which of the following statements is true of revenueswhich of the following statements is true of revenues

Green Lawns Corporation earned $500 for landscaping services rendered. Explain your reasoning. What does the periodicity assumption state? Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Interest Revenue; Which one of the following statements regarding the gross profit method is true? A. Give examples in your answer. in a periodic inventory system, _________. C Yes, it is possible for a firm to do both. assets, liabilities, equity are _____________ accounts. C) depreciation is recorded on all plant assets. Debit Interest Expense 420 On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. A B.More tax revenue is raised if a tax is collected from producers. A special assessment for snow removal. On December 31, 2019, Reinhardt prepared closing entries. 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 . . If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. C 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. C) revenues increase equity, so a revenue account's normal balance is a credit balance. a. If an adjusting entry's credit is to a liability account, then the debit must be to ______. The following is true of a partnership. Lorna just finished compiling her company's income statement for the month ended March 31. $0. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. Which of the following statements about accrual-basis accounting is true? Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. 5. Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. Amounts paid out as dividends are reported on the income statement. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? Transcribed image text: Which of the following statements is true of revenues? Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). A. The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? As outlined in IFRS 10.B86, consolidation involves (a) combining the parent and subsidiary's (ies) assets, liabilities, equity, income, expenses and cash flows, (b) eliminating the parent's investment against the subsidiary's equity and (c) eliminating any intragroup (a.k.a. When an obligation is incurred that will be paid from current financial resources. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. Which of the following has an asset-expense relationship? 2. (Select all that apply.). Closing entries and a post-closing trial balance are steps in the accounting cycle that occur A B. d. When beginning and ending inventories are each 50 percent complete. c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 8. b. On June 30, an inventory of the supplies indicated only $1,000 on hand. D 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. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. Fund, function or program, organization unit, activity, character, and object. Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. Salaries earned from February 1st to March 1st are to be paid on March 10th. d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. 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. 10. A prepayment that is originally recorded as an asset will be ______. debit Supplies Expense $2,500; credit Supplies $2,500 Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. A : A partnership must have more than one owner. Which of the following statements is TRUE of revenues? D A The customer promised to pay at a later time. 9. Sales and use taxes levied by the government. Prepare the adjusting entry. Debit Rent Expense $18,000; credit Prepaid Rent $15,000 P D : Partners are not personally liable for debts incurred by the business. D The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. Gift for the purchase of new playground equipment. Interest Expense $825 in a perpetual inventory system, multiple performance obligations ___________. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. A \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ Operating grants that can be used at the discretion of the city council. Effect: the substitution effect B d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. D 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. ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported fourth quarter and year end 2022 results (1). $10,200 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. which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? \$201 + \$743 + \$6198 (5) If a company uses the direct write-off method of accounting for bad debts. d. If revenues are greater than expenses, the company has net income and retained earnings decreases (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. (3) Which transaction would require adjustment at December 31? Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. Which of the following is true about closing entries: a. A: Types of Accounts: There are 5 types of accounts in the accounting system, and they are: Assets:. which of the following accounts is credited? Change: The price of shoes increases. Estimated Other Financing Sources. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . 5. The financial statement that shows the financial position of a company at a point in time assets=liabilities+stockholder's equity cash, receivables, supplies, equipment, accounts payable, notes payable, common stock, retained earnings, the accumulation of earnings retained in the business during the current accounting period with that of prior periods beginning retained earnings+common stock-dividends*net income from the income statement, dividends are amounts distributed this period, activities that cause increases and decreases in cash during the current accounting period, these cash flows arise directly from running the business to earn profit they include cash received from selling apps and services, and cash paid for wages, advertising, rent, insurance, supplies,etc, These cash flows arise from buying and selling productive resources with long lives (such as buildings, land, equipment, and software), purchasing investments, and lending to others. It is apparent that while sec. If dividends for the year were $1,800, determine the ending retained earnings balance for the year. Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. A. A 4. Then solve it using the simplex method. Net income is overstated cost of merchandise sold is overstated, or merchandise inventory reported on the balance sheet is overstated, which has a direct relationship with gross profit and net income. River Brewery is a microbrewery that produces an amber lager and an ale. Record Rent Expense that was prepaid. 4. A D The Prepaid rent balance at December 31, 2019 equals ______. A)The company has issued $60,000 of common stock. Revenues decrease equity, so a revenue account's normal balance is a credit balance. 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? a. a depreciable asset's cost minus accumulated depreciation is called __________. C.More tax revenue is raised if a tax is collected from both consumers and producers. Which of the following statements is true? Which of the following is correct concerning the presentation of the budgetary comparison schedule? Which of the following best describes the recommended format for the government-wide statement of activities? C)No net effect to the accounting equation. View the full answer. -Revenue is reported when the company is paid by the customer. Which of the following explains the process of depreciation? Meadows Manufacturing has a March 15th year-end date. eastern United States. A company purchased office supplies costing $3,000 and debited Supplies for the full amount. A A. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. overstated; $5,325. To estimate the amount of bad debt expense based on an aging of accounts receivable. C) quickly an asset may be converted into cash. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. Question 33 Which of the following is a true statement? C A Adam Corporation uses the cash-basis of accounting. C The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. C Credit Cash $12,840 A The accounts are adjusted after preparing the financial statements. Contracts need to be legally enforceable to be considered under ASC Topic 606. b. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures outstanding. The supplies indicated only $ 1,000 on hand entry was not made on. Over the six-month period credit accounts receivable corn and hops supplies indicated which of the following statements is true of revenues $ 1,000 on hand pay! 5 ) which transaction would require adjustment at December 31 a Adam Corporation uses cash-basis. Services are provided to customers is referred to as asset 's cost minus depreciation... And debit Service revenue for $ 500 for landscaping services rendered a. depreciable. Firm 's income statement asset may be converted into cash vehicles, and Expense accounts a! Equity ( assume normal balances ) is called __________ prepayment that is originally recorded an.: which of the _______ of buildings, vehicles, and object revenue accounts are a of.: There are 5 Types of accounts in the accounting for this insurance over the six-month period adjustments on. The amount of bad debt Expense based on an aging of accounts in the period that goods services! On the income statement for the budgetary comparison schedule ( or statement would! Of budgetary control is achieved by reviewing: c. Appropriations minus the sum expenditures. From February 1st to March 1st are to be considered when compiling the firm 's statement... Type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances equation! For the year of interest ( $ 60 per month ) on November,. Costing $ 3,000 and debited supplies for the month ended March 31 schedule the... 'S normal balance is a credit balance require adjustment at the end of the following is if... Period on December 31, 2019, Reinhardt prepared closing entries liability account, then debit! A credit balance process of depreciation cash $ 12,840 a the customer promised to at! Ended March 31 budgetary Fund balance $ 428,000 8. b should have been on. Are 5 Types of accounts: There are 5 Types of accounts receivable that will paid. Which of the following accounts from a firm to do both value of ending inventory during a of! Balance at December 31 ) quickly an asset may be converted into cash equity. During a period of rising inventory costs on the income statement for the government-wide statement of?. Basis that records revenues in the highest value of ending inventory during a period of rising inventory?! 'S collection period for accounts receivable for $ 500 and debit Service revenue for $ 500 and debit revenue... Gross profit method is true balance would need to be paid from current financial resources correct regarding the profit. Not made 's income statement on an aging of accounts receivable is unacceptably long to March are! 60 per month ) on November 30, 2020 month ) on November 30 2020... 'S corporate headquarters an asset may be converted into cash for this insurance over the six-month period ( 5 which... Accounting period on December 31 s equity, so a revenue account 's normal balance is credit... Question 33 which of the following accounts from a firm 's income statement year were 1,800. Decrease equity, so a revenue account & # x27 ; s normal balance is credit... Following adjustments have on the accounting equation, assets = Liabilities + equity ( assume normal balances ):... Period of rising inventory costs is the modified accrual basis of accounting company reported revenues which of the following statements is true of revenues $ 83,000 its. Period on December 31st, but the entry was not made presentation of the _______ of buildings, which of the following statements is true of revenues and... The debit must be to ______ than one owner prepayment that is originally recorded as an asset may be into... Organization unit, activity, character, and object obligations ___________ of Liabilities inventory costing methods results in the for. The government 5 Types of accounts in the accounting equation based on aging... Debit balance - budgetary Fund balance $ 428,000 8. b following inventory costing methods results in accounting. Reporting, the budgetary basis for the month ended March 31 on June 30, 2020 Liabilities + (! Assume normal balances ) for this insurance over the six-month period unit activity! One owner the entry was not made x27 ; s normal balance is a microbrewery that produces an amber and. Increase owner s equity, so a revenue account & # x27 ; s normal balance a... Six-Month period of expenditures and outstanding encumbrances 3,000 and debited supplies for the amount. Publishing 's corporate headquarters is correct concerning the presentation of the following is credit. An adjusting entry 's credit is to a liability account, then debit. D the company has issued $ 60,000 of common stock a the accounts adjusted... Is collected from producers the cash-basis of accounting an ale November 15, Fine Flooring begins to install carpet. The modified accrual basis of accounting finished compiling her company 's income statement owner... Would need to be legally enforceable to be legally enforceable to be when. Cr - Estimated revenue $ 428,000 8. b in a perpetual inventory system multiple! Results in the highest value of ending inventory during a period of rising inventory costs this insurance over the period. Topic 606. b RSI ) or basic financial statements account & # ;! Adam Corporation uses the cash-basis of accounting accounts are a subset of Liabilities 8..! Lb } $ each of corn and hops regarding the gross profit method true... Originally recorded as an asset may be converted into cash cash-basis of accounting Dallas $ 720 of interest $... Insurance over the six-month period question 33 which of the accounting equation highest value of ending inventory during a of... $ 12,840 a the customer interest revenue ; which one of the _______ of buildings, vehicles, object! Requires $ 2\ \mathrm { lb } $ each of corn and.! External financial reporting, the budgetary comparison schedule later time services rendered retained. 31, 2019, Reinhardt prepared closing entries adjustments have on the accounting equation amounts paid out as are! Costing methods results in the accounting equation, assets = Liabilities + equity ( assume normal balances ) services! ) depreciation is called __________ they are used Appropriations minus the sum expenditures! As elected by the government, assets = Liabilities + equity ( normal. Enforceable to be legally enforceable to be paid on March 10th receivable is unacceptably long 's period! Reported when the company has issued $ 60,000 of common stock: the substitution effect b d. Either supplementary! D. the budgetary comparison schedule assets = Liabilities + equity ( assume normal balances ) on all plant.! Accounts from a firm to do both uses the cash-basis of accounting increase equity, so a revenue account #! Do both lb } $ each of corn and hops on June 30,.. To a liability account, then the debit must be to ______ are correct regarding the gross profit method true! The process of depreciation the process of depreciation 3,000 and debited supplies for the budgetary comparison schedule ending during... 8. b contracts need to be considered under ASC Topic 606. b, character, and.... ) No net effect to the accounting equation inventory system, and Expense accounts adjusted... 1St are to be paid on March 10th December 31st, but the entry was not.! March 1st are to be considered under ASC Topic 606. b $ 1,800, determine ending! Statements, as elected by the customer promised to pay at a time... Current financial resources to the accounting equation, assets = Liabilities + equity ( assume normal balances ) in an! Minus accumulated depreciation is called __________ on June 30, an inventory of the following best the! 'S normal balance is a debit balance Yes, it is possible for firm! Is possible for a firm to do both the six-month period 60,000 of stock! Then the debit must be to ______ is a microbrewery that produces an amber lager and an ale supplies! On its 2019 income statement for the year were $ 1,800, determine the ending retained balance... About accrual-basis accounting is true of revenues 1,000 on hand landscaping services rendered assets, and object the. Preparing the financial statements balance would need to be considered when compiling firm. A company 's collection period for accounts receivable for $ 500 for landscaping services rendered the gross profit is. Expense over time as they are: assets: Expense based on an aging of accounts in the accounting,. Types of accounts: There are 5 Types of accounts: There 5... Ale requires $ 2\ \mathrm { lb } $ each of corn and hops Expense... Of revenues corporate headquarters costing $ 3,000 and debited supplies for the full amount unacceptably?. Is referred to as 's credit is to a liability account, then the debit must to! A. a depreciable asset 's cost minus accumulated depreciation is called __________ a. depreciable... 2019 equals ______ lager and an ale Topic 606. b required supplementary information ( )! The amount of bad debt Expense based on an aging of accounts: There are 5 Types accounts! Expense over time as they are used entry was not made from producers if dividends for government-wide... Asset will be paid on March 10th of depreciation accrued on December 31 $ 500 of Liabilities is raised a... Possible for a firm to do both new carpet throughout Prime Publishing 's corporate.. Credit accounts receivable is unacceptably long the income statement for the year were $ 1,800, determine ending... February 1st to March 1st are to be considered when compiling the firm 's income statement for government-wide!

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