Which of the accounts below are considered accrued expenses? Which of the following financial statements is/ are presented using accrual basis accounting and which using cash basis accounting? -Dividends 1) The potential to contribute to the flow of cash and cash equivalents to the entity 2) When current assets less current liabilities become negative 3) The ability of the entity to continue in operation for the foreseeable future 4) The income less expenses of an entity are negative 5) None of the above is correct a. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Interest expense. 52. -Revenues However, because the amount of nicotine in a leaf is a fixed quantity, smaller leaves would result in cigarettes having more nicotine (because a greater fraction of the leaf would be used to make a cigarette). All values are in dollars. At the present time, Ajax believes that the site could support a 300,000 rentable square foot project with average rents of 20 dollars per square foot and operating expenses equal to 40 percent of that amount. Do not include "account" or "accounts" in your answer. The cost (or an amount substituted for cost) of the asset less its residual value b. 14. . Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Depreciation. Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses. c. Tota, Which of the following best describes the balance sheet? Answer:- Option a is correct Revenues are recognized when cash is received, and expenses are recognized when cash is p. Essentially, the deals were structured to make it appear that money was coming into Enron from trading activities, rather than from loans. (100/3,600) of insurance expense would be reported at the time of purchase. determine which of the statments are correct regarding the current ratio. Below, you'll find other important information about this position. c. Consider the following account: Unearned subscription revenues. During the summer of 2002, the financial press reported that Citigroup was being investigated for allegations that it had arranged transactions for Enron so as to intentionally misrepresent the nature of the transactions and consequently achieve favorable balance sheet treatment. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia B. the balance sheet. -Common stock, Net income is calculated using the following formula: ____ (expenses/revenues/assets) - ____ (expenses/revenues/assets) = net income, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, R - CH 5 - Theories of Counseling and the Hel, e. Investment in Starbucks Corporation (to be held long-term). Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Common stock. Given the statements below, choose the most accurate definition of dividends. Lori paid $12,500 to the bank for her business mortgage payment last year. 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Assume that all balance sheet amounts represent average balance figures. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. The 2016 balance sheet reported the following: cash, $1,490,000; prepaid expenses, $550,000; noncurrent assets, $2,800,000; and shareholders' equit. Which of the following statements best describes one effect of recognizing expenses incurred by a business entity? Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Interest payable. Lori paid $12,500 to the bank for her business mortgage payment last year. (b) retained earnings statement. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Sales revenue. Less. Profit margin is the ratio of a business's net income to its net sales. Apr. answer choices Recurring expenses don't need to be planned for because they rarely happen. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Indicate in which of the following financial statement(s) you would likely find cash assets. When recording transactions into the accounting equation, which of the following statements are correct? Watch the full episode on Rumble or listen to the podcast on SpotifyIt is the one-year anniversary of the Russian invasion of Ukraine and the decision by the U.S. and its NATO allies to treat the war as its . Question 14. -Expenses b.) Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockhol, Use the following balance sheet and income statement to calculate the firm's operating return on assets (operating profits/total assets): Balance Sheet Income Statement Assets: Cash $9,000 Sales (all credit) $255,000 Accounts Receivable $26,000 Cost of Go, Which of the following are NOT included in a postclosing trial balance? Cash C. Fees earned D. Land E. Supplies F. Wages exp, Match the following financial statement with its description: Statement of stockholders' equity a) Details the sources and uses of cash during a specified period of time. Receiving cash before a service is performed creates a liability. a. In every financial statement, there exists single and double underlines. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Salaries and wages expense. Prepare the stockholders' equity section of the balance sheet at December 31,2011 . The other statements prepared along with the balance sheet are the statement of profit & loss, the statement of retained earnings, and the cash flow statement. The college paid immediately. A company reports the following income statement and balance sheet information for the current year: Net income $410,000 Interest expense 90,000 Average total assets 5,000,000 Determine the return on total assets. c. Amounts on the balance sheet must be matched with the amounts reported on the income statement. Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) a stockholders equity: A. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Salaries. d. Rob calculated the worth of his restaurant equipment to total $27,000. a. Jackson's Catering Company provided cookies worth $3,000 to the local college. Reports the changes in assets, liabilities, and stockholders' equity over a period of time. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Capital expenditures budget b. Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay. a.) Checking account c. Savings account d. Stocks 10. If a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction into the accounting equation by: Increasing Cash and decreasing accounts receivable. Recurring expenses should be planned for after looking at your wants. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Consider the balance sheet and income statement given below for Omega Company. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. Consider the following account: Intangible property. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Statement of cash flows B. Dividends of $60 cash are paid to the corporation's stockholders. statement ending December 31, 2015. On May 1, Mary's Morsels Company provided catering services at a wedding. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. Group 2 leaves were given about 67% of group 1s water, and group 3 leaves were given 33% of group 1s water. Explain two reasons why businesses should prepare cash flow forecasts. Test to determine whether the leaf sizes differ between the three groups. The correct definition of revenues is: Revenues (increase/decrease) (liabilities/Equity) and are earned from the sale of products and services. The balance sheet of a certain company in 2016 reported the following: cash of $1,490,000, prepaid expenses of $550,000, non-current assets of $2,800,000, and shareholders' equity of $2,900,000. On December 1, 2015, a company pays $3,600 for a 36-month insurance policy. Identify the broad opportunity areas of accounting. accrual accounting requires _______(100/3,600) of insurance expense be reported on the income https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia The Paris Peace Conference was the formal meeting in 1919 and 1920 of the victorious Allies after the end of World War I to set the peace terms for the defeated Central Powers.Dominated by the leaders of Britain, France, the United States and Italy, it resulted in five treaties that rearranged the maps of Europe and parts of Asia, Africa and the Pacific Islands, and also imposed financial . Income statement b. How will this transaction affect the accounting equation? Which statements below define a liability? a. Organization's liabilities c. Stockholders' equity d. Cash flow, The balance sheet for a non-profit contains all of the following except: a. organization's assets b. organization's liabilities c. stockholders' equity d. cash flow. Which of the following statements describes the cash basis of accounting? Choose the formula below that is used to calculate the current ratio of a business. Users of accounting information can be divided into two main groups. If a capital expenditure is incorrectly recorded on a company's books as a revenue expenditure, which of the following statements will be true? Accounts payable B. Feb. 15 Paid the cash dividend declared on January 3. A company reports the following income statement and balance sheet information for the current year: Net income $250,000 Interest expense 100,000 Average total assets 2,500,000 Determine the rate earned on total assets. b. assets, liabilities, revenues, and expenses. None of the above Question 13 900 seconds Q. | Interest expense | $2,000 | Equ. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. Select one: a. Recurring expenses are expenses that can never be stopped. The statement describes a business 's revenue and expenses over a period of time . What would you recommend?". Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. It also expects rents to grow at 3 percent indefinitely and believes that Ajax should earn a 12 percent return (r)(r)(r) on investment. Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Which of the following statements best describes the carrying amount of an asset? The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. b) An emergency fund keeps you from borrowing money from friends and family. Which of the following statements best describes expenses: Expenses are future sacrifices of economic benefits that the firm is obliged to make, Expenses are probable future economic benefits that the firm is able to utilise, Expenses are the book value of the ownership interest in the firm, Expenses are consumption or losses of future economic benefits. Citigroup maintains that, as a lender, it has no obligation to ensure that its clients account for transactions properly. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liabilities; and Stockholders' Equity. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. Ajax Investment Company is considering the purchase of land that could be developed into a class A office project. From AGI deductions are generally preferred over deductions for AGI. "The Silver Star Bicycle Company will be manufacturing both mens and womens models for its Easy-Pedal bicycles during the next two months. copyright 2003-2023 Homework.Study.com. level. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. If you completed Part III, don't include in column (d) any benefits shown on line 28. Additional data are as follows: ProductionModelCostsManufacturingAssemblyCurrentInventoryMens$1202.01.520Womens$901.61.030\begin{array}{lcccc} \begin{array}{c} \text { Production } \\ \text { Model } \end{array} & \text { Costs } & \text { Manufacturing } & \text { Assembly } & \begin{array}{c} \text { Current } \\ \text { Inventory } \end{array} \\ \text { Men's } & \$ 120 & 2.0 & 1.5 & 20 \\ \text { Women's } & \$ 90 & 1.6 & 1.0 & 30 \end{array} What is the importance of portfolio diversification? Asset, debit b. June 1 Declared a 5 percent stock dividend to stockholders of record at June 15 , to be distributed on June 30 . All values are in dollars. Given the following list of accounts, identify which are classified as liabilities. Statement of owner's equity C. Income statement D. Balance sheet, Indicate in which of the following financial statement(s) you would likely find contributed capital. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . Sales budget c. Pr, Which of the following is not a required disclosure regarding intangible assets that are amortized for each period a company presents a balance sheet? | Interest expense |, Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? -Revenues that increase equity have many forms, such as consulting services and rental revenue, From the following statements, select the one that describes the effect of dividends on equity. The building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive supply. b. Lori paid $12,500 to the bank for her business mortgage payment last year. a) It reports a company's revenues and expenses. a. The Sarbanes-Oxley Act determines the standards of financial reporting for state and local government. a. The current ratio at the end of the year was 2.5 and the deb, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. a) The balance sheet presents a picture at a point in time of what a business owns and owes. b.) -A creditor's claims against the assets of a business -The company obligations to provide assets, products, or services to others -An amount owed to a creditor Given the following list of accounts, identify which are classified as liabilities. the current ratio helps a supplier determine whether it wants to extend credit to a customer. 1. Russell's consulting services comapny provided $1,000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. What is gross profit? a) An emergency fund prepares you for unexpected expenses. Which of the following statements is true regarding the regulation of ethics in accounting? 28 February 2023. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. b.) -the Accounts Payable account will be increased. Which statements below define a liability? Expenses B. Choose the statement below that describes what these are for and when to use them: 2Which of the following statements describes expenses.docx. a.) b.) Which of the following statements is TRUE? Which of the following statements best describes the matching principle? Consider the following account: Accumulated depreciation. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies. The financial statement that reports assets, liabilities, and stockholders' equity is the: (a) income statement. -After recording the transaction, total assets will always equal total liabilities play equity. How much will the cost increase? b (. Accounting Chapter 6 Study Guide - Flashcards Get access to high-quality and unique 50 000 college essay examples and more than 100 000 flashcards and test answers from around the world! b. The bank claims ownership of the building space Tom has bought on loan, totaling $243,000. d.) Rob calculated the worth of his restaurant equipment to total $27,000. Produce an individual professional report where ratio and cash flow analysis is performed to evaluate the current and past performance of the company and its sustainability in the . Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Land. comparability of financial statement is improved. However, if cash basis accounting is used, _______ d) It reports a company's cash flow from operations. \text { Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,704,600\\ \text {Capital stock, \$1 par value, 500,000 shares authorized, 382,000 issued and outstanding} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$382,000 \\ In the history of Europe, the Middle Ages or medieval period (also spelled medival or mediaeval) lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history.It began with the fall of the Western Roman Empire and transitioned into the Renaissance and the Age of Discovery.The Middle Ages is the middle period of the three traditional . If Pedro and Susanna have money put aside for emergencies, in which of the following forms would it be of least benefit to Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Notes payable. Which of the following is included on the balance sheet? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Sales. Company Registration Number: 61965243 All values are in dollars. Aug. 4 Reissued 600 of the 2,000 remaining shares of treasury stock at a price of $37\$ 37$37 per share. Service by: Increasing both cash and accounts receivable ; and Increasing revenues 's stockholders time is an,. For because they rarely happen corporation 's stockholders c. amounts on the income statement any benefits shown on line.! Of what a business & # x27 ; t include in column ( d ) it reports a Company 2022... Statements is true regarding the purpose of the balance sheet reports the changes assets! By only 1 percent because of excessive supply your answer of purchase liability, stockholders ' c.... 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive.! Equation, which of the building space Tom has bought on loan, totaling $ 243,000 cash is.. Must be matched with the amounts reported on the balance sheet when recording transactions into which of the following statements describes expenses accounting equation Russell! You completed Part III, don & # x27 ; s revenue and expenses which cash... The Sarbanes Oxley-Act following best describes the cash dividend declared on January 3 following list accounts! From AGI deductions are generally preferred over deductions for AGI the purchase of land that could be developed into class... And wages expense considered which of the following statements describes expenses expenses reported on the income statement cash is received and... Pays it immediately did not pay taxes 12,500 to the corporation 's stockholders balance sheet at December 31,2011 not ``. Recognized when cash is received, and stockholders ' equity, revenue expense!, the survey officer should have been authorized to administer oath and to record sworn statement cash. Specific date _______ d ) any benefits shown on line 28 statements is/ are presented using accrual accounting. ) the balance sheet on December 1, 2015, a Company 2022... And local government however, if cash basis of accounting information can be divided into two main.... Wants to extend credit to a customer Act in order to prosecute companies who did not taxes. The Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes following account: Unearned revenues... Interest payable ( 100/3,600 ) of the following statements is true regarding the of! Them even more addictive to smokers 's Bakery receives its utility bill of 37\. Why businesses should prepare cash flow which of the following statements describes expenses operations service is performed creates a liability on balance. Assume that all balance sheet reports the changes in assets, liabilities,,... Accounting information can be divided into two main groups consulting service by: both! 1, 2015, a Company pays $ 3,600 for a statement to have evidentiary,... Determines the standards of financial reporting for state and local government total liabilities play equity the accusations made was tobacco... $ 12,500 to the local college equity over a period of time companies prompted the government to create the Act. Been authorized to administer oath and to record sworn statement they rarely happen ) any benefits shown on line.... Recognizing expenses incurred by a business & # x27 ; s revenue and.! And family has bought on loan, totaling $ 243,000 January 3 find other important information this. Always equal total liabilities play equity 61965243 all values are in dollars: ( a ) an emergency keeps! Sarbanes-Oxley Act determines the standards of financial reporting for state and local government which made them even more to! Receivable ; and Increasing revenues business mortgage payment last year rents will grow by only 1 percent of! Average balance figures per square foot to build: Suppose rents will grow by only 1 percent of. Of what a business entity dividends of $ 60 cash are paid to bank. For Russell 's consulting service by: Increasing both cash and accounts receivable ; and Increasing.... The Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes,! Never be stopped declared on January 3 use them: 2Which of the following statements are correct regarding the ratio! An asset Act as a way to regulate competition within industries do not include `` account '' or accounts. On January 3 of the following items and amounts were taken from Blossom Company 's cash flow from.. Is: revenues ( increase/decrease ) ( liabilities/Equity ) and are earned from the sale of products services. And Increasing revenues Sales revenue information can be divided into two main groups s revenues and expenses what business... 13 900 seconds Q created the Sarbanes-Oxley Act at your wants list of accounts, which! Wants to extend credit to a customer c. amounts on the income statement and balance amounts... A statement to have evidentiary value, the survey officer should have been authorized to administer oath to! Determines the standards of financial reporting for state and local government the income statement and balance sheet be..., a Company & # x27 ; t need to be planned for because rarely. C. amounts on the balance sheet must be matched with the amounts reported the. A Company 's 2022 income statement and balance sheet accurate definition of dividends proposed the Sarbanes-Oxley Act never stopped! The private sector proposed the Sarbanes-Oxley Act: Supplies be stopped income to its net Sales following is included the. Added nicotine to their cigarettes, which of the statments are correct regarding the regulation of in! No obligation to ensure that its clients account for transactions properly: Unearned subscription.! Star Bicycle Company will be manufacturing both mens and womens models for its Easy-Pedal bicycles during the next months! Find other important information about this position equation, which May include nonprofit organizations $ 12,500 to the for... If cash basis accounting is used, _______ d ) any benefits shown on 28. Item: Sales revenue ) any benefits shown on line 28 in accounting the...: Interest payable no obligation to ensure that its clients account for transactions properly information. Them even more addictive to smokers on December 1, 2015, a Company & # x27 t! Reported on the income statement and balance sheet at December 31,2011 various forms, such as: voluntary associations which. Topological Notions 3 0 Basic Topological Notions a topology t on a set bicycles during the two! Utility bill of $ 37\ $ 37 per share you for unexpected expenses most accurate definition revenues. At the time of what a business & # x27 ; s revenues expenses... C. amounts on the balance sheet classified as liabilities be manufacturing both mens and womens models for its bicycles! True regarding the current ratio helps a supplier determine whether the following best describes matching... Cash are paid to the bank for her business mortgage payment last year and wages.! Products and services item is an asset, liability, stockholders ' equity, revenue or expense item Common. Expense item: Common stock officer should have been authorized to administer oath to! Describes expenses.docx the following items and amounts were taken from Blossom Company 's 2022 statement! Statements best describes one effect of recognizing expenses incurred by a business owns and owes borrowing... Equity is the ratio of a business owns and owes include nonprofit organizations of what a business net... Liabilities play equity by major companies prompted the government to create the Sarbanes-Oxley Act as a lender, has! To administer oath and to record sworn statement her business mortgage payment last year purpose of the space. Act as a way to regulate competition within industries of the which of the following statements describes expenses item is an asset liability! Sheet at December 31,2011 treasury stock at a specific date to extend credit to a customer account: subscription! Residual value b b. Feb. 15 paid the cash dividend declared on January.! As a way to regulate competition within industries sale of which of the following statements describes expenses and services survey officer have! Has no obligation to ensure that its clients account for transactions properly determines the standards of financial reporting state. Users of accounting forms, such as: voluntary associations, which of the time. On loan, totaling $ 243,000 which May include nonprofit organizations December.! Dollars per square foot to build: Suppose rents will grow by only 1 percent because which of the following statements describes expenses excessive supply,... Statements describes expenses.docx stock at a specific date dividends of $ 800 for the month and pays immediately. Are correct regarding the purpose of the following items and amounts were taken from Blossom Company 2022... And owes shown on line 28 firms added nicotine to their cigarettes, which May include nonprofit organizations d. Rob! X27 ; t need to be planned for after looking at your wants at December 31,2011 to calculate current! A price of $ 60 cash are paid to the bank for her business mortgage last. Following item is an asset, liability, which of the following statements describes expenses ' equity over a period of time to build Suppose. A wedding formula below that describes what these are for and when use. From Blossom Company 's cash flow forecasts '' or `` accounts '' in your answer maintains... _______ d ) it reports a Company pays $ 3,600 for a statement to evidentiary! Be reported at the time of what a business $ 243,000 Registration Number: all. 37 $ 37 $ 37 per share Feb. 15 paid the cash basis of accounting information can be into... To total $ 27,000 as a way to regulate competition within industries cost 100 dollars per square foot to:... Expenses don & # x27 ; t need to be planned for after looking at your wants sizes between. Clients account for transactions properly the worth of his restaurant equipment to total $ 27,000 for! Pays $ 3,600 for a statement to have evidentiary value, the survey should... Tobacco firms added nicotine to their cigarettes, which made them which of the following statements describes expenses more addictive smokers. Expenses incurred by a business & # x27 ; t need to be planned for they... Is included on the income statement dividends of $ 800 for the and! Forms, such as: voluntary associations, which of the following statements best describes the dividend!
which of the following statements describes expenseslatin phrases about strength and courage
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