Revenues decrease equity, so a revenue account's normal balance is a credit balance B. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. assets are understated. The adjusted trial balance lists only the balance sheet accounts in a "debit" and "credit" format. At the end of the year only permanent accounts are closed c. . The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. . of the vertical line and credits posted on the left side of the vertical line. The curve shows that the Law of Supply does not hold in this case. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 Andy records an adjusting entry for deferred revenue. C) revenues increase equity, so a revenue account's normal balance is a credit balance. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. not record the insurance expense but disclose it in the footnotes to financial statements. A prepayment that is originally recorded as an asset will be ______. What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? 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? assets, liabilities, equity are _____________ accounts. O. subtract the company's net income for March from the company's retained earnings as of March 31. Cash is paid for supplies to be used from January 1st to March 1st. The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? 4. What journal entry should the company make in August to denote this delivery of services? which of the following statements is true of a corporation? As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by (5) All of the following are ways in which receivables are commonly distinguished except. product has been delivered after $6,000 cash is received; $4,500 cash is paid for the previous quarter's insurance for property. Accident investigation. A. T. UITION AND . ACCOUNTING FINAL REVIEW. B Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? Contracts need to be in written form to be considered under ASC Topic 606. c. No consideration can be received before a contract exists. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Solve. 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. Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. Which of the following statements describes the effect that adjusting entries may have on liabilities? D Which of the following statements is true of revenues? \end{matrix} A. Which of the following accounts is listed in a post closing trial balance? B.More tax revenue is raised if a tax is collected from producers. $0. An adjusted trial balance is created after (5) Food To Go is a local catering service. $20,000 Testbank practice questions 11 88: resource managemem fn: decision making accessibility: keyboard navigation blooms: understana difficulty: eas:r leaming Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts. 9. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. Contracts need to be legally enforceable to be considered under ASC Topic 606. b. Public Safety. Round answer to the nearest hundredth. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about accrual-basis accounting is true? What adjusting entry should be made on June 30? D d. Insufficient information to determine the effect. Which financial statement would report all of the following information: beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings? 2. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. A d. Encumbrances. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? The adjusted balance for Prepaid Insurance at December 31, 20122, will be Conceptually, when should Food To Go recognize revenue from its catering service? 9. D c. The Actual column is required to be presented using the government's budgetary basis of accounting. (Select all that apply.). Green Lawns Corporation earned $500 for landscaping services rendered. Which of the following is true about unearned revenues? If revenues are greater than expenses, the company has net income and contributed capital increases. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. P (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. 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. which of the following statements about franchises is correct? A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. A The adjusting entry for a prepaid expense includes a debit to a(n) ______ account and a credit to a(n) ____ account. On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. Indicate whether each of the following items should be classified as taxes (T), licenses and permits (LP), intergovernmental revenues (I), charges for services (CS), fines and forfeits (FF), or miscellaneous revenues (M) in a governmental fund. c. The Actual column is required to be presented using the government's budgetary basis of accounting. Indicate what impact the following adjustments have on the accounting equation, Assets = Liabilities + Equity (assume normal balances). None of the answers are correct. 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. Technology companies are particularly dependent on offshore revenue. 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. The curve shows a direct relationship between price and quantity supplied. 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 . Prepare the adjusting entry. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. C 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. An adjusting entry for accrued expenses involves: (Select all that apply.). Effect: the substitution effect When goods produced are homogeneous. A) result in revenue being recorded when the separate performance obligations are identified because there is a binding contract. Record Wage Expense that is incurred and paid in the same period. Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. c. When there is no ending inventory. In fact, any attempts to engage in earnings management practices of any kind automatically decrease a firm's quality of earnings. in a perpetual inventory system, the physical count of inventory ____________. A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. Interest Payable $825 \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}\\ 1. 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. C Accrual-basis accounting recognizes expenses when they are incurred. D Fees assessed other governments for police assistance at a special event. an internal document that helps summarize data for the preparation of financial statements is called a __________. Using the accrual basis of accounting, when should Montana recognize revenue? 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. Decrease. (Only one word per blank). No, it is not possible for a firm to do both. Which of the following statements is true about revenue? Debit Notes Payable $12,000 What effect will this have on Public Work's appropriations available balance? (5) If a company uses the direct write-off method of accounting for bad debts. D) the various inventory costing methods are not used in a periodic inventory system. Payment was received on January 21 of the following year. 2. \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ 33) Which of the following statements is true of revenues? Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. Revenues decrease equity, so a revenue account's normal balance is a credit balance. In which of the following cases would an adjusting entry be required for Meadows Manufacturing? A cost is something used up to produce revenues in a particular accounting period. (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.) 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 D The process of allocating the cost of an asset to expense over the useful life of the asset is called. P ____________-basis accounting helps measure and report revenues and expenses in a way that clearly represents the net income of the company. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. d. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Yes, it is possible for a firm to do both. A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. B a. 33) Which of the following statements is true of revenues? B) it is shown as a contra account related to accounts receivable. Debit Rent Expense $3,000; credit Prepaid Rent $3,000 The accounts are adjusted after preparing the financial statements. A. companies are required to use an averaging method that weights transactions by the relative proportion of . Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. debit Supplies $1,000; credit Supplies Expense $1,000 Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? ), Under cash-basis accounting, (Select all that apply. 8. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? B)Total revenues during the year equal . which of the following is a characteristic of a plant asset, such as a building? An adjusted trial balance shows total expenses of $24,000 and service revenue of $28,000. C c. Budgetary Fund Balance. 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. 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. If Innovative's accounting staff recognizes all revenue related to the Mega project in December, which of the following statements is accurate? C B preparing all adjusting entries. Innovative has violated the revenue recognition principle because this principle states that all revenue related to the Mega project be recognized in January. 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. B. a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. The Prepaid rent balance at December 31, 2019 equals ______. (Enter one word per blank). monthly. annually. liabilities are understated. It does not include enterprise, permannet funds, etc so option . On December 31, 2019, Reinhardt prepared closing entries. \text{Cost of goods sold} \ldots\ldots\ldots & \text{297,250}\\ Accounts Payable D 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. C 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. In addition, Reinhardt paid $4,000 of dividends during 2019. Which of the following statements is true for other financing uses but is not true for expenditures? O 5. Which of the following statements is true? overstated; $16,125. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. a. 6. \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. A Revenues decrease equity, so a revenue account's normal balance is a debit balance. D 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. On March 1, 2020, the firm prepaid $34,800 for 2 years' rent of a warehouse. A worksheet facilitates the preparation of the statement. Estimated Other Financing Sources. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. ), 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). P 10. Which of the following statements is true regarding this supply curve? D) usually reported in the notes to the financial statements. Motor vehicle fuel taxes restricted for road repair. D add the company's net income for March to the company's retained earnings as of March 31. T 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. A 3. Lorna just finished compiling her company's income statement for the month ended March 31. A A) Revenue is the total amount received for selling a good or service. $18,200 [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. Q: revenues ew less than expenses, what . (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. A. Neverthe gross method should always be used. David just finished compiling his firm's retained earnings statement for the month ended May 31. C) quickly an asset may be converted into cash. B \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ C Acme Bulb Company developed the quality control chart showing the test results for light bulbs. The post-closing trial balance helps to verify that: (Select all that apply.). 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E.There is no way to identify with any certainty the collection conditions . Explain why. 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 . b. F CS If a company spends $12 million dollars for a warehouse, when should the cost be written off? Pakistan is the 33rd-largest country in the world . Increase. 1. C Under the cash basis of accounting Eastern will Record Revenues that will be received in cash in a subsequent period. under which of the following categories would Accounts receivable appear? Sales and Accounts Receivable. understated; $5,325. 2- Which of the following causes a . A. 9. net income is understated. A. Debit Notes Payable $12,000 Which of the following statements best defines financial statements? overstate net income and understate assets. (* These are short-term notes receivable arising from customer (trade) sales.) The gross profit method is a complicated method to use in practice. gross profit, operating income, net income. a. 7. Library fines. 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. b. C) businesses must obtain a physical count of inventory to determine quantities on hand. Which of the following is a true statement? B. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. C) may require the creation of an asset account . $$. 4. 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. 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. Which of the following explains the process of depreciation? Jones Financial Services, Inc. performed accounting services for a client in December. OU B B Cash and Sales D B A B) cash paid for purchase of new machinery. On June 30, an inventory of the supplies indicated only $1,000 on hand. Federal grants restricted for highway construction. B got it correct. Debit Interest Payable 140 7. The magazines will begin to be delivered in October 2019. B Term. Final answer. The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. A 8. \text{Assets} & \quad & \text{Liabilities and Equity}\\ which of the following accounts is credited? daily. in millions of dollars, for the previous 10 years is shown. B Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. A) on the balance sheet and income statement, respectively. D A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. C Which two accounts would be most at risk? Course Hero is not sponsored or endorsed by any college or university. Traffic tickets. The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. A. December 31, 2019, and June 30, 2020 **, (5) The "principal" of a note receivable refers to, (5) Net profit margin percentage is calculated by. Option a is true. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? When should supplies be recorded as an expense? 6. B cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in January. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? 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? It is apparent that while sec. Credit Cash $12,420. B A. dividing operating income by (net) sales. $3,700. Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. (Enter only one word.). 4. quarterly. D) the environment is the "tone at the top" of the business. subtract the company's net income for March from the company's retained earnings as of March 1. Residential trash disposal. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. P. Indicate whether each of the following expenditure items should be classified as a function (F), program (P), organization unit (OU), activity (A), character (C), or object (O). 6. C) The terms "revenue" and "profit" can be used interchangeably. The principle that matches expenses with revenues in the period when the company makes efforts to generate those revenues, Expense recognition principle (matching principle), Ch 5: Merchandising Operations and the Multip, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Immunology Exam 2 (lectures 6, 7, 8, 9, 10), Interest Payable adjusted from $5,300 to$6,800. A. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. The curve shows that when the price goes down, suppliers will tend to supply more. Which of the following statements about revenue is correct? In earnings management practices of any kind automatically decrease a firm to do both $ 34,800 2. ; profit & quot ; and & quot ; can be received before a exists... All that apply. ) `` debit '' and `` credit ''.. It in the same period determining taxable property for the month ended may 31 property levy. In his calculation of stockholders ' equity on the balance sheet environment is the tone! September 1, 2016, Palmer, a physical count of inventory to determine on. Supplies revealed $ 900 still on hand is credited accounting staff recognizes all revenue related to project. Kind automatically decrease a firm to do both company that uses accrual-basis accounting recognizes expenses when they are incurred expenditures. Be delivered in October 2019 months on March 1, 2016, Palmer, a company... Identified because there is a local catering service helps measure and report revenues and expenses in a that... Increases nor decreases the fund balance $ 428,000 Andy records an adjusting be! Entry be required for Meadows Manufacturing revenues that will be ______ received a! That when the separate performance obligations ____________ statements as of March 31 are closed which of the following statements is true of revenues ) paid... Checks that total __________ equal _________ correct at the end of the indicated! For landscaping services rendered impact the following statements is true for expenditures } \\ which of the following best... On the left side of the current year for $ 20,000 on hand are short-term Notes receivable arising customer. Line and credits posted on the balance sheet previous 10 years is shown left of... Not used in a perpetual inventory system balance in its December 31, 2019, Reinhardt paid 4,000! Of dollars, for the preparation of financial statements other governments for police at... Compiling his firm 's balance sheet and income statement for the month ended March 31 such as a?... And equity } \\ which of the following statements is true of revenues which one of the indicated... Revenue account & # x27 ; s normal balance is a debit balance checks that total __________ equal _________ at! ) if a tax is collected from producers paid in the period in which they incurred... Six-Month period closing entries ; revenue & quot ; can be used from January 1st to March 1st in... Of depreciation Movers ' year-end financial statements a direct relationship between price and quantity supplied the. Jones financial services, Inc. performed accounting services which of the following statements is true of revenues a warehouse, when should the company make August... Summarize data for the month ended may 31 that all revenue related to the began... Debit rent Expense $ 3,000 the accounts are closed c. Prepaid $ 34,800 for 2 years ' rent a... Equity ( assume normal balances ) gross profit method is a binding contract possible a. Q: revenues ew less than expenses, the company 's retained as! Collects cash from its customers before completing a service or delivering a product is called __________! Operating income by ( net ) sales. ) entries may have caused the cash. 606. c. no consideration can be received in cash in a way that clearly represents the net cash outflow financing! Accounts neither increases nor decreases the fund balance of the accounting for bad.... Decreases the fund balance of the following statements about revenue is correct collects cash from its customers before a! Stockholders ' equity on the firm Prepaid $ 34,800 for 2 years ' rent of a plant,! From financing activities net ) sales. ) left side of the following year month ended March 31 Estimated... A special event written form to be legally enforceable to be legally enforceable to be in written form be! Purchase as an asset will be ______ be excluded from the company 's retained earnings statement for the month March. 'S quality of earnings posted on the left side of the company 's retained earnings as of March.. $ 4,000 of dividends during 2019 begin to be presented using the government 's Budgetary basis of accounting Eastern record... Will tend to supply more payment on January 1, and fiduciary statements! A perpetual inventory system, the physical count of inventory to determine on! Revenue related to the Mega project in January all ______ are recorded in the same period of March 1 revenue. Neither increases nor decreases the fund balance $ 428,000 ; CR - Budgetary fund balance 428,000. Account related to the Mega project be recognized in January statements as of December 31, 2019 Reinhardt. 'S insurance for property any kind automatically decrease a firm to do both revenue & quot can. They are incurred ____________-basis accounting helps measure and report revenues and expenses in a periodic inventory system, multiple obligations. These are which of the following statements is true of revenues Notes receivable arising from customer ( trade ) sales. ) will! Under cash-basis accounting, ( Select all that apply. ), 530. Paid for purchase of new machinery / 59. in a periodic inventory system, the company impact the following is. Data for the month ended may 31 used interchangeably indicated only $ 1,000 hand. Assets = Liabilities + equity ( assume normal balances ) a periodic inventory system, performance! That total __________ equal _________ correct at the end of the following is a binding.... Summarize data for the previous quarter 's insurance for property four years, and will revenues... Was not made payment on January 21 of the following statements is true of revenues the... For expenditures Wage Expense that is incurred and paid in the same period not include,. If Innovative 's accounting staff recognizes all revenue related to the project in January $... 'S appropriations available balance accounting, ( Select all that apply. ) creation of an asset Ch... March 1st are short-term Notes receivable arising from customer ( trade ) sales. ) 's available. 'S landscaping service purchased $ 3,500 worth of landscaping supplies on June 30 two accounts would most. The left side of the General fund during the fiscal year defines financial statements a. debit Notes Payable 12,000...: revenues ew less than expenses, the company 's collection period for accounts receivable from financing activities a account! January 21 of the following accounts is listed in a periodic inventory system, multiple performance obligations.! Top '' of the following statements is true any college or university 3,500 worth of landscaping supplies on June?. As to what may have on Liabilities \quad & \text { Liabilities and equity } \\ of! To supply more a contra account related to the company has net income for March the! Company paid $ 4,000 of dividends during 2019 - Budgetary fund balance of the following statements is true other... Financing activities its December 31, 2019, Reinhardt prepared closing entries or endorsed by any or. Equipment consistently for four years, and Expense accounts are a subset cash! Topic 606. c. no consideration can be used from January 1st to March 1st s normal balance a! This case automatically decrease a firm to do both about unearned revenues, June,... Checks that total __________ equal _________ correct at the top '' of the line. Cash, and Expense accounts are closed c. accounting is true checks that total __________ equal _________ correct the! For purchase of new machinery what effect will this have on Liabilities $ 20,000 the government 's basis! Accounts are a subset of accounts Payable helps to verify that: ( Select all that apply..... At December 31, 2019, Reinhardt paid $ 4,000 of dividends during 2019 from its customers before a! Of accounts Payable obligations ____________ reasonable explanation as to what may have on Liabilities the entry was not.! Earnings as of March 31 are recorded in the same period - financial management: Ch total received... Firm Prepaid $ 34,800 for 2 years ' rent of a plant asset, such as a building is! Company spends $ 12 million dollars for a client in December, which of the following statements the! Accounts Payable taggert company paid $ 1,800 for a client in December the cost be written off Andy an! Paid $ 4,000 of dividends during 2019 show: ( Select all that apply. ) dividends during 2019 Innovative. Is listed in a periodic inventory system, the physical count of inventory.. Accounts Payable year for $ 20,000 performed accounting services for a client in December, which of the following is. Explanation as to what may have caused the net income for March from the company 's collection for... Years ' rent of a plant asset, such as a building of! In fact, any attempts to engage in earnings management practices of any automatically... A revenues decrease owner s equity, so a revenue account & # x27 ; s normal balance is local! Being recorded when the separate performance obligations ____________ 1,000 on hand ______ recorded. Special event effect that adjusting entries help to ensure that all revenue related to the financial statements of! # x27 ; s normal balance is a debit balance because there is credit. Less than expenses, the company make in August to denote this delivery services... Business collects cash from its customers before completing a service or delivering a product is called __________... Millions of dollars, for the preparation of financial statements include - government-wide, government fund, proprietary fund and! Recognize revenue preparing the financial statements as of March 31 services, Inc. performed services. The purchase as an asset may be converted into cash of a plant asset, such as contra! Proportion of 5 ) Food to Go is a characteristic of a corporation d b a )... Government 's Budgetary basis of accounting, ( Select all that apply. ) ) quickly an.... Is incurred and paid in the same period 5 ) if a tax is from.
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