Unearned revenues are reported on the Income Statement. A(n) ___________ represents stock ownership in another company and sometimes pays dividends. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. A) assets are something of value the business owns or controls. B)Total revenues during the year equal . Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. 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 . An accrual results when ____________ and a deferral results when B.More tax revenue is raised if a tax is collected from producers. A Closing entries move the balances from the ______ accounts into the Retained Earnings account. If a company using accrual-basis accounting wanted to overstate their income at the end of the fiscal year with increased shipments, the two accounts that would be most at risk are 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. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. If revenues are greater than expenses, the company has net income and contributed capital increases. The result of this oversight is that C Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? Option a is true. which of the following accounting methods is used to account for controlling interest investments? 6. \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ An accurate estimate of bad debt expense may be arrived at by multiplying historical bad debt rates by the amount of credit sales made during a period. Your pie chart must be wrong, because you have the 45%45 \%45% frequency wedge near the upper left and the answer key shows it near the lower right. 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. 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. Answer 2. D C $0. 8. What should he do with the figure he calculates at the bottom of this statement? 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. C Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. A)The company has issued $60,000 of common stock. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. S. TUDENT FEES. A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. (Only one word per blank). In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. The post-closing trial balance helps to verify that: (Select all that apply.). a. Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. of the vertical line and credits posted on the left side of the vertical line. 133A does not permit the same. 1. Accounts Receivable. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? Which of the following best identifies when an encumbrance is recorded? A Revenues increase equity, so a revenue account's normal balance is a debit balance. Revenues decrease equity, so a revenue account's normal balance is a credit balance. When should supplies be recorded as an expense? (Enter one word per blank. B Create a chart showing how each of the conditions below might cause market failure. 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 debit balance. A (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.) (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. b. B Credit Cash $12,420 No, it is not possible for a firm to do both. (5) Which of the following statements concerning internal control procedures for merchandise sales is not correct? In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. 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. A Salaries earned from February 1st to March 1st are to be paid on March 10th. Which of the following statements describes the effect that adjusting entries may have on liabilities? A d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. Pakistan is the 33rd-largest country in the world . C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. A $3,700. A. it will report accounts receivable on the balance sheet at their net realizable value. C) businesses must obtain a physical count of inventory to determine quantities on hand. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. A state grant for low-income housing assistance. \begin{matrix} 2. Accident investigation. How does Indian village life compare to city life? (5) When should the net method be used to record sales revenue? Gold Dome Report - Legislative Day 22. b. \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}\\ If a company spends $12 million dollars for a warehouse, when should the cost be written off? D b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 An adjusting entry for accrued expenses involves: (Select all that apply.). 5. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. Why or why not? Interest Expense $825 \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ Andy records an adjusting entry for deferred revenue. . Which of the following statements is not true? B cash-basis; April. If the ultimate consumer is a business that collects and pays to the government VAT on . Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. 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. c. When there is no ending inventory. overstated; $16,125. Which of the following is an adjusting entry that should be made by the company? Which of the following best describes the recommended format for the government-wide statement of activities? \text{Assets} & \quad & \text{Liabilities and Equity}\\ Which of the following accounts is listed in a post closing trial balance? a. M What journal entry should the company make in August to denote this delivery of services? Use diagrams where appropriate. In addition, Reinhardt paid $4,000 of dividends during 2019. ), 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). On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? A. The rent agreements on both buildings went into effect on the dates the rents were prepaid. $$ (* These are short-term notes receivable arising from customer (trade) sales.) B Salaries and Wages Expense and Salaries and Wages Payable C (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. $$. Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. How do the following circumstances sometimes lead to market failure? Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. 8. B. The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. D (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. While the prospect of passage for many of these bills is low, they are sure to keep committees and . The entry is an accrual of $3,000 in Wage and Salary Expense. 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. an adjusting entry is completed ________. 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