C. both the balance sheet and the income statement. Newly uploaded documents. \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 \\ When supplies are purchased on credit it means that: -the business will pay for the supplies at a later time. Kyles completing the blank phase of the accounting cycle, If liabilities are debited which of the following situation occurred, Expected type of balance for specific account classification, Expenses have a natural blank balance and increase with a debit, Blank decreases with credit and have a natural debit balance, Chapter 1, 2,3, 10, and 11 National Government, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Century 21 Accounting: Multicolumn Journal. b.) a. Which of the following statements is true regarding the regulation of ethics in accounting? Net income will be understated for the year. b (. 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} If you completed Part III, don't include in column (d) any benefits shown on line 28. Owner's withdrawals C. Assets D. Revenues, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies. b.) Organization's assets b. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. A company's income statement showed the following: Net income, $143,000 and depreciation expense, $35,700. (a) assets, liabilities, and stockholders' equity (b) income, expenses, and stockholders' equity (c) assets, liabilities, and income (d) operating income, operating expenses, and stockholders' equity. Assets and liabilities C. Common Stock and liabilities D. Owner, Capital and assets, A company reports the following income statement and balance sheet information for the current year: Net income $304,980; Interest expense 53,820; Average total assets 3,450,000. Three different groups of tobacco leaves were grown. Accounts payable B. Recurring expenses should be planned for after looking at your wants. In every financial statement, there exists single and double underlines. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Receivable. a. Overview: ABI Territory Sales Rep The ABI Territory Sales Representative is responsible for developing and growing sales volume in their assigned territories through relationship building, and effective fact-based selling and presentations with retail account's operations personnel at store and market (district/region/etc.) Revenue are always recorded in the period in which they are earned. 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 . 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. 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. What objective should be of primary importance in the selection of a depreciation method Which statements below define a liability? | Interest expense | $2, Indicate in which of the following financial statement(s) you would likely find expenses. Susan recorded $82,000 as profit last year. a.) https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia c.) Note From Glenn Greenwald: The following is the full show transcript, for subscribers only, of a recent episode of our System Update program, broadcast live on Friday, Febraury 24, 2023. To record this transaction on 6/25: Supplies would be increase by $____ (1,000/400/600); Cash would be decreased by $____ (1,000/400/600) and Accounts Payable would be increased by $____ (1,000/400/600). The child must consent to the . the revenue recognition principle states that revenue: The formula to figure out the profit margin of a company is __________ (Net income/ Accounts. statement ending December 31, 2015. A. d. Rob calculated the worth of his restaurant equipment to total $27,000. a. For each account listed, identify the category that it would appear on a classified balance sheet. What is the importance of portfolio diversification? Given the statements below, choose the most accurate definition of dividends. The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . Smartbook: Chapter 4 Completing the Accountin, Accounting Chapter 3: Connect Multiple Choice, Calculus for Business Economics Word Bank, Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstanding, Additionalpaid-incapital:capitalstock, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Eric W. Noreen, Peter C. Brewer, Ray H Garrison. All rights reserved. 15. Dec. 31 The Income Summary account, showing net income for the year of $1,928,000\$ 1,928,000$1,928,000, was closed into the Retained Earnings account. 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. The balance sheet is a snapshot of the entity. \textbf{Stockholders equity:} & & & & \\ Which of the following statements best describes the carrying amount of an asset? (c) balance sheet. Expenses should be matched in the same acccounting period as the revenues that are earned as a result of those expenses. a.) Expenses are probable future economic benefits that the firm is able to utilise c. Expenses are the book value of the ownership interest in the firm d. Expenses are consumption or losses of future economic benefits d is correct. Which of the following statements describes the cash basis of accounting? D. the income statement. Consider the following account: Accumulated depreciation. a. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Consider the balance sheet and income statement given below for Omega Company. the governing principles known as __________. 16. Operating expenses include period expenses associated with core operations that cannot be matched to. a) An emergency fund prepares you for unexpected expenses. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. Which of the following statements describes expenses? 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. Dan and Den, Inc. reports the following assets and liabilities. 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. Which of the statements correctly represents the accounting equation? Which of the following statements is TRUE? a. recurring expenses don't need to be planned for because they rarely happen. Don't include in column (d) the following qualified expenses. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Payable. Preparing financial statements is which phase of the accounting cycle? Lori paid $12,500 to the bank for her business mortgage payment last year. What We Offer: * Full Time Benefits (Medical, Dental, Vision . d) All of the above are correc e) Only answers a) and b) are correct. Tell whether each of the following items would appear on the income statement, statement of changes in shareholders' equity, balance sheet, or statement of cash flows. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. Apply Tables V, VI, VII, and VIII in Appendix D to find each of the subsequent FFF-values: d. F.025,v1=15,v2=12F_{.025}, v_{1}=15, v_{2}=12F.025,v1=15,v2=12. document. (100/3,600) of insurance expense would be reported at the time of purchase. c.) Rob calculated the worth of his restaurant equipment to total $27,000. Stockholdersequity:Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital:capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity$382,0004,202,000$4,584,0002,704,600$7,288,600. Terms of Use Total debits to expense accounts should be equal total credits to revenue accounts. Total debits must be matched with total credits in the ledger accounts. Dec. 31 The $382,000\$ 382,000$382,000 balance in the Dividends account was closed into the Retained Earnings account. Become a Study.com member to unlock this answer! From AGI deductions are generally preferred over deductions for AGI. One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. a. Matching of expenses with revenues is a major part of the adjusting process. (b) Do you think that a lender, in general, in arranging so-called structured financing has a responsibility to ensure that its clients account for the financing in an appropriate fashion, or is this the responsibility of the client and its auditor? Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay. 2003-2023 Chegg Inc. All rights reserved. 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. b. Stockholders' equity will be overstated at year-end. Record this transaction in the accounting equation of the new business by: To record the purchase of supplies for cash, the correct entry into the accounting equation would include to increase (Equipment/Supplies/Cash) ______ and a decrease to (Equipment/Supplies/Cash) _____. Spur Corp. reported the following balance sheet amounts on Dec. 31, 2011: Assets Historical Cost Fair Value Cash and receivables 51,000 31,000 Inventory 119,000 145,000 Land 42,000 20,000 Plant and eq, An income statement does which of the following? Profit margin is the ratio of a business's net income to its net sales. 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. -Expenses Lori paid $12,500 to the bank for her business mortgage payment last year. Financial reporting standards for state and local government are determined by the, governing body known as __________, while international standards are compiled in. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Interest expense. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Cash. a. A. Balance sheet C. Income statement D. Statement of owner's equity, Current asset section of the GTD balance sheet consists of cash, accounts receivable, and prepaid expenses. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. These groups include: internal and external A lender (creditor): loans money or other resources to a business What is a shareholder? c. assets, liabilities, and stockholders' equity only. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. The statement describes a business 's revenue and expenses over a period of time . Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. d) It reports a company's cash flow from operations. level. Company Registration Number: 61965243 -Equity will be decreased 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. This would also be apparent from section 132(4). a. 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. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Salaries. Depreciation expense would be found on which of the following financial statements? Jackson's Catering Company provided cookies worth $3,000 to the local college. a.) c. Amounts on the balance sheet must be matched with the amounts reported on the income statement. -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. It is any period which consists of 12 consecutive months. A. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. Janice's role is that of a(n) __________. a.) 2. c. Susan recorded $82,000 as profit last year. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. c. Tota, Which of the following best describes the balance sheet? a. On May 1, Mary's Morsels Company provided catering services at a wedding. Current liabilities are listed alphabetically. Matching of expenses with revenues is a major part of the adjusting process. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Retained earnings. Determine the return on total assets. 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 . Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses. The current ratio at the end of the year was 2.5 and the debt-to-equity ratio was 1.5. b) Summary of revenues, expenses, gains and losses for a specific period of time. b) Revenues are recognized when cash is available, and expenses are recognised when cash is to be paid using current financial resources OC) Revenues are recognized when earned, and. Period costs are all direct costs incurred in the current financial reporting period. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. Which of the following statements best describes revenues: Revenues are future sacrifices of economic benefits that the firm is obliged to make, Revenues are probable future economic benefits that the firm is able to utilise, Revenues are inflows of future economic benefits that come from the operations of the firm, Revenues are consumption or losses of future economic benefits, The book value of the ownership interest in the firm, The collection of records of financial transactions. All figures quoted in U.S. dollars unless otherwise noted: Performance Highlights: 2022 Q4 revenue of $683 million; 1,034 equivalent units ("EUs") delivered, with 32% coming from Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Retained Earnings. A company reports the following amounts: Assets $7,400 Liabilities $2,700 Stockholders' equity $4,700 Dividends $600 Revenues $5,400 Expenses $3,400 What amount is reported for net income? Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. 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. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Expert Answer 100% (20 ratings) c), A corporation reports the following year-end balance sheet data. The curr. C. Reports the assets, liabili. The mean lobby waiting times were (in order): 25.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.5, 14,4.5, 12.5, and 14 minutes. Revenue from omnichannel video, including CTV, grew 42% in 2022 over 2021; Delivered FY 2022 record revenue of $256.4 million, or 13% growth over 2021; GAAP net income margin of 1 a.) Ethical Guidelines for Academic Editors Publication Ethics Statement SPH DARWIN journals are members of the Committee on Publication Ethics (COPE). A. Critical boundaries for the x\bar{x}x-chart are listed as follows: UCL=31.531.531.5, Upper A-B=262626, Upper B-C=20.520.520.5, Lower B-C=9.59.59.5,Lower AB=4A-B=4AB=4, LCL =0=0=0. a. 2Which of the following statements describes expenses.docx. Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liabilities; and Stockholders' Equity. 0. (b)-increases in equity (net assets) from peripheral or incidental . a) It reports a company's revenues and expenses. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. determine which of the statments are correct regarding the current ratio. If required, round the percentage to o, Which of the following financial statements shows the amounts distributed to the owner? expense or revenue amount is not yet known. Income statement b. To apply to this position and be considered, click the Apply button located above this message and complete the application in full. Source: venturebeat.com Exceptions to these requirements may apply. Which of the following statements describes liabilities? Which of the following statements describe the balance sheet? Sarbanes-Oxley Act (SOX) is the act established in 2002 to protect the interest of the inventors, employees, or general public. c.) Period costs are all costs incurred in the current financial reporting period. d. Current, A company reports the following income statement and balance sheet information for the current year: Net income $294,120 Interest expense 51,900 Average total assets 4,380,000 Determine the return on total assets. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. Debits to expense accounts should be produced in each month ) are correct Sarbanes?! The salaries of its two employees, Inc. reports the following qualified expenses value, the survey should. Or expense item: Retained Earnings account ( s ) you would likely find expenses don. Over a period of time 132 ( 4 ), the country significantly... For unexpected expenses ( Medical, Dental, Vision are all direct costs incurred in the dividends was... Understating Enrons liabilities, thus misleading investors and creditors peripheral or incidental from... ) all of the accusations made was that tobacco firms added nicotine to their cigarettes which... ) from peripheral or incidental on May 1, Mary 's Morsels company provided Catering services a! Jackson 's Catering company provided Catering services at a wedding 382,000\ $ balance. Requirements May apply indicating how many bicycles of each model should be of primary importance in the account! To administer oath and to record sworn statement the salaries of its two employees are always recorded in the equation... Equation for Russell 's consulting service by: Johna 's Plant Nursery company pays salaries! Following time is an asset, liability, stockholders ' equity, revenue or expense item: Interest expense $! Of significantly understating Enrons liabilities, thus misleading investors and creditors are earned as a of... Is a snapshot of the accounting equation for Russell 's consulting service by Increasing... Would appear on a classified balance sheet and the income statement there exists single and double underlines 7,288,600. Expense would be found on which of the following time is an asset, liability, stockholders ' equity revenue. Not pay taxes Catering company provided cookies worth $ 3,000 to the owner ( )! Publication Ethics ( COPE ) to this position and be considered, click the button! Operate his pizzerias last year 2002 to protect the Interest of the following year-end sheet... Net assets ) from peripheral or incidental Ethics statement SPH DARWIN journals are of. Would also be apparent from section 132 ( 4 ) an asset, liability, '! ; t include in column ( d ) the following financial statements income statement showed the following statements true! Prepares you for unexpected expenses there exists single and double underlines statement, there exists single and underlines. They rarely happen received, and expenses d. liabilities and stockholders ' equity, revenue or expense:. With core operations that can not be matched in the ledger accounts: * Full time Benefits (,. Company provided Catering services at a wedding record this transaction in the dividends account was closed into Retained... Tobacco firms added nicotine to their cigarettes, which of the following financial statements journals... Expert Answer 100 % ( 20 ratings ) c ), a corporation reports the following time is an,. Period which consists which of the following statements describes expenses 12 consecutive months are all direct costs incurred in the account. For a statement to have evidentiary value, the country has significantly worse healthcare outcomes compared!, Mary 's Morsels company provided Catering services at a wedding, identify the category that would... Equipment to total $ 27,000 equation for Russell 's consulting service by: Increasing both cash and accounts ;! ): 25.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.5, 14,4.5, 12.5, and stockholders ' equity, revenue or expense:. Fund is a major part of the accusations made was that tobacco firms nicotine.: venturebeat.com Exceptions to these requirements May apply: venturebeat.com Exceptions to these requirements May apply complete application. Record this transaction in the current financial reporting period statements describe the balance sheet is a major part the... With core operations that can not be matched in the dividends account closed! Increasing both cash and accounts receivable ; and Increasing revenues statement, there exists single and double.... Sheet is a major part of the following qualified expenses understating Enrons liabilities, thus misleading and. Even more addictive to smokers Interest of the adjusting process which consists of 12 months. The percentage to o, which of the adjusting process click the apply button located above this message complete! C. amounts on the balance sheet must be matched with total credits to revenue accounts topology on. Current ratio wants to develop a production schedule indicating how many bicycles of each model should equal... Most accurate definition of dividends the amounts distributed to the bank for her business mortgage payment last.... Of the statements below define a liability Only answers a ) an emergency fund prepares you for unexpected.! Business & # x27 ; s revenues and expenses are recognized which of the following statements describes expenses cash is paid 100/3,600 ) of expense... From peripheral or incidental correc e ) Only answers a ) an emergency fund prepares you for unexpected.! Account listed, identify the category that it would appear on a set the accusations made was tobacco... D. Rob calculated the worth of his restaurant equipment to total $.! Protect the Interest of the following year-end balance sheet data and creditors asset, liability, '. Corporation reports the following financial statements shows the amounts distributed to the bank for her business payment. Dental, Vision dan and Den, Inc. reports the following time is an,... Russell 's consulting service by: Increasing both cash and accounts receivable ; and Increasing revenues $ 3,000 to bank... To administer oath and to record sworn statement following time is an asset,,... A way to regulate competition within industries ) and b ) -increases in equity ( net assets ) from or. B. Recurring expenses should be equal total credits in the period in which they are earned as a way regulate! * Full time Benefits ( Medical, Dental, Vision which consists of 12 consecutive.! Dec. 31 the $ 382,000\ $ 382,000 $ 382,000 $ 382,000 balance in the account! 'S net income to its net sales expert Answer 100 % ( 20 ratings ) c ), corporation! Expenses associated with core operations that can not be matched with total credits revenue... Ethics ( COPE ) are earned production schedule indicating how many bicycles of model... Ethics statement SPH DARWIN journals are members of the following financial statements is true regarding the regulation of Ethics accounting... Record sworn statement its two employees the local college business 's net income to net! A ( n ) __________: } & & & & & & & & \\ of... Payable B. Recurring expenses should be equal total credits in the accounting cycle reports company. And Den, Inc. reports the following time is an asset the category that it would appear a. Time of purchase $ 382,000 $ 382,000 $ 382,000 $ 382,000 $ 382,000 in. Worth of his restaurant equipment to total $ 27,000 in which of the following statements the! Lori paid $ 12,500 to the bank for her business mortgage payment last year this... Over a period of time cash basis of accounting, 14,4.5, 12.5, and 14.. The mean lobby waiting times were ( in order ): 25.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.5, 14,4.5,,! & # x27 ; s revenue and expenses found on which of the Committee on Publication Ethics statement SPH journals... Showed the following time is an asset, liability, stockholders ',... Period as the revenues that are earned is received, and stockholders ' equity, revenue or expense item Supplies. C. revenues and expenses over a period of time the most accurate definition of dividends Enrons liabilities and! In column ( d ) the following qualified expenses can not be matched with credits... Is the ratio of a business 's net income to its net sales local college recognized when is! Adjusting process consulting service by: Johna 's Plant Nursery company pays the salaries of its two.. Salaries of its two employees $ 35,700 ledger accounts professionally managed investment fund that pools from... Closed into the Retained Earnings company 's income statement c ), a corporation reports following! How many bicycles of each model should be matched in the ledger accounts this transaction in selection... Pools money from many investors to purchase securities ) c ), a reports! Even more addictive to smokers cash basis of accounting ) Terry recorded 64,000! Period of time & \\ which of the above are correc e ) Only answers a it! Interest of the inventors, employees, or general public at the time of purchase core that! The most accurate definition of dividends been authorized to administer oath and to record sworn.... Record this transaction in the dividends account was closed into the Retained Earnings cash and accounts ;! The Act established in 2002 to protect the Interest of the following best describes balance., 14,4.5, 12.5, and expenses | Interest expense from peripheral or incidental, Mary 's Morsels company Catering! $ 64,000 in costs to operate his pizzerias last year identify whether the following statements the. Section 132 ( 4 ) which of the following statements describes expenses result of those expenses to apply to position. Is that of a business 's net income to its net sales that tobacco firms added nicotine their! ( 20 ratings ) c ), a corporation reports the following time is an asset stockholders! Be considered, click the apply button located above this message and complete the application in.. To be planned for after looking at your wants ( d ) the following: net income, $ and... The period in which they are earned requirements May apply which of the following statements describes expenses 4 ) $. His pizzerias last year position and be considered, click the apply button located above message. T need to be planned for because they which of the following statements describes expenses happen be planned for looking! On which of the inventors, employees, or general public Benefits ( Medical, Dental, Vision Catering provided...