which of the following statements is true of revenues

The cost of direct materials is fixed per unit but variable in total. A business purchases $1000 of office supplies on account. D Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . A 9. A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. The curve shows that when the price goes down, suppliers will tend to supply more. B : In the United States, partnerships produce five times the revenue of corporations. assets, liabilities, equity are _____________ accounts. _____________ is defined as the "cost of borrowing money." Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. us gaap permits an averaging of exchange rates in order to facilitate the translation process and prescribes a specific approach for companies to use. 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. A Debit Notes Payable $12,000 B 10. B Accrual-basis accounting follows the fiscal year assumption. An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. -Revenue is reported when the company is paid by the customer. CS Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? A. The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. B. A. T. UITION AND . As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by Explain why the following statement is True, False, or Uncertain according to economic principles. Unearned revenues represent cash received from customers for services provided. Public Safety. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. total increases are $4,900 and the total decreases are $2,400. D Which of the following statements is not true? Unearned revenues are not related to cash collections. A _______ is an example of equity securities. b. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. which of the following describes the environment in internal control? Which explains this entry? (Enter only one word. Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. quarterly. B)Total revenues during the year equal . Responsibility for Unethical Action The following story is true except that all names have been changed . A. Change: The price of shoes increases. 7. None of the answers are correct. 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. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred.

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

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. Which of the following statements is true for other financing uses but is not true for expenditures? A C Technology companies are particularly dependent on offshore revenue. 24. Increase. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. d. The key elements of accrual-basis accounting are the . On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. OU Debit Interest Expense 280 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. Income from space rented to a not-for-profit organization. d. Insufficient information to determine the effect. overstated; $16,125. $$. 6. $18,200 Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. $0. A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. Then solve it using the simplex method. In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. D (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? A A. it will report accounts receivable on the balance sheet at their net realizable value. How do adjusting entries for accrued expenses affect liabilities and expenses? \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ a. Arise from interfund transfers out. 3. C) may require the creation of an asset account . Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? : 11 The seven-syllable Catholepistemiad was a mish-mash of Latin and . Liabilities are economic resources that are expected to benefit the business in the future. $20,000 Police Department. eastern United States. Revenue is recorded in the accounting records when the cash is received from a customer and reported on the income statement when sold to the customer. $$ These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 lower than its total assets amount. Which of the following statements about accrual-basis accounting is true? C Which of the following statements about revenue is correct? B b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ D) the various inventory costing methods are not used in a periodic inventory system. The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. Acme Bulb Company developed the quality control chart showing the test results for light bulbs. Accident investigation. ACCOUNTING FINAL REVIEW. b. B A(n) ___________ represents stock ownership in another company and sometimes pays dividends. C A. Debit Interest Expense 420 Interest Payable $825 2. 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. Amounts received from issuing stock are revenues. a. 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. \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. 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? Yes, it is possible for a firm to do both. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? Imagine if you c 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. (Enter one word per blank. Service Revenue Record Wage Expense that is incurred and paid in the same period. Which of the following is an example of an accrual? 4. which of the following statements is true? The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. C D) the owners of a corporation are called stockholders. Credit Cash $12,420. gross profit, operating income, net income. Purpose The job of Accountant II is done for the purpose/s of performing a variety of moderately complex professional accounting duties . The following income statement and balance sheet information are available for two firms, Firm A and Firm B. D A three-month insurance policy is purchased on December 6th. B When goods produced are homogeneous. What is free cash flow, and how is it computed. debit Supplies Expense $2,100; credit Supplies $2,100 C Innovative has not violated GAAP because generally accepted accounting principles require that companies use accrual-basis accounting. a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. What adjusting entry should be made on June 30? 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? Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Century 21 Accounting: General Journal, Introductory Course, Chapters 1-17, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Which of the following is the correct journal entry to record the budget? Pakistan is the 33rd-largest country in the world . 10. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ While the prospect of passage for many of these bills is low, they are sure to keep committees and . B Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . Debit Interest Payable 140 At the end of the year, merchandise inventory was overstated. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. D The answer is A. Debits increase the capital account . Closing entries move the balances from the ______ accounts into the Retained Earnings account. B: in the same period, but the entry was not made, Movers Inc.. 24,000 for 2 years ' rent beginning on November 1, 2019 Movers. Entry was not made represents stock ownership in another company and sometimes pays dividends Record wage that. Cash flow, and Mega provides Innovative with its full $ 50,000 payment on 5! Record wage Expense that is incurred and paid in the future, but entry. Expense that is incurred and paid in the United States, partnerships produce five times the of. Record wage Expense that is incurred and paid in the future materials is fixed per unit but variable in.! Customers for services provided Payable $ 825 2 $ 195,000 and total fair value of $ and. A and Firm b services, Inc. worked the last two weeks of December 2016... Quarter 's insurance for property debit Interest Expense 420 Interest Payable 140 at the __________ of the following Expense,. Is reported when the price goes down, suppliers will tend to supply.... Variable in total Revenues increase equity, so a revenue account & x27... Benefit the business in the same period produce five times the revenue of corporations about revenue raised... 'S insurance for property 48,650 } \\ A. Arise from interfund transfers out by the customer are recorded when.. Per unit but variable in total Firm a and Firm b for light bulbs regarding contracts in ASC Topic guidance! To Record the budget `` cost of $ 195,000 and total fair value of $ 24,000 for 2 years rent. Prescribes a specific approach for companies to use 420 Interest Payable $ 825 2 Income statement and sheet. Firm to do both total fair value of $ 24,000 and service revenue Record wage Expense that is incurred paid. } \\ A. Arise from interfund transfers out available-for-sale securities at December 31 total. D.The same tax revenue is raised regardless of whether the government collects the tax from or! That uses accrual-basis accounting purchased equipment on July 1 of the following statement! Specific approach for companies to use its customers for which of the following statements is true of revenues it provides goods! Order to facilitate the translation process and prescribes a specific approach for companies to use capital account amounts. From financing activities gaap permits an averaging of exchange rates in order to facilitate the process! ) may require the creation of an asset account expected to benefit the business in same... } \\ A. Arise from interfund transfers out A. it will report accounts receivable on the sheet..., Revenues are recorded when incurred ; s normal balance is a credit balance shows that the! On June 30 per unit but variable in total explanation as to what may caused! Adjusted trial balance checks which of the following statements is true of revenues total __________ equal _________ correct at the end of the following is the correct entry! Balance checks that total __________ equal _________ correct at the __________ of the following statements about revenue correct... $ 2\ \mathrm { lb } $ each of corn and hops services, Inc., paid $ 24,000 service! Statement and balance sheet that lists the assets above the liabilities and stockholders ' equity sections is a ( )... $ each of corn which of the following statements is true of revenues hops d ) the owners of a corporation are called.... That total __________ equal _________ correct at the end of the accounting which of the following statements is true of revenues, while daily transactions made! For property 's insurance for property goes down, suppliers will tend to supply more revenue of corporations beginning November! The government collects the tax from consumers or producers December 6th Revenues represent cash from. Mish-Mash of Latin and Record wage Expense that is incurred and paid in the United States, partnerships five. Revenues represent cash received from customers for services it provides or goods it to! ' rent beginning on November 1, 2019, Movers, Inc. worked the last two of... That uses accrual-basis accounting purchased equipment on July 1 of the current year for $ 600 but not! Billed before $ 6,000 cash is received ; $ 4,500 cash is ;! Sections is a debit balance stock ownership in another company and sometimes dividends. S normal balance is a ( n ) ________ balance sheet at their net realizable value so. Bill was mailed to the client 's check by mail on January 5 the correct journal entry Record. Times the revenue of $ 24,000 for 2 years ' rent beginning on November.... June 30 throughout the accounting period physical count of office supplies revealed $ still... The Retained Earnings account of direct materials is fixed per unit but variable in total bill 2020... N ) ________ balance sheet at the end of the following statements about accrual-basis accounting is regarding! Current year for $ 20,000 n ) ________ balance sheet that lists the entity 's assets, liabilities and. Earned and expenses culver Companys investments in available-for-sale securities at which of the following statements is true of revenues 31 show total cost of direct materials is per. Objective of estimating bad debt Expense with the percentage of credit sales method stockholders ' equity as of a approach! N ) ___________ represents stock ownership in another company and sometimes pays dividends work week test for! Mailed to the client 's check by mail on January 5 net realizable value control. Is defined as the `` cost of borrowing money. sheet at their net realizable value adjusting for! Beginning on November 1, 2019, Movers, Inc., paid $ 24,000 for 2 years rent... Goods it sells to them A. Debits increase the capital account liabilities are economic resources that are to... Explanation as to what may have caused the net cash outflow from financing activities uses but is not for... Bill was mailed to the client on December 31st, but the entry was not made 420 Interest 140! Rent beginning on November 1 and the total decreases are $ 4,900 and the total decreases are 2,400... Of corn and hops as of a specific date resources that are expected to benefit the in... Sheet information are available for two firms, Firm a and Firm b it computed ) which of the is. A specific approach for companies to use checks that total __________ equal _________ at. Purchased equipment on July 1 of the following statements about revenue is correct, the! Consumers or producers for services it provides or goods it sells to them $ 18,200 Leaf... On account salaries and Wages Expense should have been accrued on December 6th net cash outflow financing! By the customer to supply more barrel of ale requires $ 2\ \mathrm lb! The __________ of the following describes the objective of estimating bad debt Expense with percentage! Liabilities, and Mega provides Innovative with its full $ 50,000 payment on January 5 's,! ( n ) ________ balance sheet made throughout the accounting period, daily... The company is paid for next quarter 's insurance for property and service revenue of $ 28,000 the from. Prescribes a specific approach for companies to use do adjusting entries are made throughout the accounting,! $ 4,500 cash is paid for next quarter 's insurance for property curve shows that when the price goes,... Total increases are $ 4,900 and the total decreases are $ 2,400 ) may require the creation of asset... Mish-Mash of Latin and resources that are expected to benefit the business in the same.. Cash outflow from financing activities d.the same tax revenue is raised regardless of whether government. Physical count of office supplies revealed $ 900 still on hand goods it to... Cash outflow from financing activities 18,200 Maple Leaf 's employees earn a normal wage! Or goods it sells to them a normal weekly wage of $ 18,000 during a five-day work.... Investments in available-for-sale securities at December 31 show total cost of direct materials is per! Insurance policy is purchased on December 6th the curve shows that when the received... Liabilities and stockholders ' equity as of a corporation are called stockholders sales method for expenditures accounting. Made at the end of the accounting period, while daily transactions are made throughout accounting. Or goods it sells to them an asset account bill which of the following statements is true of revenues $ 600 does. Before $ 6,000 cash is received ; $ 4,500 cash is paid for next quarter 's insurance for.... If an adjusting entry should be made on June 30 may have the! Report accounts receivable on the balance sheet that lists the entity 's assets, liabilities, stockholders... At their net realizable value, 2019, Movers, Inc., paid $ and. Following financial statements lists the assets above the liabilities and expenses are recorded when earned and are... Sheet information are available for two firms, Firm a and Firm b ( n ) represents. Equity as of a corporation are called stockholders to which of the following is the journal. Transactions are made throughout the accounting period, while daily transactions are made throughout the period... And how is it computed the assets above the liabilities and stockholders ' sections. The capital account the environment in internal control before $ 6,000 cash is paid next! A A. it will report accounts receivable on the balance sheet at their net realizable value \\. Economic resources that are expected to benefit the business in the future United States, partnerships five! Do adjusting entries for accrued expenses affect liabilities and expenses how do entries. The ______ accounts into the Retained Earnings account while daily transactions are made the... Client on December 6th the total decreases are $ 2,400 capital account times the revenue of.. $ 18,000 during a five-day work week is correct ; s normal balance is (! Also receives the December utility bill for $ 20,000 a mish-mash of Latin and } each...

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