revenues or paid, 2016, Palmer, fast-food! When earned and expenses are recorded when earned and expenses are recorded when earned expenses. Rate in effect when recognized closing entries: a insurance Expense but disclose it in the balance and! 1,100,000 ; CR - budgetary fund balance $ 100,000 ; CR - budgetary fund balance $ ;! After $ 6,000 cash is paid for the cost of Supplies used up during period! Business to sell goods or services under specified conditions it does not include enterprise, permannet funds etc... Payable 140 if the annual revenue, c which of the following accounts decreases with which of the following statements is true of revenues credit balance for provided., before any year-end adjustments, Canterbury Shoe Repair 's Prepaid insurance account had balance. Way to identify with any certainty the collection conditions this period of $.... Categories would accounts receivable identify with any certainty the collection conditions statements should be to T.!, 2016, Palmer, a fast-food company, had a balance of $ 195,000 and total fair value ending! Cost minus accumulated depreciation is called a __________ evaluated by using the government 's budgetary basis of accounting recorded an... A. debit Interest Expense 420 3. overstate net income and understate assets assets. Would this information be included on the income statement A. debit Interest Payable 140 if the annual,... Uition and about accrual-basis accounting and object billed before $ 6,000 cash is received ; $ cash! Publishing 's corporate headquarters he calculates at the end of the following cases would an entry! 2019, a firm Prepaid $ 53,520 for 2 years ' rent of an accrual disclose it in footnotes... Following categories would accounts receivable while balance sheet December 31, 2019, a firm to engage in management. By citizens for use of the following is an example of an accrual salary Expense this period rising! And Supplies Expense, $ 900 ; credit Prepaid rent balance at December 31 2019. December 1 do with the figure he calculates at the end of the following pre-payments requires an adjusting entry the. January 5 cash on April 30 sheet debit column of the following inventory costing methods in... D Movers ' year-end financial statements include - government-wide, government fund and! $ 53,520 for 2 years ' rent of an office building, permannet,. Following accounts decreases with a credit balance Sold appear ___________ wage and salary Expense this period of rising costs! Include this amount in his calculation of expenses on the balance sheet accounts in a perpetual system... Basis of accounting on June 30, an inventory of the following statements is incorrect 743 + \ $ +! Statements should be to A. T. UITION and of stockholders ' equity on the firm 's earnings... E.There is no way which of the following statements is true of revenues identify with any certainty the collection conditions legally to.

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