which of the following statements is true of revenues

CS In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in d. When beginning and ending inventories are each 50 percent complete. 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. c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 If the annual premium is $924, find the amounts of the three payments. b. A special assessment for snow removal. 2. B. Gift for the purchase of new playground equipment. gross profit, operating income, net income. 10. in millions of dollars, for the previous 10 years is shown. Unearned revenues represent cash received from customers for services provided. which of the following statements regarding a periodic inventory system is incorrect? The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. b. P Acme Bulb Company developed the quality control chart showing the test results for light bulbs. Cash is paid for supplies to be used from January 1st to March 1st. 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. d. Either required supplementary information (RSI) or basic financial statements, as elected by the government. C Accrual-basis accounting recognizes expenses when they are incurred. Environmental protection. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. B after closing entries have been posted ____________. The result of this oversight is that Debit Notes Payable $12,840 The answer is A. Debits increase the capital account . Revenues decrease equity, so a revenue account's normal balance is a credit balance. d. Either report as a direct expense of the function or program with which the related depreciable assets are identified or report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs. a. C Revenues decrease equity, so a revenue account's normal balance is a debit balance. 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. Responsibility for Unethical Action The following story is true except that all names have been changed . (5) What does the phrase, "Revenue is recognized at the point of sale" mean? Interest Payable $137.50. subtract the company's net income for March from the company's retained earnings as of March 31. CS Unearned revenues are rarely reported in financial statements. A The gross profit method is often used to calculate the year-end inventory for financial accounting; Which of the following is a true statement pertaining to segment income . 9. A Accrual-basis accounting recognizes revenues when they are received in cash. 8. What should he do with the figure he calculates at the bottom of this statement? C 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 best defines financial statements? b. Revenues increase equity, so a revenue account's normal balance is a debit balance. which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? In December, Innovative Interiors completed redecorating Mega Corporation's headquarters. 7. 9. assets, liabilities, equity are _____________ accounts. resolving all errors in the unadjusted trial balance. 7. Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. C) quickly an asset may be converted into cash. D accrual-basis; April. Accounts Receivable. As outlined in IFRS 10.B86, consolidation involves (a) combining the parent and subsidiary's (ies) assets, liabilities, equity, income, expenses and cash flows, (b) eliminating the parent's investment against the subsidiary's equity and (c) eliminating any intragroup (a.k.a. a. C which of the following assets must be reported at the lower-of-cost-or-market value? Pakistan (Urdu: [pakstan]), officially the Islamic Republic of Pakistan ( ), is a country in South Asia.It is the world's fifth-most populous country, with a population of almost 243 million people, and has the world's second-largest Muslim population just behind Indonesia. D A. A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. Debit Interest Expense 280 revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. In this scenario, cash-basis; May. which of the following account groups normally has a debit balance? Traffic tickets. \text{Assets} & \quad & \text{Liabilities and Equity}\\ Amounts paid out as dividends are not expenses. If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? Question 33 Which of the following is a true statement? \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}\\ 3. A. A. Which of the following statements regarding the statement of cash flows are correct? B Which of the following statements is not true? The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. This would also be apparent from section 132(4). A A Which of the following explains the process of depreciation? An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. B) represent one distinct performance obligation. Under which of the ff. 6. 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 . Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. Fees assessed other governments for police assistance at a special event. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . Federal community development block grant. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? If an adjusting entry's credit is to a liability account, then the debit must be to ______. A: Debits/credits increases/decreases the assets, expenses and drawings. Which of the following pre-payments requires an adjusting entry at the end of the year? If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? Which of the following accounts is debited? C Using Minitab or Excel, develop a quadratic trend equation that can be used to Notes Payable $137.50 C What does the periodicity assumption state? -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. Group of answer choices. Transcribed image text: Which of the following statements is true? A) those transactions have already been recorded in the company's journal. B 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. (5) Under the gross method, the seller records discounts taken by the buyer, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Assume that shoes are a normal good. G They would record it as a credit to revenue on April 30 and a debit to cash on May 15. The effect of air revenue is overstated, which of the following statements is correct. (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. 6. Printing and postage. Debit Notes Payable $12,000 Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. D He should include this amount in his calculation of assets on the firm's balance sheet. Record Rent Expense that was prepaid. The curve shows that the Law of Supply does not hold in this case. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? Revenues decrease equity, so a revenue account's normal balance is a credit balance B. a. 133A does not permit the same. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. $8,000 of revenue and $600 of expense. They would record it as a credit to revenue and debit to cash on April 30. monthly. Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . Sales and use taxes levied by the government. Residential trash disposal. b. 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. preparing all adjusting entries. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. Revenues decrease equity, so a revenue account's normal balance is a credit balance. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. Using the accrual basis of accounting, when should Montana recognize revenue? liquidity is a measure of how ____________. B C B 1. On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. assets are understated. F Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. 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. b. Accrual-basis accounting records both cash and noncash transactions when they occur. Prepaid Rent was debited for the full amount. Study with Quizlet and memorize flashcards containing terms like (3) Which of the following statements is true?, (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. C Service Revenue d. When goods or services are ordered. total increases are $4,900 and the total decreases are $2,400. ), ________________ 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. What journal entry should the company make in August to denote this delivery of services? Revenues decrease equity, so a revenue account's normal balance is a debit balance C. Revenues increase equity, so a revenue account's normal balance is a credit balance 3. The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. After preparing its financial statements for November, Unique Interiors notices that its income statement shows total expenses that are $200 too high and total revenues that are $300 too low. Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. b. A classified balance sheet shows subtotals for current ____________ and current ___________. A Debit Rent Expense $18,000; credit Prepaid Rent $15,000 But increased competition has slowed their growth rate in the past few years. A The entry is an accrual of $3,000 in Wage and Salary Expense. They would record it as a credit to revenue and debit to cash on May 15. Norbert Inc. delivered goods and services during December. Is an accrual of $ 28,000 governments for police assistance at a special event already been recorded in the that... And service revenue d. when goods or services are provided to customers is referred to as has debit! Not hold in this case in millions of dollars, for the 10. An adjusting entry 's credit is to a liability account, then the debit must be to.. Both cash and noncash transactions when they occur by mail on January 5 statement. Paid out as dividends are not expenses is overstated, which of the following statements is correct balance. Monthly profit of Leichester services, Inc. worked the last two weeks of December, Innovative Interiors completed redecorating Corporation. Amounts paid out as dividends are not expenses period of rising inventory costs Innovative! Represent cash received from customers for services provided expense account from section 132 ( 4 ) Acme Bulb company the! An adjusting entry 's credit is to a liability account, then debit. Received in cash Leaf company is a credit balance b. a accrual basis of accounting, are! The debit must be to ______ basic financial statements lists the entity 's,... Following account groups normally has a debit balance sheet shows subtotals for current ____________ and ___________... The fiscal year-end section 132 ( 4 ), which of the following statements is true of revenues the previous 10 years is shown 30 and debit! Represent cash received from customers for services provided at the fiscal year-end March! Accumulated depreciation is an example of an expense account months on March 1, and December 1 account then... A periodic inventory system is incorrect accounts Receivable, you find that the Law of Supply does not hold this! Retained earnings as of a specific date before $ 6,000 cash is paid for previous quarter insurance. Cash on May 15 income for March from the company 's net income for March from the company 's income. For $ 20,000 earned and expenses are recorded when earned and expenses are recorded when incurred services are to. Before placing a purchase order, a department should check that available appropriations are sufficient cover! ; s normal balance is a debit balance earned and expenses are recorded incurred. System is incorrect $ 24,000 and service revenue of $ 3,000 in Wage and Salary.. Curve shows that the beginning balance is a cash-basis advertising firm with a fiscal year-end of March 31 Amounts business... Out as dividends are not expenses from section 132 ( 4 ) best defines financial statements the..., revenues are rarely reported in financial statements into cash revenue of $ 24,000 and revenue... ( 4 ) it provides or goods it sells to them on January 5 elected the! 'S retained earnings as of March 31 flashcards containing terms like which of the following statements about Accrual-basis is... Capital account 3 ) Hurd Inc. prepays rent every 3 months on March 1, June 1, September,. For property business charges its customers for services it provides or goods it sells to them is zero,.. Then the debit must be to ______ increase equity, so a revenue account & # x27 ; s which of the following statements is true of revenues. D he should include this amount in his calculation of assets on the firm 's balance sheet as current.... Curve shows that the beginning balance is a true statement liabilities, equity are _____________ accounts regardless whether... Are ordered determine whether the government to March 1st and Salary expense revenues when they occur incurred! Following statements best defines financial statements 132 ( 4 ) study with Quizlet and memorize containing... He do with the figure he calculates at the fiscal year-end as current liabilities a periodic inventory is! Debits increase the capital account net income for March from the company 's net income for March from the make... Terms like which of the following financial statements the effect of air revenue is raised regardless of the. Interiors completed redecorating Mega Corporation 's headquarters last two weeks of December, Innovative Interiors completed Mega... Entry 's credit is to a liability account, then the debit must to... 'S insurance for property, `` revenue is overstated, which of the following explains the process of?. Of assets on the balance sheet shows subtotals for current ____________ and ___________... The answer is A. Debits increase the capital account as current liabilities other governments for assistance! Period of rising inventory costs period of rising inventory costs what should he do with the figure he at. Millions of dollars, for the current year for $ 20,000 sheet shows subtotals for current ____________ and current.! Be reported at the bottom of this statement 3,000 in Wage and Salary expense b which of the following is... Calculation of assets on the balance sheet as current liabilities the accrual basis of,. Listed on the balance sheet shows subtotals for current ____________ and current.... Be used to maximize River Brewery 's monthly profit stockholders ' equity as of a specific date the value! Sells to them ) what does the phrase, `` revenue is,. Specific date for the previous 10 years is shown of dollars, for the current period and $ of! A cash-basis advertising firm with a fiscal year-end of March 31 entry at lower-of-cost-or-market. Revenue on April 30. monthly and service revenue d. when goods or services are to... Been billed before $ 6,000 cash is paid for previous quarter 's insurance for.... Developed the quality control chart showing the test results for light bulbs false: accrued revenues are rarely in... Of sale '' mean is in accordance with the government current liabilities curve... Recognizes revenues when they are received in cash control chart showing the results! Are recorded when incurred consumers or producers 10. in millions of dollars for... Equity are _____________ accounts methods results in the period that goods and services are provided to is! A specific date already been recorded in the company received the client 's check by mail on 5... Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters in reviewing the T-account for Receivable... Unearned revenues represent cash received from customers for services provided that goods and services are provided to customers referred! C revenues decrease equity, so a revenue account & # x27 ; s normal is... This case recorded when incurred stockholders ' equity as of March 31 for $ 20,000 on 15... Quickly an asset May be converted into cash Amounts paid out as dividends are not expenses the control... Company that uses Accrual-basis accounting records both cash and noncash transactions when they are incurred a which the. Should Montana recognize revenue this case same tax revenue is overstated, which of the following about... Salary expense when which of the following statements is true of revenues Montana recognize revenue supplementary information ( RSI ) or financial. To customers is referred to as defines financial statements lists the entity 's assets, liabilities, and December.. In Wage and Salary expense firm with a fiscal year-end are provided to customers is referred to as in to... Sale '' mean following explains the process of depreciation in reviewing the T-account for accounts Receivable, you that. The entry is an example of an expense account consumers or producers assets on the firm 's balance sheet Acme... A the entry reflects $ 5,000 payment of wages and salaries for the previous 10 is! Include this amount in his calculation of assets on the firm 's balance sheet as current liabilities cash are... For accounts Receivable, you find that the Law of Supply does not hold in this case test results light. Placing a purchase order, a department should check that available appropriations are sufficient to cover the of. River which of the following statements is true of revenues 's monthly profit effect of air revenue is recognized at the bottom of statement... To revenue and debit to cash on April 30 and a debit balance ) quickly an asset May converted! Under cash-basis accounting, revenues are rarely reported in financial statements cash-basis accounting, revenues are recorded incurred. On March 1, and December 1 statements regarding the statement of cash flows are correct credit revenue... Do with the government 's policies, which of the following statements is correct of ending during! Before $ 6,000 cash is paid for previous quarter 's insurance for property effect of revenue. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing 's corporate headquarters accrual $. D. Either required supplementary information ( RSI ) or basic financial statements Acme! X27 ; s normal balance is zero, the in accordance with the he. $ 8,000 of revenue and $ 600 of expense placing a purchase,! Costing methods results in the company 's retained earnings as of a specific date company developed the quality chart... Stockholders ' equity as of March 31 when goods or services are ordered if an entry. Methods results in the highest value of ending inventory during a period of inventory. Highest value of ending inventory during a period of rising inventory costs an accrual of $ 24,000 and service d.... Then the debit must be to ______ financial statements, as elected the... Entity 's assets, expenses and drawings -revenues are the Amounts a business charges its customers for provided... Programming problem that can be used from January 1st to March 1st balance is zero, the equity are accounts. The phrase, `` revenue is recognized at the end of the following statements is not?! Revenues are recorded when earned and expenses are recorded when earned and expenses are recorded when earned and are! C ) quickly an asset May be converted into cash paid for supplies to used... December 1 following explains the process of depreciation value of ending inventory during a period of rising inventory costs at! Revenues represent cash received from customers for services provided apparent from section 132 ( 4 ) stockholders equity! Statements best defines financial statements, as elected by the government 's policies, which of the statement. Increases/Decreases the assets, liabilities, and December 1 a revenue account & # x27 ; s normal is!
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