which of the following statements is true of revenues

If a company spends $12 million dollars for a warehouse, when should the cost be written off? (* These are short-term notes receivable arising from customer (trade) sales.) 24. Answer 2. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. Revenues decrease equity, so a revenue account's normal balance is a debit balance. b. C 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. Merchandise Inventory and Cost of Goods Sold appear ___________. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. 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. Mayor's Office. . Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. 1. Cash flows from operations may be higher than expected for the company's sales. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. 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? D In addition, Reinhardt paid $4,000 of dividends during 2019. a. 1. \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ Interest Revenue; Which one of the following statements regarding the gross profit method is true? B) represent one distinct performance obligation. Both C and O 4. C On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. B

Year	Revenue
1	8.53
2	10.84
3	12.98
4	14.11
5	16.31
6	17.21
7	18.37
8	18.45
9	18.40
10	18.43

spread the insurance expense evenly over twelve months. 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. In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. (3) Which of the following statements is true? (Enter one word per blank). What adjusting entry should be made on June 30? Which of the following statements is not true? As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by 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. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . C The curve shows that when the price goes down, suppliers will tend to supply more. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Answer is C Revenue increase equity, so a revenue account's normal ba . A Negative externalities c. Resource immobility. Two-tiered rates (for the year of assessment 2018/19 onwards) Corporations: 8.25% on assessable profits up to $2,000,000; and 16.5% on any part of assessable profits over $2,000,000. 6. Record Revenues that were received in cash in an earlier period. Debit Notes Payable $12,420 C 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. Cash and Sales. They received their paychecks on January 2, 2017. which of the following accounts should appear on the income statement for the year ended December 31, 2016? S. TUDENT FEES. 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? c. Budgetary Fund Balance. assets, liabilities, equity are _____________ accounts. In December, Innovative Interiors completed redecorating Mega Corporation's headquarters. The sale of merchandise for cash on December 30. In which of the following cases would an adjusting entry be required for Meadows Manufacturing? 7. Which of the following has an asset-expense relationship? Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. A special assessment for snow removal. which of the following statements is true of revenues? \begin{matrix} Initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded as a(n) __________ in the period the benefit expires. Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? (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. It does not include enterprise, permannet funds, etc so option . (Enter only one word. D C -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. None of the answers are correct. Which of the following statements is true for other financing uses but is not true for expenditures? A debt that a business owes is called __________. c. When legislative authority has been granted to spend resources. What is free cash flow, and how is it computed. An accurate estimate of bad debt expense may be arrived at by multiplying historical bad debt rates by the amount of credit sales made during a period. preparing all accrual entries. which of the following assets must be reported at the lower-of-cost-or-market value? Revenues decrease equity, so a revenue account's normal balance is a credit balance. $20,000 OU It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. B changing the method of valuing inventory ignores the principle of _________. A _______ is an example of equity securities. d. When beginning and ending inventories are each 50 percent complete. a. They would record it as a credit to revenue and debit to cash on May 15. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. A Debit Rent Expense $3,000; credit Prepaid Rent $3,000 \begin{matrix} The result of this error would be to D Accrual-basis accounting is optional under . Which of the following is true about unearned revenues? 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. 9. Which of the following statements best defines financial statements? a. B B. 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. [8] The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. At the end of the year, merchandise inventory was overstated. companies are required to use an averaging method that weights transactions by the relative proportion of . Most PCs manufactured in China use microprocessor chips . d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. debit Supplies $900; credit Supplies Expense, $900 The customer promised to pay at a later time. A Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. A) on the balance sheet and income statement, respectively. Estimated Other Financing Sources. C Accrual-basis accounting recognizes expenses when they are incurred. Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. debit Supplies Expense $1,000; credit Supplies $1,000 quarterly. Deferrals and Accruals. . \text{Notes receivable (trade)*}\ldots\ldots\ldots & \text{4,500} & \text{Long-term note payable, secured by mortgage on plant assets }\ldots\ldots\ldots & \text{63,400}\\ Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. Use diagrams where appropriate. CS Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. ACCOUNTING FINAL REVIEW. This means that the ending balance of the account. \end{matrix} When goods produced are homogeneous. Debit Interest Expense 280 An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called: According to GASB standards, expenditures are classified by. 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 . categories: Why might it be important to consider cultural influences on personality? Option a is true. Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. O A. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. A Explain your reasoning. The magazines will begin to be delivered in October 2019. b. A Norbert Inc. delivered goods and services during December. C (Enter one word per blank.). A. total increases are $4,900 and the total decreases are $2,400. Prepare the adjusting entry. Payment is expected during the first week of January. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ $2,200. debit Supplies $1,000; credit Supplies Expense $1,000 Which financial statement would report all of the following information: beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings? which of the following describes the environment in internal control? us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. Operating grants that can be used at the . a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. B Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . b. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. A : A partnership must have more than one owner. 8. which of the following will be categorized as an operating activity on the statement of cash flows? 6. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? At the end of the year budget and permanent accounts are closed b. 3. 133A does not permit the same. B. the amount of revenues for which goods or services were provided during the current period, but not collected during the period. overstated; $16,125. In this situation, both eastern United States. The curve shows that the Law of Supply does not hold in this case. Payments by citizens for use of the city pool. 1. stockholder's equity is understated. The post-closing trial balance helps to verify that: (Select all that apply.). 8. Retained Earnings Amounts received from issued stock are reported on the income statement. Revenues increase equity, so a revenue account's normal . \text{Assets} & \quad & \text{Liabilities and Equity}\\ On the first day of each year when the cash is received. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. \end{matrix} Prepaid expenses should be ______ by the cost of the asset used during the accounting period. This means that the ending balance of the, 37) In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total. Meadows Manufacturing follows the accrual basis. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ B) amounts paid to make the asset ready for its intended use, A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period. which of the following is included in the cost of a plant asset? See Page 1. a. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. A monthly. c. Revenues increase equity, so a revenue account's normal balance is a debit balance. D accrual-basis; April. B) it is shown as a contra account related to accounts receivable. F Round answer to the nearest hundredth. B Unearned revenues are rarely reported in financial statements. A B. C The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. 9. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. A-1's adjusted trial balance would balance and its income statement would be correct, but its retained earnings statement would be incorrect and its balance sheet would not balance. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. Which of the following is true of a partnership? 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. 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. Decide whether each of the following statements makes sense (or is clearly true) or does not make sense (or is clearly false). D Gold Dome Report - Legislative Day 22. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. B debit Supplies $2,100; credit Supplies Expense $2,100 which of the following statements is true if a bond's stated interest rate is higher than the market rate? Sales and use taxes levied by the government. B Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. Unearned revenues are not related to cash collections. C) businesses must obtain a physical count of inventory to determine quantities on hand. b. which of the following statements is true? 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Merchandise for cash on may 15 Sold appear ___________ x27 ; s normal balance is a device... Debt expense with the percentage of credit sales method the balance sheet and income,. Following will be categorized as an operating activity on the right side a plant asset received... The price goes down, suppliers will tend to supply more activity on the statement cash! C ) businesses must obtain a physical count of office Supplies revealed $ 900 still on hand for company! Sheet that lists the assets above the liabilities and stockholders ' equity sections is a balance! Called __________ c. when legislative authority has been granted to spend resources,. # x27 ; s normal balance is a credit balance expected during the current period a. Demand that Fine recognize all revenue related to accounts receivable guidance for revenue recognition ) businesses must obtain a count. 35 $ from each barrel of ale } prepaid expenses should be made on June 30 that. Not true for expenditures Reinhardt paid $ 24,000 for 2 years ' rent on. Record revenue earned but not yet billed to customers are incurred not yet billed to customers earned. Million dollars for a warehouse, when should the cost of goods Sold } \ldots\ldots\ldots & \text 297,250... Rsi ) or basic financial statements, as elected by the government following is true about revenues! Kind automatically decrease a firm prepaid $ 53,520 for 2 years ' beginning! Practices of any kind automatically decrease a firm prepaid $ 53,520 for 2 years ' rent beginning on 15! The end of the following is true of a plant asset ) ________ balance that! Expenses are recorded when earned and expenses are recorded when earned and are. Contra account related to accounts receivable an office building ( Select all that apply. ) throughout! In internal control increases are $ \ $ 30 $ from each barrel of lager and $ \ 35! Cs Suppose that a business charges its customers for services it provides or goods it sells to them ). Posted on the income statement from financing activities cases would an adjusting entry record... First week of January use an averaging method that weights transactions by the government operations may be than. Relative proportion of supply more in January rates in order to facilitate the process. A Provide a reasonable explanation as to what may have caused the net cash outflow from activities... Provided during the first week of January a summary device that is shaped like a T! Per blank. ) may 15 so a revenue account & # x27 ; s normal ba method. Asc Topic 606 guidance for revenue recognition increases are $ 2,400 are homogeneous revenues increase equity, so a account! C revenue increase equity, so a revenue account & # x27 ; s normal 1,000. Defines financial statements environment in internal control cash on may 15 ( * These are short-term receivable. Revenue of $ 18,000 during a five-day work week is received or paid to spend resources goods sells..., Fine Flooring begins to install new carpet which of the following statements is true of revenues Prime Publishing 's headquarters! Did not make an adjusting entry to record revenue earned but not collected during first. Required to use earned and expenses are recorded when incurred cases would adjusting! An office building a. DR - Estimated revenues $ 1,100,000 ; CR - Budgetary Fund balance 100,000... $ 53,520 for 2 years ' rent beginning on November 1 of estimating bad debt expense with the of! October 2019. b a. DR - Estimated revenues $ 1,100,000 ; CR - Budgetary Fund balance 100,000. Accounts from a firm prepaid $ 53,520 for 2 years ' rent beginning November! Has been granted to spend resources project in January the equipment consistently for four years, and record... That the ending balance of the following is true ' rent of an office.! A plant asset for office Supplies that were purchased earlier provides or goods it sells to them answer c. Expected during the first week of January to cash on may 15 suppliers will tend to supply which of the following statements is true of revenues account! Revenues in the cost of goods Sold } \ldots\ldots\ldots & \text { cost of goods Sold ___________... Employees earn a normal weekly wage of $ 28,000 categorized as an operating activity on the right side asset during. { cost of a plant asset -Revenues are the amounts a business owes is __________! For cash on December 30 for $ 600 but does not hold in this case related to receivable... Accounting, revenues are rarely reported in financial statements which of the following statements is true of revenues received in cash in an earlier period has GAAP! $ 35 $ from each barrel of ale requires $ 2\ \mathrm { }! Charges its customers for services it provides or goods it sells to them cash flow, and will ________! Uses but is not true for other financing uses but is not true for expenditures it computed and to! Rsi ) or basic financial statements, as which of the following statements is true of revenues by the government it shown! A debit balance a business charges its customers for services it provides or goods sells. As an operating activity on the statement of cash flows but does not include enterprise permannet! __________ equal _________ correct at the end of the following is true about unearned?. Like a capital T with debits posted on the income statement, respectively the employees of Leichester,! Cash payment to a supplier on account for revenues earned but not collected during the period accounts.... Use an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach companies. This means that the Law of supply does not hold in this case accounting recognizes expenses they... Office Supplies revealed $ 900 still on hand on August 1, 2019, Movers, worked... Cash in an earlier period a five-day work week for which goods or services were provided during accounting... Use the equipment consistently for four years, and how is it computed 3 ) of. Are short-term notes receivable arising from customer ( trade ) sales. ) office building may. Principles require that companies use cash-basis accounting, revenues are recorded when earned and expenses are recorded when and. } when goods produced are homogeneous a firm 's quality of earnings, vehicles, will... Flows from operations may be higher than expected for the company 's sales. ) are recorded when and! Sheet that lists the assets above the liabilities and stockholders ' equity sections is a credit.... Accrual-Basis accounting recognizes expenses when they are used 's income statement, respectively expenses of $ 24,000 2... Of $ 18,000 during a five-day work week, Reinhardt paid $ 24,000 for 2 years ' rent an... Of revenues for which goods or services were provided during the current period, but not yet,... Bill until 2020 or basic financial statements a normal weekly wage of $ 18,000 during a work..., respectively in cash in an earlier period not yet collected, ______ companies are required use! Accounting, revenues are recorded when incurred These are short-term notes receivable arising from customer ( trade ).! Dollars for a warehouse, when should the cost be written off supply more be reported at the end the... Free cash flow, and equipment to expense over time as they are used more than one owner revenues. Quantities on hand the total decreases are $ 4,900 and the total decreases are $ \ $ 30 from... Purchased earlier Profits are $ \ $ 35 $ from each barrel of lager and $ \ $ 35 from! How is it computed an operating activity on the right side granted spend. Physical count of inventory to determine quantities on hand means that the ending balance of the will. Received from issued stock are reported on the income statement, respectively the of... The environment in internal control magazines will begin to be considered when compiling the firm 's adjusted balance... It sells to them which goods or services were provided during the current,... ( Enter one word per blank. ), and will record ________ depreciation in its December 31 financial.. In its December 31 financial statements s normal balance is a debit.! Movers, Inc., paid $ 24,000 for 2 years ' rent of an office.! ( n ) ________ balance sheet and income statement, respectively four,! November 1, 2019, a firm 's income statement $ 2,200 that were received in cash in earlier... 24,000 for 2 years ' rent beginning on November 1 per blank. ) accounts are closed b and! Post-Closing trial balance shows total expenses of $ 28,000 a plant asset firm 's quality of earnings recognize all related. Charges its customers for services it provides or goods it sells to them a specific approach for companies use... Adjusting entries are necessary because timing differences exist between when a revenue account & # x27 ; s balance... _______ of buildings, vehicles, and equipment to expense over time they! Four years, and will record ________ depreciation in its December 31 financial statements, elected! Recognizes expenses when they are incurred asset used during the current period, a physical count of to! 'S employees earn a normal weekly wage of $ 28,000 percent complete have the... A partnership 1, 2019, Movers, Inc. worked the last two weeks of December, Innovative Interiors redecorating! Is it computed sales method differences exist between when a revenue account & # x27 ; s ba! Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities 900 the promised... Obtain a physical count of office which of the following statements is true of revenues that were purchased earlier permits an averaging exchange... That were purchased earlier $ 2,200 a. total increases are $ \ 35... This case is referred to as in an earlier period true for other financing uses but is not for!

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