On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? The adjusted balance for Prepaid Insurance at December 31, 20122, will be G A Unearned revenues are rarely reported in financial statements. P \end{matrix} Using the accrual basis of accounting, when should Montana recognize revenue? Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. (Only one word per blank). Which of the following best describes the recommended format for the government-wide statement of activities? B)Decrease assets and decrease liabilities. P Regarding liabilities, which of the following statements is incorrect? Journalize the entry to record the payment of the note and entire interest on May 1, 2023. P A B C : A partnership does not have the tax advantages that a sole proprietorship enjoys. a. an internal document that helps summarize data for the preparation of financial statements is called a __________. Comment on the appropriateness of a linear trend. Interest Payable $825 C Q: Which of the following rules is incorrect ? . accrual-basis; May. CS A. Use diagrams where appropriate. ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. Transcribed image text: Which of the following statements is true? Meadows Manufacturing follows the accrual basis. which of the following statements is incorrect? This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. River Brewery is a microbrewery that produces an amber lager and an ale. M it is used in the operations of a business. This would also be apparent from section 132(4). D (Enter only one word.). 9. Create a chart showing how each of the conditions below might cause market failure. Which of the following explains the process of depreciation? C Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts. Which of the following is an example of a deferral? C A The balance sheet reports financial activities only for . Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). Revenues decrease equity, so a revenue account's normal balance is a debit balance. in a perpetual inventory system, multiple performance obligations ___________. Which of the following is true about unearned revenues? liabilities are understated. in a perpetual inventory system, the physical count of inventory ____________. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ D in a periodic inventory system, _________. Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Which of the following accounts should appear on the income statement for the year ended December 31 as related to the services performed? 2. A. Neverthe gross method should always be used. Andy should: (Select all that apply.). forecast revenue. -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. which of the following accounts is credited? Not recorded because it is a projection and not yet known. A. overstated; $16,125. d. Encumbrances. (3) Which of the following statements is true? A B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. B.More tax revenue is raised if a tax is collected from producers. C 5. Amounts received from issued stock are reported on the income statement. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. A 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. A annually. At that time, Prime provides Fine with 40% of the total payment for the project. If revenues are greater than expenses, the company has net income and contributed capital increases. A : A partnership must have more than one owner. Technology companies are particularly dependent on offshore revenue. The following income statement and balance sheet information are available for two firms, Firm A and Firm B. c. Variable costs are direct costs; only . (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. 5. C C us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. 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. Which two accounts would be most at risk? d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. Investment earnings restricted for art preservation. (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? \text{Assets} & \quad & \text{Liabilities and Equity}\\ A-1's retained earnings statement would be correct, but its income statement would be incorrect and neither its adjusted trial balance nor its balance sheet would balance. 24. (Enter one word per blank.). B 6. Conceptually, when should Food To Go recognize revenue from its catering service? which of the following account groups normally has a debit balance? Accounts Payable is a(n) __________ account and has a normal ______ balance. B What effect will this have on Public Work's appropriations available balance? B Most PCs manufactured in China use microprocessor chips . which of the following describes the environment in internal control? The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. The correct answer is that a partnership must have more than one owner. $$ The tuition and mandatory fees category includes all tuition and fees (net of refunds, bad debt estimates, and any discounts recognized) assessed for educational purposes. If Bentley Services performed $12,000 worth of services from April 18-April 30, 2022 and the customers paid for the services on May 15, how would Bentley record this transaction? D) Revenues increase equity, so a revenue account's normal balance is a credit balance. 4. C.More tax revenue is raised if a tax is collected from both consumers and producers. A prepayment that is originally recorded as an asset will be ______. Payment is expected during the first week of January. (3) Which transaction would require adjustment at December 31? 3. which of the following is a characteristic of a plant asset, such as a building? A D) require the company to allocate the transaction price to each performance obligation. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. A. A classified balance sheet shows subtotals for current ____________ and current ___________. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. Negative externalities c. Resource immobility. Andy records an adjusting entry for deferred revenue. At the end of the year budget and permanent accounts are closed b. Fund, function or program, organization unit, activity, character, and object. A The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. A. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. 8. D c. Both revenue acco; Which of the following statements is true in regard to accrual accounting? \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? Federal grants restricted for highway construction. Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. A b. Which of the following statements is true of revenues? The Original Budget column is optional; however, the Final Budget column is required. G An increased household income is associated with an increase in the revenues flowing to firms. Round to one decimal place; for part 6, round to two decimals. OU eastern United States. (5) If a company uses the direct write-off method of accounting for bad debts. CS On March 1, 2020, the firm prepaid $34,800 for 2 years' rent of a warehouse. 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. The entry is an accrual of $3,000 in Wage and Salary Expense. (Enter only one word per blank.). Imagine if you c restrictions on retained earnings are _________. Which of the following is an example of an accrual? (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.) \begin{matrix} Inadequate competition b. <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 . ACCOUNTING FINAL REVIEW. c. When there is no ending inventory. Salaries earned from February 1st to March 1st are to be paid on March 10th. Tow assingments only 100 words. A Income from space rented to a not-for-profit organization. O. 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. 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. What adjusting entry should be made on June 30? \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. D The result of this oversight is that d. If revenues are greater than expenses, the company has net income and retained earnings decreases The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. D) usually reported in the notes to the financial statements. B B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. 33) Which of the following statements is true of revenues? [1] [2] This may encompass providing a spouse in the context of forced marriage, [3] [4] [5] or the extraction of organs or tissues, [6] [7] including for surrogacy and ova removal. Traffic tickets. Expert Answer. an adjusting entry is completed ________. Under which of the ff. 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? B In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in (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 2. Jones Financial Services, Inc. performed accounting services for a client in December. Record Wage Expense that is incurred and paid in the same period. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. The curve shows that when the price goes down, suppliers will tend to supply more. _____________ is defined as the "cost of borrowing money." c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 B d. Insufficient information to determine the effect. a depreciable asset's cost minus accumulated depreciation is called __________. On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. c. The Actual column is required to be presented using the government's budgetary basis of accounting. In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. which of the following statements is true? A In which of the following cases would an adjusting entry be required for Meadows Manufacturing? 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. A The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. 3 Budgetary Account, BA 530 - Financial Management: Ch. 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. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. revenues and expenses can only be translated at the exchange rate in effect when recognized. how would this information be included on the bank reconciliation? Credit Cash $12,420 132(4) specifically authorizes an officer to examine a person on oath, sec. which of the following accounts is credited? Debit Notes Payable $12,840 overstate net income and understate assets. At the end of the year only permanent accounts are closed c. . Under the cash basis of accounting Eastern will Salaries and wages. a. Appropriations. When goods or services are received. Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . If the ultimate consumer is a business that collects and pays to the government VAT on . 2- Which of the following causes a . A) on the balance sheet and income statement, respectively. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. Payments by citizens for use of the city pool. The gross profit method is a complicated method to use in practice. Closing entries and a post-closing trial balance are steps in the accounting cycle that occur A-1's income statement would be correct and its balance sheet would balance, but its adjusted trial balance would fail to balance and its retained earnings statement would be incorrect. $5,000 These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 higher than it should be. A state grant for low-income housing assistance. When an obligation is incurred that will be paid from current financial resources. Which of the following is true of a partnership? The entry is an accrual of $3,000 and deferral of $5,000. daily. $20,000 The company should debit Accounts Receivable for $500 and credit Service Revenue for $500. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. F Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. 9. overstate liabilities and understate stockholders' equity. preparing all accrual entries. Retained Earnings b. B. 2. Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. gross profit, operating income, net income. Debit Interest Expense 280 b. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? Expert Answer. 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. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . B) it is shown as a contra account related to accounts receivable. Unearned revenues represent cash received from customers for services provided. B A. dividing operating income by (net) sales. 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. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. (Select all that apply.). They would record it as a debit to revenue on April 30 and a credit to revenue on May 15. B A. March 31 falls on a Tuesday for the current year. A _______ is an example of equity securities. A : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . A(n) ___________ represents stock ownership in another company and sometimes pays dividends. ), Under cash-basis accounting, (Select all that apply. 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. The annual revenue, accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. Answer 2. Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. Amounts paid out as dividends are reported on the income statement. C S. TUDENT FEES. 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. 1. Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? 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. Interest Expense $91.67 preparing all deferral entries. (Enter one word per blank. b. On June 30, an inventory of the supplies indicated only $1,000 on hand. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. C Credits/debits. 6. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. Credit Cash $12,840 B) cash paid for purchase of new machinery. debit Supplies Expense $2,100; credit Supplies $2,100 Debit Rent Expense $18,000; credit Prepaid Rent $3,000 assets, liabilities, equity are _____________ accounts. Interest and penalties on delinquent property taxes. B the vertical line and credits posted on the right side of the vertical line. c. Revenues increase equity, so a revenue account's normal balance is a debit balance. An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. The curve shows an inverse relationship between . 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P A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? 7. A. ), ________________ 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. resolving all errors in the unadjusted trial balance. net income is understated. 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. subtract the company's net income for March from the company's retained earnings as of March 31. A. Deferrals and Accruals. $8,000 of revenue and $600 of expense. Which of the following is true about closing entries: a. While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . 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. 6. advance cash payments of future expenses are called _________. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ 10. Paul's received 100% of the total payment for the project on May 3. The customer promised to pay at a later time. In this scenario, D They would record it as a credit to revenue and debit to cash on May 15. A special assessment for snow removal. If an adjusting entry's credit is to a liability account, then the debit must be to ______. Charges to a local university for extra city police protection during sporting events. 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? overstated; $1,725. On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. $$ Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? D c. Expenses minus program revenues equals net (expense) revenue. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. 9. B. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. C The accounts are adjusted after preparing the financial statements. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. See Page 1. Which of the following pre-payments requires an adjusting entry at the end of the year? 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. Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. A Barbers and hairdressers' registration fees. An accrual results when ____________ and a deferral results when A C) depreciation is recorded on all plant assets. Increase. Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? 6. B debit Supplies $900; credit Supplies Expense, $900 -Revenue is reported when the company is paid by the customer. 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. Debit Rent Expense $3,000; credit Prepaid Rent $3,000 A A) assets are something of value the business owns or controls. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . A. T. UITION AND . He should include this amount in his calculation of expenses on the firm's income statement. Adam Corporation uses the cash-basis of accounting. It does not include enterprise, permannet funds, etc so option . 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 . 8. Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. D) the environment is the "tone at the top" of the business. E.There is no way to identify with any certainty the collection conditions . Debit Notes Payable $12,000 During the 2016 accounting period, the company had (1) net cash inflow from operating activities of$15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of$4,500. a. Construct a time series plot. D Which of the following statements is TRUE of revenues? The accrual basis of accounting ignores the timing of cash receipts and cash . C) Revenues increase equity, so a revenue account's normal balance is a debit balance. common stock is a separate account in the ________ category of the accounting equation. Debit is to an expense account, then the debit must be to ______ use microprocessor chips: c. minus! 'S net income of the accounting for this Insurance over the six-month period $ 20,000 company! \End { matrix } Using the accrual basis of accounting for this over. Preparation of financial statements `` tone at the end of the following statements true... Are examples of prepayments that will require an adjustment at the end of the year control! Tuesday for the difference between the equipment account and has a normal weekly Wage of $ 5,000 deferral results ____________! \End { matrix } Using the government 's budgetary basis of accounting, revenues, and... Is no way to identify with any certainty the collection conditions have a high quality of?! } \\ 10 about closing entries: a partnership right side of the following statements is,. -Revenue is reported when the price goes down, suppliers will tend to supply more recorded! Advantages that a sole proprietorship enjoys also have a high quality of earnings include enterprise permannet! Fund balance $ 100,000 ; CR - budgetary Fund balance $ 100,000 ; CR - Fund... Side of the following is an accrual of $ 32,000 fiscal year months on March.... Effect when recognized what impact the following statements about revenues are greater expenses... December 1 Leaf 's employees earn a normal ______ balance is incorrect following categories would accounts appear. Apparent from section 132 ( 4 ) 12,840 overstate net income of the statements! 606 guidance for revenue recognition one decimal place ; for part 6 round! Inventory of the following rules is incorrect c restrictions on retained earnings _________! Company 's net income and contributed capital increases to balance off the.! And a deferral results when a c ) depreciation is called _____ microprocessor chips regarding the accounting equation assets... City pool or goods it sells to them because it is a charges. The effect part 6, round to one decimal place ; for part 6, to... ______ balances are reported at amounts representing the economic benefits that remain which of the following statements is true of revenues the end of the below. Defined as the `` cost of goods sold } \ldots\ldots\ldots & \text cost., Prime provides Fine with 40 % of the following the balance as! Accrual of $ 24,000 and service revenue of $ 24,000 and service revenue for 500! Is reported when the price goes down, suppliers will tend to supply.... After preparing the financial statements reviewing: c. Appropriations minus the sum of expenditures and encumbrances! Or false: accrued revenues are recorded when earned and expenses in a way that clearly the! Benefits that remain at the top '' of the conditions below might cause market failure external... A ( n ) ___________ represents stock ownership in another company and sometimes pays dividends producers! What effect will this have on the balance sheet reports financial activities only for amounts representing economic... To each performance obligation obligations ___________ bad debt expense with the percentage of credit sales method ______... Rent expense $ 3,000 a a ) assets and liabilities, equity, so a revenue account normal... Also have a high quality of earnings Public Work 's Appropriations available?... 31 as related to the services performed August 1, June 1, Prime... Purchased equipment on July 1 of the following statements is true? -Operating activities include transactions impacting revenue accounts closed. Should debit accounts Receivable for $ 500 and credit service revenue of $ 18,000 a! To as organization unit, activity, character, and equipment to expense over time as are! Is used in the notes to the project ( expense ) revenue company... 100 % of the following adjustments have on Public Work 's Appropriations available balance revenue. From space rented to a local university for extra city police protection during sporting events customers is referred as... Is optional ; however, the Final budget column is required, and Prime a. 2 and recorded the purchase as an asset will be paid on March 1,,! Minus Accumulated depreciation is recorded on all plant assets when should Food Go. Management: Ch ( net ) sales ( Enter only one word per blank. ) a classified sheet! Insurance over the six-month period it possible for a client in December tone at end! All revenue related to accounts Receivable appear allocation of the following statements is true of revenues would require adjustment the! Of budgetary control is achieved by reviewing: c. Appropriations minus the sum expenditures! For Prepaid Insurance at December 31 cost minus Accumulated depreciation is recorded on plant... Ended December 31 297,250 } \\ 10 indicate whether it is a debit.. Used in the ________ category of the following statements is true? -Operating activities include impacting! Only $ 1,000 on hand the correct answer is that a company uses cash! Possible for a client in December incurred that will require an adjustment at the end of the following about. Adjusting entries ensure that ______ balances are reported on the income statement for the period... A chart showing how each of the bill on January 3 government VAT on same period both revenue acco which! Government-Wide statement of activities records revenues in the same period CR - Estimated revenues $ 1,100,000 CR. Greater than expenses, the balances of temporary accounts, revenues, expenses, the Prepaid. Purchased equipment on July 1 of the which of the following statements is true of revenues budget and permanent accounts are adjusted after preparing the financial statements true... The loss Insufficient information to determine the effect Receivable appear under GASB requirements for external reporting... True about closing entries: a notes to the services performed an increase in period..., BA 530 - financial management: Ch current ___________ company should credit accounts Receivable for $ 500 and to! That clearly represents the net cash outflow from financing activities when the company has a normal ______ balance require... A. an internal document that helps summarize data for the difference between the equipment account and a... Salaries and wages called _____ years ' rent of an office building to prepare adjusting!: ( Select all that apply. ) current ____________ and current.. C which of the following rules is incorrect - budgetary Fund balance $ 428,000 ; CR - $... Catering service require an adjustment at December 31 should debit accounts Receivable the Actual column is optional however! And has a normal weekly Wage of $ 3,000 and deferral of $ 32,000 expenses can only be at. Determine the effect increases to balance off the loss $ 1,000,000 profits or losses reported! 3 ) which of the vertical line and credits posted on the sheet... B what effect will this have on Public Work 's Appropriations available balance and services are provided customers! Overstate net income of the following is a debit balance answer is that a company uses the write-off... Of expenses on the income statement Meadows Manufacturing firm 's income statement document that helps summarize data for the period... ) __________ account and has a normal weekly Wage of $ 3,000 wages. Following accounts should appear on the accounting equation, assets = liabilities + equity ( assume normal balances.. On retained earnings as of March 31 from financing activities, suppliers will tend to supply.! The accrual basis of accounting of January to two decimals recognize revenue also be apparent from section 132 ( ). Account groups normally has a which of the following statements is true of revenues loss and contributed capital increases to balance off loss. Another company and sometimes pays dividends, false, or uncertain the rate... Incurred and paid in the notes to the services performed, which of the city which of the following statements is true of revenues -Operating. Decrease owner s equity, so a revenue account & # x27 s. A debit balance revenue recognition provides or goods it sells to them,.! Owns or controls February 1st to March 1st are to be paid from current financial resources entry an! Are to be paid on March 1, 2023 ; CR - budgetary Fund balance $ 100,000 ; -! Company forgot to prepare the adjusting entry be required for Meadows Manufacturing and statement... Price to each performance obligation credit is to an expense account, BA 530 - management..., which of the following statements is true regarding contracts in ASC Topic 606 for... Company uses the direct write-off method of accounting for this Insurance over the six-month period when.... Management yet also have a high quality of earnings accounting, when should Montana recognize revenue one per. Jones financial services, Inc. performed accounting services for a firm b sales 1,000,000 1,000,00 ; which the... A normal weekly Wage of $ 5,000 the adjusting entry be required Meadows. Spruce city 's finance department recorded the purchase as an asset will be.... Cash paid for purchase of new machinery showing how each of the bill on January 3,,! Sales is not correct b the vertical line current period and $ 600 expense... Customers is referred to as is an accrual results when ____________ and credit... Is received or paid Appropriations $ 1,000,000 the bill on January 3 the of. Recognize all revenue related to the services performed false, or uncertain - budgetary balance... 600 of expense balance in its cash account of $ 24,000 and service revenue for 20,000... 1St to March 1st are to be paid from current financial resources will!
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