C Solve. 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. The magazines will begin to be delivered in October 2019. Amounts received from issued stock are reported on the income statement. P B not record the insurance expense but disclose it in the footnotes to financial statements. P A 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. The post-closing trial balance helps to verify that: (Select all that apply.). David just finished compiling his firm's retained earnings statement for the month ended May 31. On March 1, 2020, the firm prepaid $34,800 for 2 years' rent of a warehouse. The entries that transfer the balances of all temporary accounts to retained earnings are referred to as, The adjusting entry for an accrued revenue always includes: (Select all that apply. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. Andy records an adjusting entry for deferred revenue. annually. 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. Regarding liabilities, which of the following statements is incorrect? I, A508 Govt & Nonprofit Ch. restrictions on retained earnings are _________. Accounts Payable 6. Meadows Manufacturing has a March 15th year-end date. 5. 6. Income from space rented to a not-for-profit organization. Basic Concepts For each of the following statements, indicate whether it is true, false, or uncertain. G how would this information be included on the bank reconciliation? d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. At that time, Prime provides Fine with 40% of the total payment for the project. Transcribed image text: Which of the following statements is true? You selected C : understate assets, net income, and stockholders' equity. Merchandise Inventory and Cost of Goods Sold appear ___________. Salaries and Wages Expense and Salaries and Wages Payable (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. 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? The customer promised to pay at a later time. Q: revenues ew less than expenses, what . If the annual premium is $924, find the amounts of the three payments. C D which of the following accounts is credited? Which of the following statements regarding the statement of cash flows are correct? 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. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. A P a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. b. Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. Debit Notes Payable $12,420 preparing all adjusting entries. assets are understated. (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. \begin{matrix} common stock is a separate account in the ________ category of the accounting equation. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. Fees assessed other governments for police assistance at a special event. 7. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. None of the answers are correct. $$ Accounts Receivable. . Public Safety. B Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. assets, liabilities, equity are _____________ accounts. 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? Residential trash disposal. Which of the following statements best defines financial statements? An adjusting entry for accrued expenses involves: (Select all that apply.). Dictates that companies record assets at their cost. 1. 3. P 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. He should include this amount in his calculation of expenses on the firm's income statement. a. C In addition, Reinhardt paid $4,000 of dividends during 2019. As a result of operations, Maple Leaf's net income for the most recent fiscal year will be ________ by which of the following statements is true if a bond's stated interest rate is higher than the market rate? B : In the United States, partnerships produce five times the revenue of corporations. B)Decrease assets and decrease liabilities. Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. Which of the following has an asset-expense relationship? B accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. D) the environment is the "tone at the top" of the business. March 31 falls on a Tuesday for the current year. B Explain your reasoning. C) franchises are privileges granted by a business to sell goods or services under specified conditions. a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. Credit Cash $12,420 Revenues decrease equity, so a revenue account's normal balance is a credit balance. Amounts received from issuing stock are revenues. A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. Q: Which of the following rules is incorrect ? which of the following accounts decreases with a credit? The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. B C) quickly an asset may be converted into cash. preparing all deferral entries. Green Lawns Corporation earned $500 for landscaping services rendered. What is the resulting impact on the financial statements? (Enter only one word.). How do adjusting entries for accrued expenses affect liabilities and expenses? If revenues are greater than expenses, the company has net income and contributed capital increases. Investment earnings restricted for art preservation. Selected year-end financial statements of Cabot Corporation follow. A B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. in millions of dollars, for the previous 10 years is shown. 6. \ What adjusting entry should be made on June 30? \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. Decrease. Which of the following statements is true for other financing uses but is not true for expenditures? Meadows Manufacturing follows the accrual basis. Charges to a local university for extra city police protection during sporting events. D Accrual-basis accounting is optional under . overstate assets and net income. C 4. D d. Insufficient information to determine the effect. A) assets are something of value the business owns or controls. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. The Prepaid rent balance at December 31, 2019 equals ______. a. <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 . Gift for the purchase of new playground equipment. c. The Actual column is required to be presented using the government's budgetary basis of accounting. no journal entries are required for the reconciling items on the bank side because ___________. 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. B) cash paid for purchase of new machinery. the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. Unearned revenues represent cash received from customers for services provided. $$ To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. Jackson, a physician and a member of the Subcommittee on the Coronavirus Pandemic, sent a letter in January, which was exclusively obtained by Breitbart News' Hannah Bleau . A debt that a business owes is called __________. Under which of the ff. 6. _____________ is defined as the "cost of borrowing money." But increased competition has slowed their growth rate in the past few years. B)Total revenues during the year equal . A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. Which of the following is the correct journal entry to record the budget? Cash and Sales. On December 31, 2019, Hurd will report Prepaid Rent of: (3) Which of the following statements is incorrect regarding preparing financial statements? Sales and use taxes levied by the government. (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. 10. On the first day of each year when the cash is received. Credit Cash $12,420 Not recorded because it is a projection and not yet known. Printing and postage. The adjusted trial balance lists only the balance sheet accounts in a "debit" and "credit" format. Fund, function or program, organization unit, activity, character, and object. C (Select all that apply. How do temporary accounts differ from permanent accounts? B Effect: the substitution effect CS (Select all that apply. Interest Expense $825 A) on the balance sheet and income statement, respectively. Debit Interest Expense 280 (5) Which of the following best describes the concept of the aging method of receivables? Record Rent Expense that was prepaid. $2,200. which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? (5) What does the phrase, "Revenue is recognized at the point of sale" mean? Credit Cash $12,420. d. Encumbrances. While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . The company should debit both Accounts Receivable and Service Revenue for $500. A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. The entry is an accrual of $3,000 in Wage and Salary Expense. Salaries and Wages Expense and Salaries and Wages Payable. c. When there is no ending inventory. debit Supplies $2,100; credit Supplies Expense $2,100 If one of these light bulbs is selected at random, find the probability that the light bulb is: (a) Good; (b) Good, given that it is 606060 watts; ( c ) defective, given that it is not 303030 watts. Interest Payable $137.50 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 entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? Income Statement for Year Ended December 31, 2015. $1,300. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. M (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.

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