Selected year-end financial statements of Cabot Corporation follow. Accident investigation. Debit Notes Payable $12,000 $20,000 1. preparing all adjusting entries. net income is understated. 3 Budgetary Account, BA 530 - Financial Management: Ch. In this situation, both A D If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? debit Supplies $2,100; credit Supplies Expense $2,100 D 4. The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ (Select all that apply. (Enter only one word.). Which of the following statements are correct regarding the accounting for this insurance over the six-month period? Deferrals and Accruals. a. B 3. M (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. a. Appropriations. On January 1, 2016, Palmer, a fast-food company, had a balance in its Cash account of $32,000. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ 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 Option a is true. Yes, it is possible for a firm to do both. Record Rent Expense that was prepaid. ), Adjusting entries: (Select all that apply.). The answer is A. Debits increase the capital account . (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. A which of the following will be categorized as an investing activity on the statement of cash flows? (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. (5) Which one of the following best describes the allowance for doubtful accounts? A A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. B A business purchases $1000 of office supplies on account. B C The annual revenue, c. Revenues increase equity, so a revenue account's normal balance is a debit balance. 9. which of the following accounts decreases with a credit? 10. But increased competition has slowed their growth rate in the past few years. The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. what is the term used for the difference between the Equipment account and the Accumulated Depreciation-Equipment account. Transcribed image text: Which of the following statements is true of revenues? (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? 2. Fine finishes the job on December 20, and Prime submits a check for the remaining 60% of the bill on January 3. The curve shows an inverse relationship between . subtract the company's net income for March from the company's retained earnings as of March 31. \$201 + \$743 + \$6198 4. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . accrual-basis; April. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. 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. The entry reflects total wage and salary expense this period of $8,000. a. B. A (Enter only one word per blank.). the maturity value of a note is the _______. which of the following statements is incorrect? 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. The rent agreements on both buildings went into effect on the dates the rents were prepaid. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? What is the resulting impact on the financial statements? 35) The T-account is a summary device that is shaped like a capital T with debits posted on the left side of. 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. 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. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. Which explains this entry? \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ $1,200. understated; $5,325. $20,000 c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 Which of the following statements is not true? which of the following accounting methods is used to account for controlling interest investments? How do adjusting entries for accrued expenses affect liabilities and expenses? Which of the following transactions would normally be recorded as an asset when cash is paid? Lorna just finished compiling her company's income statement for the month ended March 31. In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in 6. 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. b. Salaries and wages. A Public Safety. A 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. Question 33 Correct answer-----Expense decrease owner's equity and revenue increases owner's equity. The cost of direct materials is fixed per unit but variable in total. changing the method of valuing inventory ignores the principle of _________. \text{Short-term investments} \ldots\ldots\ldots & \text{8,400} & \text{Accrued wages payable} \ldots\ldots\ldots & \text{3,200}\\ B The company should debit both Accounts Receivable and Service Revenue for $500. Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. 5. A. A) Revenue is the total amount received for selling a good or service. Unearned revenues are reported on the Income Statement. When should supplies be recorded as an expense? It was determined that $2,200 of the Prepaid Insurance had expired. A b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 1. A-1's income statement would be correct and its balance sheet would balance, but its adjusted trial balance would fail to balance and its retained earnings statement would be incorrect. \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ a business purchases equipment for $8,000 cash. Accounts Payable A) on the balance sheet and income statement, respectively. Round answer to the nearest hundredth. 6. The Variance column is required. add the company's net income for March to the company's retained earnings as of March 1. 2- Which of the following causes a . which of the following accounts would appear in the balance sheet debit column of the worksheet? A Q: Which of the following rules is incorrect ? 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. Interest Payable $825 Printing and postage. Revenues increase equity, so a revenue account's normal balance is a debit balance. Amounts received from issued stock are reported on the income statement. At the end of the year, merchandise inventory was overstated. <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 . They would record it as a credit to revenue and debit to cash on April 30. Journalize the entry to accrue interest on December 31st, 2022. . A accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. (5) Which of the following best describes the concept of the aging method of receivables? $$ How much does your employer pay into the social security system on your behalf? Which of the following is an example of an accrual? 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. \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ Which of the following is true of a partnership? C Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. QP Corp. has a beginning retained earnings balance of $16,000. Round to one decimal place; for part 6, round to two decimals. B)Decrease assets and decrease liabilities. 6. B How do temporary accounts differ from permanent accounts? When should Mainzel recognize the related revenue using accrual accounting? Cash and Sales C A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. Tow assingments only 100 words. Which of the following statements is true of revenues? Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. C)No net effect to the accounting equation. A debt that a business owes is called __________. Local government is a generic term for the lowest tiers of public administration within a particular sovereign state.This particular usage of the word government refers specifically to a level of administration that is both geographically localised and has limited powers. understate assets, net income, and stockholders' equity. Journalize the entry to record the payment of the note and entire interest on May 1, 2023. A. Interest Payable $137.50. Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. Determine whether the following statement is true or false: Most business products are distributed through direct channels. recognize the entire year's insurance expense in the month of January. Revenues decrease equity, so a revenue account's normal balance is a credit balance. Rent for the 3 months totals $3,600. Amounts paid out as dividends are not expenses. The following is true of a partnership. Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. debit Supplies $1,000; credit Supplies Expense $1,000 T A) those transactions have already been recorded in the company's journal. C 7. d. The key elements of accrual-basis accounting are the . "2022 was a If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded? G Net income is overstated cost of merchandise sold is overstated, or merchandise inventory reported on the balance sheet is overstated, which has a direct relationship with gross profit and net income.
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