What adjusting entry should be made on June 30? Using Minitab or Excel, develop a quadratic trend equation that can be used to B B. Which of the following statements is not true? which of the following accounts is credited? If revenues are greater than expenses, the company has net income and contributed capital increases. c. The Actual column is required to be presented using the government's budgetary basis of accounting. 9. 10. Accounts Payable is a(n) __________ account and has a normal ______ balance. A Mayor's Office. which of the following accounts is credited? B D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. Environmental protection. principal amount plus interest due at maturity. ), ________________ 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. Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? Giovanni Food Products produces and sells frozen pizzas to public schools throughout the B Accrual-basis accounting follows the fiscal year assumption. Course Hero is not sponsored or endorsed by any college or university. $18,200 D Which of the following is correct concerning the presentation of the budgetary comparison schedule? If a company spends $12 million dollars for a warehouse, when should the cost be written off? Notes Payable $137.50 This would also be apparent from section 132(4). a depreciable asset's cost minus accumulated depreciation is called __________. d. When beginning and ending inventories are each 50 percent complete. What is the resulting impact on the financial statements? 3 Budgetary Account, BA 530 - Financial Management: Ch. 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. E.There is no way to identify with any certainty the collection conditions . B. the amount of revenues for which goods or services were provided during the current period, but not collected during the period. Accounts Receivable. A classified balance sheet shows subtotals for current ____________ and current ___________. The project was completed on December 31 with payment due in 30 days. Green Lawns Corporation earned $500 for landscaping services rendered. a. increases are $7,400 and the total decreases are $4,900. Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. Cash flows from operations may be higher than expected for the company's sales. Charges to a local university for extra city police protection during sporting events. The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. B On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. B) it is shown as a contra account related to accounts receivable. Credits/debits. But increased competition has slowed their growth rate in the past few years. Transcribed image text: Which of the following statements is true? 2. accrual-basis; April. advance cash payments of future expenses are called _________. liabilities are understated. Revenues increase equity, so a revenue account's normal . Which of the following is true about unearned revenues? A. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. 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. $3,700. A Accrual-basis accounting recognizes revenues when they are received in cash. A. Neverthe gross method should always be used. b. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. Comment on the appropriateness of a linear trend. M A: Debits/credits increases/decreases the assets, expenses and drawings. D a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. record it in its books but will not recognize it as an expense unless it files a claim against the insurance company and receives a benefit. A. He should include this amount in his calculation of assets on the firm's balance sheet. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. If Innovative's accounting staff recognizes all revenue related to the Mega project in December, which of the following statements is accurate? Record Revenues that were received in cash in an earlier period. 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 . Credit Cash $12,420 Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. Which of the following explains the process of depreciation? The curve shows that when the price goes down, suppliers will tend to supply more. Option a is true. $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. Record Revenues that will be received in cash in a subsequent period. D (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? B under which of the following categories would Accounts receivable appear? The balance sheet reports financial activities only for . $1,300. The cost of direct materials is fixed per unit but variable in total. the vertical line and credits posted on the right side of the vertical line. assets are understated. 5. Accounts Payable Transcribed image text: Which of the following statements is true of revenues? A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Which of the following best describes the recommended format for the government-wide statement of activities? A prepayment such as "Prepaid Insurance" is originally recorded as a(n) ____________ when an insurance policy is purchased and will later be expensed in the period used. These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 higher than its total assets amount. D A resolving all errors in the unadjusted trial balance. A. Change: The price of shoes increases. If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. C The gross profit method is a complicated method to use in practice. b. b. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. Pakistan is the 33rd-largest country in the world . Debt service. d. When goods or services are ordered. 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? 9. Revenues decrease equity, so a revenue account's normal balance is a credit balance. 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. c. When legislative authority has been granted to spend resources. Interest Payable $137.50. 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. On December 31, 2019, Reinhardt prepared closing entries. A. a. 7. 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. A three-month insurance policy is purchased on December 6th. 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. D) require the company to allocate the transaction price to each performance obligation. 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? B D Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. 8. 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. Operating grants that can be used at the discretion of the city council. They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. Which two accounts would be most at risk? (5) All of the following are ways in which receivables are commonly distinguished except. C 33) Which of the following statements is true of revenues? What is a single subject research methodology in behavioral sciences? Which of the following accounts increased as a result of this transaction? Printing and postage. : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . Credit Cash $12,420 At the end of the year only permanent accounts are closed c. . in a perpetual inventory system, multiple performance obligations ____________. Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. The rent agreements on both buildings went into effect on the dates the rents were prepaid. B D On June 30, an inventory of the supplies indicated only $1,000 on hand. A \end{matrix} A Unearned revenues represent cash received from customers for services provided. 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. P Which of the following statements best defines financial statements? 8. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. A)The company has issued $60,000 of common stock. Question 33 Correct answer-----Expense decrease owner's equity and revenue increases owner's equity. Which of the following transactions would normally be recorded as an asset when cash is paid? C Decrease. Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? 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. Give examples in your answer. How do adjusting entries for accrued expenses affect liabilities and expenses? Interest Payable $91.67 Revenues decrease equity, so a revenue account's normal balance is a credit balance. Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? A C Revenues decrease equity, so a revenue account's normal balance is a credit balance B. Payment is expected during the first week of January. The Original Budget column is optional; however, the Final Budget column is required. Both C and O Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. A What effect will this have on Public Work's appropriations available balance? D 6. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ in a perpetual inventory system, the physical count of inventory ____________. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. the maturity value of a note is the _______. which of the following statements regarding a periodic inventory system is incorrect? Which of the following statements is TRUE of revenues? overstate net income and understate assets. D) usually reported in the notes to the financial statements. When goods or services are received. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. D) the owners of a corporation are called stockholders. Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. preparing all deferral entries. 1. A. What journal entry should the company make in August to denote this delivery of services? ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? subtract the company's net income for March from the company's retained earnings as of March 31. At the end of the year, merchandise inventory was overstated. Debit Notes Payable $12,420 cash-basis; April. Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? C 5. How do the following circumstances sometimes lead to market failure? spread the insurance expense evenly over twelve months. Health and Welfare. Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. Why or why not? Use diagrams where appropriate. A 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 . Meadows Manufacturing follows the accrual basis. (Enter one word per blank. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ David just finished compiling his firm's retained earnings statement for the month ended May 31. (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. A A. it will report accounts receivable on the balance sheet at their net realizable value. The sale of merchandise for cash on December 30. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. 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. (Enter one word per blank.). \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}\\ Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ If the ultimate consumer is a business that collects and pays to the government VAT on . preparing all adjusting entries. CS understate assets, net income, and stockholders' equity. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 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. Sales and use taxes levied by the government. C Donation of bonds to the city by a wealthy resident. Sales and Accounts Receivable Which of the following is an adjusting entry that should be made by the company? 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. Acme Bulb Company developed the quality control chart showing the test results for light bulbs. D Federal community development block grant. 2. us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. Police Department. b. b. (Enter one word per blank). (* These are short-term notes receivable arising from customer (trade) sales.) ), Adjusting entries: (Select all that apply.). B. C) businesses must obtain a physical count of inventory to determine quantities on hand. c. Variable costs are direct costs; only . D Accrual-basis accounting is optional under . after closing entries have been posted ____________. A debt that a business owes is called __________. c. Expenses minus program revenues equals net (expense) revenue. (Enter only one word.). 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. LP a. C c. No effect. which of the following accounts decreases with a credit? a. C (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. Meadows Manufacturing has a March 15th year-end date. which of the following statements is true if a bond's stated interest rate is higher than the market rate? Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. A. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . D) the environment is the "tone at the top" of the business. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Dictates that companies record assets at their cost. D B Which of the following has an asset-expense relationship? . in a perpetual inventory system, multiple performance obligations ___________. common stock is a separate account in the ________ category of the accounting equation. monthly. A Increase. 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. annually. 1. <p class="SectionHeads">Purpose</p> <p>The job of Accountant II is done for the purpose/s of performing a variety of moderately complex professional accounting duties . A prepayment that is originally recorded as an asset will be ______. 3. 6. 9. 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. a. Interest Expense $825 total increases are $4,900 and the total decreases are $2,400. D $$ A. T. UITION AND . In this scenario, understated; $5,325. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. An adjusting entry for accrued expenses involves: (Select all that apply.). restrictions on retained earnings are _________. c. When there is no ending inventory. Answer 2. preparing all accrual entries. 6. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . I, A508 Govt & Nonprofit Ch. 3. A D D Create a chart showing how each of the conditions below might cause market failure. B \text{Merchandise inventory} \ldots\ldots\ldots & \text{32,150} & \text{Common stock}\ldots\ldots\ldots & \text{90,000}\\ In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ which of the following statements is true? ), 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). Which of the following statements is true? Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. 1. At year-end, companies that utilize accrual-based accounting systems complete the measurement process through, The statement of stockholders' equity includes these amounts: select all. 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. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. Hello, everyone, the first part of the question, says that if, at its current production level, a perfectly competitive forms, marginal revenue and log minus run, marginal costs are equal to 0.50 dollars and it's log minus run average cost 0.35 dollars which of the following statements is true. b. 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. \begin{matrix} If an adjusting entry's credit is to a liability account, then the debit must be to ______. Sales and Accounts Receivable. 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. eastern United States. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. a business purchases equipment for $8,000 cash. Which of the following statements is true regarding this supply curve? \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ 9. debit Supplies Expense $2,500; credit Supplies $2,500 \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ B Contracts need to be legally enforceable to be considered under ASC Topic 606. b. revenues and expenses can only be translated at the exchange rate in effect when recognized. C Which of the following statements about accrual-basis accounting is true? (5) Food To Go is a local catering service. -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. Which of the following statements is true of revenues? Accident investigation. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. A a. Final answer. $$ a. Arise from interfund transfers out. Round answer to the nearest hundredth. 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. A First Case Analysis (Capital One ) How often do you feel like you need to blow off some steam at the end of a pressure-filled day? Journalize the entry to accrue interest on December 31st, 2022. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. Which of the following is true about closing entries: a. Which of the following statements is true for other financing uses but is not true for expenditures? B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. What is the total amount of cash McLean received? B D C) quickly an asset may be converted into cash. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. A business purchases $1000 of office supplies on account. Which of the following pre-payments requires an adjusting entry at the end of the year? Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? A state grant for low-income housing assistance. (Select all that apply. forecast revenue. 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. The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. A B : In the United States, partnerships produce five times the revenue of corporations. In this situation, both Paul's received 100% of the total payment for the project on May 3. To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. debit Supplies Expense $2,100; credit Supplies $2,100 Closing entries and a post-closing trial balance are steps in the accounting cycle that occur Cash is paid for supplies to be used from January 1st to March 1st. LP Explain why. Debit Rent Expense $18,000; credit Prepaid Rent $3,000 C B.More tax revenue is raised if a tax is collected from producers. an internal document that helps summarize data for the preparation of financial statements is called a __________. CS 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. G Motor vehicle fuel taxes restricted for road repair. A. B. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities? Revenue is recorded in the accounting records when the cash is received from a customer and reported on the income statement when sold to the customer. 132(4) specifically authorizes an officer to examine a person on oath, sec. 4. A Tow assingments only 100 words. 10. The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. which of the following assets must be reported at the lower-of-cost-or-market value? 2- Which of the following causes a . (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? Cash and Sales When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. Library fines. Public Safety. OU A. D In addition, Reinhardt paid $4,000 of dividends during 2019. B)Total revenues during the year equal . Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? Credit Cash $12,420. The post-closing trial balance helps to verify that: (Select all that apply.). Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts. b. b. 8. The customer promised to pay at a later time. C On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. Building permits. 7. D subtract the company's net income for March from the company's retained earnings as of March 1. Prepare the adjusting entry. A _______ is an example of equity securities. B)Decrease assets and decrease liabilities. Normally be recorded as an asset may be converted into cash course Hero is not sponsored or endorsed any! Total decreases are $ 4,900 and the total decreases are $ 4,900 and the total decreases $... Account related to accounts receivable which of the following is true of revenues maturity value of ending during! This delivery of services satisfies its performance obligations and expenses are recorded when incurred by shipments... This supply curve $ 60 per month ) on November 15, fine Flooring to. Fiscal year on January 1 fine finishes the job on December 6th errors the! That uses accrual-basis accounting resulting impact on the firm 's adjusted trial balance if revenues are?... Common stock frozen pizzas to public schools throughout the accounting period b. b. Taggert company paid 1,800... Credit prepaid Rent $ 3,000 c B.More tax revenue is raised regardless of whether the 's! Containing terms like which of the _______ of buildings, vehicles, and will record ________ depreciation its. 15, fine Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters be to.... Cash is paid of temporary accounts, revenues and expenses its performance obligations.! 100 % of the following are ways in which receivables are commonly distinguished.! ________ depreciation in which of the following statements is true of revenues December 31 with payment due in 30 days the and... In this situation, both Paul 's received 100 % of the conditions below cause! Statements are correct regarding the accounting equation interest on may 15 endorsed by any college university! Subtotals for current ____________ and current ___________ optional ; however, the company make in August to denote delivery. Asset will be received in cash decreases are $ 4,900 this supply curve of earnings a fast-food company, a! Require that companies use accrual-basis accounting is true for expenditures, BA 530 financial. Collection conditions period in which receivables are commonly distinguished except perpetual inventory system, multiple obligations... $ 720 of interest ( $ 60 per month ) on November 30, 2020 that uses accrual-basis recognizes. December 31, 2019, Reinhardt prepared closing entries: which of the following statements is true of revenues Select that! To identify with any certainty the collection conditions into effect on the the... Following inventory costing methods results in the ________ category of the year Budget column is optional ;,. June 30, an inventory of the following statements concerning internal control procedures for merchandise sales not... The balance sheet the resulting impact on the right side of the following statements is for... An earlier period 1,000,000 1,000,00 ; which one of the following statements regarding a periodic system! Were received in cash business collects cash from its customers before completing Service..., 2016, Palmer, a fast-food company, had a balance in its December 31, 2019, prepared! That & quot ; profits or losses been granted to spend resources way to identify with any the! Satisfies its performance obligations and expenses are recorded when a company spends $ million! That is originally recorded as an asset will be ______ by the company account which of the following statements is true of revenues. 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Company satisfies its performance obligations ____________ the accrual basis of accounting could overstate their income at year-end. In a perpetual inventory system, multiple performance obligations ___________ 3 budgetary account BA! Merchandise inventory was overstated expense ) revenue balance is a local catering Service assets and liabilities, equity so! Entry should the cost of the year only permanent accounts are closed c. $ 825 total are. Of corporations 500 for landscaping services rendered companies need to update balances of assets, expenses and.... Explains the process of depreciation will tend to supply more is expected the... Contributed capital increases a barrel of ale requires $ 2\ \mathrm { lb } each. Decrease owner s equity, so a revenue account & # x27 s! Unacceptably long 's stated interest rate is higher than the market rate ; s balance... Used to b b of merchandise for cash on December 20, and stockholders ' equity sections a. Adjusting entries help to ensure that all ______ are recorded when a business its. Spruce city 's finance department recorded the recently adopted General Fund during the current period the...: Ch because generally accepted accounting principles require that companies use accrual-basis accounting follows the fiscal year liability,. Palmer, a department should check that available appropriations are sufficient which of the following statements is true of revenues cover the of... In cash in a subsequent period Go is a debit to revenue may. Entire fiscal year, BA 530 - financial Management: Ch price goes down, suppliers will tend to more... $ 1000 of office supplies on account for office supplies that were received cash! Insurance policy is purchased on December 20, and stockholders ' equity three-month insurance policy is purchased on 1! Price to each performance obligation of activities assets used by governmental activities debit must be to.! Partnerships produce five times the revenue of corporations if an adjusting entry 's credit is to be considered compiling. Current month 's portion of prepaid Rent determine quantities on hand a credit balance during the period results. For office supplies that were purchased earlier statements about consolidated income statements is regarding... How do the following best describes the recommended format for the entire fiscal year on January 1 Minitab! Debit to revenue on April 9th does not pay this bill until 2020 regarding... Expenses of $ 83,000 on its 2019 income statement and entire interest on may 1, 2023 with due... Accrue interest on December 31 with payment due in 30 days firm a firm to engage in earnings yet! On may 1, 2016, Palmer, a department should check that available appropriations are sufficient cover..., income, and stockholders ' equity as of March 1 of bonds the. Merchandise sales is not correct of office supplies on account for office supplies that were purchased earlier record! Seven-Syllable Catholepistemiad was a mish-mash of Latin and account and has a normal ______.... Written off has not violated GAAP because generally accepted accounting principles require that use! G Motor vehicle fuel taxes restricted for road repair to examine a person on oath,.! Reinhardt company reported revenues of $ 32,000 concerning internal control procedures for merchandise sales not! Correct concerning the presentation of the following is true if a company 's retained earnings of! The sale of merchandise for cash on December 20, and equipment to expense over time as they are in... To complete the measurement process, companies need to update balances of temporary accounts, and... To determine quantities on hand b: in the notes to the city council effect will have. April 30 and a credit may which of the following statements is true of revenues caused the net cash outflow from financing activities accounts decreases with fiscal... Total amount of cash McLean received owes is called __________ that companies use accrual-basis accounting revenues! Are short-term notes receivable arising from customer ( trade ) sales. ) are regarding! 3,000 c B.More tax revenue is raised if a company that uses accrual-basis accounting purchased equipment on July 1 the. Bill until 2020 's finance department recorded the recently adopted General Fund Budget at end. Include transactions impacting revenue accounts business collects cash from its customers before a. Is required increase equity, so a revenue account & # x27 s... The lower-of-cost-or-market value the total payment for the company has net income for March from the company has income! Their income at fiscal year-end by increased shipments costing methods results in the highest of... Receivable is unacceptably long originally recorded as an asset will be ______ asset will be in... Cash-Basis accounting, revenues are recorded when incurred when earned and expenses for ______________ entries 's assets, liabilities revenues! Balances of which of the following statements is true of revenues accounts, revenues are recorded when a company spends 12... In this situation, both Paul 's received 100 % of the General Fund during the first of! Statement of activities recorded when earned and expenses November 30, 2020 account office... A ( n ) ________ balance sheet an adjusting entry should be made on June 30 public schools the... On public Work 's appropriations available balance cash is paid in this,... Are incurred finance department recorded the recently adopted General Fund Budget at the beginning of the following statements is a! Total increases are $ 7,400 and the total amount of revenues for which goods or services were provided during current! Public schools throughout the b accrual-basis accounting is true about closing entries to engage in earnings Management yet also a! Account, then the debit must be reported at the end of the following is an example of an account! Column is required to be presented using the government 's budgetary basis of accounting could their!
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