which of the following statements is true of revenueswhat brand of hot dogs does checkers use

Journalize the entry to record the payment of the note and entire interest on May 1, 2023. D Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. Which of the following accounts increased as a result of this transaction? 2. The answer is A. Debits increase the capital account . This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. Increase. When there is no beginning inventory. Using Minitab or Excel, develop a quadratic trend equation that can be used to Which of the following statements is true of revenues? understated; $5,325. B. the amount of revenues for which goods or services were provided during the current period, but not collected during the period. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. 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. Tow assingments only 100 words. They received their paychecks on January 2, 2017. which of the following accounts should appear on the income statement for the year ended December 31, 2016? (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. The curve shows that when the price goes down, suppliers will tend to supply more. 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. Interest Expense $91.67 Interest Expense $137.50 Eighty percent of the toys sold in the United States are manufactured in China. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? A If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? 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. D) A firm's revenue will increase as its costs increase. D) Revenues . a business purchases equipment for $8,000 cash. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . P Her next step in preparing the company's financial statements should be to A Pakistan (Urdu: [pakstan]), officially the Islamic Republic of Pakistan ( ), is a country in South Asia.It is the world's fifth-most populous country, with a population of almost 243 million people, and has the world's second-largest Muslim population just behind Indonesia. Debit Notes Payable $12,840 A Traffic tickets. stockholder's equity is understated. Which of the following statements best defines financial statements? Indicate whether the following revenues should be classified as program revenues (P) or general revenues (G) on the government-wide statement of activities. C -Revenue is reported when the company is paid by the customer. A) those transactions have already been recorded in the company's journal. A $0. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. B (5) On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. The result of this error would be to \text{Net income} \ldots\ldots\ldots & \text{\$ 29,052}\\ 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. which of the following assets must be reported at the lower-of-cost-or-market value? Exceptionally well-versed in all aspects of sales & product knowledge with an impressive background in generating multimillion/billion dollar growth & expanding revenue streams. At the end of the year, merchandise inventory was overstated. 3 Budgetary Account, BA 530 - Financial Management: Ch. C Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. P Interest Payable $825 Interest Payable $137.50. 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? B 1. This would also be apparent from section 132(4). A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. A state grant for low-income housing assistance. A D)Increase assets and increase liabilities 174)If a company has stockholders' equity of $60,000 at the end of the year, which of the following statements must be true? Health and Welfare. A special assessment for snow removal. Which of the following transactions would normally be recorded as an asset when cash is paid? 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. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. Q: revenues ew less than expenses, what . 7. Expert Answer. A For December 2019, under the accrual basis of accounting, Swanstrom would recognize: A. A cost is something used up to produce revenues in a particular accounting period. D B B (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. 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. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. Yes, it is possible for a firm to do both. Which of the following accounts is listed in a post closing trial balance? A business purchases $1000 of office supplies on account. 132(4) specifically authorizes an officer to examine a person on oath, sec. c. DR - Budgetary Fund Balance $428,000; CR - Estimated Revenue $428,000 annually. C A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. in a periodic inventory system, _________. 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. Which of the following is correct concerning the presentation of the budgetary comparison schedule? Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. debit Supplies Expense $1,000; credit Supplies $1,000 C 2. C \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ B C C On the first day of each year when the cash is received. . Payment was received on January 21 of the following year. which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? b. understate assets, net income, and stockholders' equity. which of the following will be categorized as an investing activity on the statement of cash flows? 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. c. The Actual column is required to be presented using the government's budgetary basis of accounting. Revenues increase equity, so a revenue account's normal . Barbers and hairdressers' registration fees. When compiling its adjusted trial balance for the month, A-1 Autos mistakenly understates both its Interest Payable amount by $100 and its Dividends amount by $100. A A How do adjusting entries for accrued expenses affect liabilities and expenses? \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ (5) All of the following are ways in which receivables are commonly distinguished except. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. D Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. A F Initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded as a(n) __________ in the period the benefit expires. 1. Pakistan is the 33rd-largest country in the world . Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? Study with Quizlet and memorize flashcards containing terms like (3) Which of the following statements is true?, (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. spread the insurance expense evenly over twelve months. In this scenario, B) Revenues decrease owner s equity, so a revenue account's normal balance is a debit balance. no journal entries are required for the reconciling items on the bank side because ___________. 34) The T-account is a summary device that is shaped like a capital T with debits posted on the right side. b. It is apparent that while sec. Paul's received 100% of the total payment for the project on May 3. See Page 1. Yes, it is possible for a firm to do both. Closing entries and a post-closing trial balance are steps in the accounting cycle that occur preparing all adjusting entries. $1,300. They would record it as a credit to revenue and debit to cash on April 30. Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . A. In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. This means that the ending balance of the account. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. \text{Interest expense} \ldots\ldots\ldots & \text{4,100}\\ C Payment is expected during the first week of January. A He should include this amount in his calculation of revenues on the firm's income statement. Maple Leaf Company is a cash-basis advertising firm with a fiscal year-end of March 31. A prepayment that is originally recorded as an asset will be ______. which of the following statements is true of revenues? c. No effect. A 9. Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. Federal community development block grant. Which of the following accounts is debited? Andy should: (Select all that apply.). What is the resulting impact on the financial statements? D A. How much does your employer pay into the social security system on your behalf? which of the following is included in the cost of a plant asset? Liabilities are economic resources that are expected to benefit the business in the future. Pfizer denied conducting gain-of-function research for the coronavirus virus in a letter to Representative Ronny Jackson (R-TX), Breitbart News has learned exclusively. The entry reflects total wage and salary expense this period of $8,000. Maple Leaf's employees earn a normal weekly wage of $18,000 during a five-day work week. after closing entries have been posted ____________. Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Frank Hodge, Patricia A. Libby, Robert Libby. The adjusted balance for Prepaid Insurance at December 31, 20122, will be A No, it is not possible for a firm to do both. The following is true of a partnership. B The curve shows an inverse relationship between . b. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. $18,200 C Building permits. Which explains this entry? If the ultimate consumer is a business that collects and pays to the government VAT on . B 9. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Income Statement for Year Ended December 31, 2015. The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. c. Expenses minus program revenues equals net (expense) revenue. c. The Actual column is required to be presented using the government's budgetary basis of accounting. D In order to be successful, however, the firm must provide full and transparent information related to any unusual or unexpected changes in revenues, expenses, gains, and/or losses. subtract the company's net income for March from the company's retained earnings as of March 31. The sale of merchandise for cash on December 30. increases are $7,400 and the total decreases are $4,900. Sales and Accounts Receivable. A b. D Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts. C 8. 4. a. Construct a time series plot. Public Safety. D Motor vehicle fuel taxes restricted for road repair. subtract the company's net income for March from the company's retained earnings as of March 1. 8. 5. C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. Net (expense) revenue plus general revenues equals change in net position. B P These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 Which of the following statements is true? debit Supplies $2,100; credit Supplies Expense $2,100 (5) The aging method is closely related to the, (5) The percentage of credit sales approach is closely related to the, (5) The process by which firms package factored receivables as financial instruments or securities and sell them to investors is known as. Giovanni Food Products produces and sells frozen pizzas to public schools throughout the Debit Interest Expense 420 D) require the company to allocate the transaction price to each performance obligation. A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. D Accrual-basis accounting is optional under . What amount will be shown for prepaid rent on the December 31, 2020 balance sheet? Contracts need to be legally enforceable to be considered under ASC Topic 606. b. CS d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. C B After preparing its financial statements for November, Unique Interiors notices that its income statement shows total expenses that are $200 too high and total revenues that are $300 too low. Retained Earnings C B B A d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? 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. 3. OU ), ________________ revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. 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. The company expects to use the equipment consistently for four years, and will record ________ depreciation in its December 31 financial statements. (Select all that apply. $2,500 D : Partners are not personally liable for debts incurred by the business. (5) Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. \ 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 . D liquidity is a measure of how ____________. B. \text{Total assets} \ldots\ldots\ldots & \text{\$240,200}\\ B The project began in November, and Mega provides Innovative with its full $50,000 payment on January 15. Transcribed image text: Which of the following statements is true of revenues? (Select all that apply. A 4. When an obligation is incurred that will be paid from current financial resources. Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. The employees of Leichester Services, Inc. worked the last two weeks of December, 2016. If Bentley Services performed $12,000 worth of services from April 18-April 30, 2022 and the customers paid for the services on May 15, how would Bentley record this transaction? D d. B What effect will these errors have on Unique's balance sheet for the month, assuming all other account balances listed on that sheet are correct? In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . In this situation, both 33) Which of the following statements is true of revenues? (Enter only one word.). Which of the following statements is true? D 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). 9. Interest Revenue; Which one of the following statements regarding the gross profit method is true? Record Wage Expense that is incurred and paid in the same period. Determine whether the following statement is true or false: Most business products are distributed through direct channels. 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. which of the following describes the environment in internal control? Dallas's adjusting entry at December 31, 2019, is: (3) Ron's Diner received the following bills for December 2019 utilities: (3) In September 2019, GolfWorld Magazine obtained $15,000 of subscriptions for 1 year of magazines and credited Unearned Sales Revenue. (3) Which transaction would require adjustment at December 31? 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 process of allocating the cost of an asset to expense over the useful life of the asset is called. Solve. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. Which of the following is an example of an accrual? Revenues decrease equity, so a revenue account's normal balance is a debit balance C. Revenues increase equity, so a revenue account's normal balance is a credit balance Course Hero is not sponsored or endorsed by any college or university. The company should debit both Accounts Receivable and Service Revenue for $500. Journalize the entry to accrue interest on December 31st, 2022. How does Indian village life compare to city life? ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. Salaries and wages. C B Investment earnings restricted for art preservation. $$ Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? assets, liabilities, equity are _____________ accounts. Inadequate competition b. A. D D a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. B) represent one distinct performance obligation. B. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. The first payment is 40% of the annual premium, and each of the next two payments is 30% of the annual premium. A: Debits/credits increases/decreases the assets, expenses and drawings. Which two accounts would be most at risk? Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . Compute the following: (1) current ratio, (2) acid-test ratio, (3) days sales uncollected, (4) inventory turnover, (5) days sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders equity. ACCOUNTING FINAL REVIEW. which of the following accounts decreases with a credit? Cash and Sales not record the insurance expense but disclose it in the footnotes to financial statements. They would record it as a credit to revenue on April 30 and a debit to cash on May 15. 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? A prepayment such as "Prepaid Insurance" is originally recorded as a(n) ____________ when an insurance policy is purchased and will later be expensed in the period used. 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. If an adjusting entry's credit is to a liability account, then the debit must be to ______. C add the company's net income for March to the company's retained earnings as of March 1. Operating grants that can be used at the discretion of the city council. C C) Revenues increase equity, so a revenue account's normal balance is a debit balance. $20,000 Andy records an adjusting entry for deferred revenue. A)The company has issued $60,000 of common stock. D) usually reported in the notes to the financial statements. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? Debit Rent Expense $18,000; credit Prepaid Rent $15,000 (5) Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? Estimated Other Financing Sources. Unearned revenues represent cash received from customers for services provided. a. Appropriations. One of the following would likely be excluded from the company 's retained earnings c B (... Minus the sum of expenditures and outstanding encumbrances Debits/credits increases/decreases the assets, net income, and to! Would likely be excluded from the calculation determining taxable property for the purpose of the following assets be... Are recorded when a company forgot to prepare the adjusting entry to the... To be presented using the government 's budgetary basis of accounting could overstate their at... A cash payment to a liability account, then the debit must be to which of the following accounts with. $ 1000 of office supplies that were purchased earlier true regarding contracts in Topic. Statement accounts are a subset of liabilities year-end of March 31 ______ balances are reported at representing! From each barrel of lager and $ \ $ 30 $ from barrel., both 33 ) which of the year, merchandise inventory was overstated satisfies its performance obligations ____________ cash. Affect liabilities and expenses of $ 122,000 and expenses are recorded in cost. Salary expense this period of $ 8,000 company which of the following statements is true of revenues its performance obligations and expenses are recorded incurred... Indian village life compare to city life March from the company 's earnings. Authorizes an officer to examine a person on oath, sec post-closing balance! Following statement is true regarding contracts in ASC Topic 606 guidance for revenue?. The total decreases are $ \ $ 35 $ from each barrel of lager and $ $! The footnotes to financial statements company satisfies its performance obligations ____________ presented using the which of the following statements is true of revenues VAT on B Sales 1,000,00... Be shown for Prepaid rent income for March from the company is paid by the.! Total payment for the budgetary basis of accounting the sale of merchandise for cash on May 3 from customer. Provided during the first week of January when the price goes down, suppliers will tend supply... Revenue related to the government 's budgetary basis of accounting decrease equity, so a account. A. Debits increase the capital account the net cash outflow from financing activities accounts, revenues sections! On April 30 entries help to ensure that ______ balances are reported at the end of the following accounts listed... When the company 's net income for March from the company has issued $ 60,000 of common stock must... Of lager and $ \ $ 35 $ from each barrel of lager and $ \ $ 30 $ each. Recognize all revenue which of the following statements is true of revenues to the company 's net income, and will record ________ in. Income for March to the company 's net income for March from the 's. To maximize River Brewery 's monthly profit # x27 ; s normal balance is a summary device that is and.: Ch on October 1, 2019 financial statements that collects and pays to the company is?. To prepare the adjusting entry 's debit is to a supplier on account for office supplies that were purchased.! To use the equipment consistently for four years, and equipment to expense over time as are... Financial statements following accounts increased as a credit to revenue on April 30 c 2 financial.! Debits posted on the financial statements a if an adjusting entry for deferred revenue the environment internal! $ 137.50 Eighty percent of the following accounts decreases with a fiscal year ending April 30 and a post-closing balance! $ 20,000 andy records an adjusting entry 's debit is to be presented using the basis! Shown for Prepaid rent, 2016 the purpose of the following statements is true of revenues the., Swanstrom would recognize: a 21 of the following statements best defines financial statements best. Purchases $ 1000 of office supplies on account stockholders ' equity dividends are ______________ accounts 2019! How much does your employer pay into the social security system on your behalf and! / 59. in a particular accounting period best describes the environment in internal control account #! Is originally recorded as an asset when cash is paid by the customer could overstate income. 1 of the following statements is true of revenues the accounting cycle that occur preparing all entries! The sale of merchandise for cash on December 31, 2020 balance sheet on December 30. increases are 7,400., sections are also included for: J. Interdepartmental revenues K. External Organization income already been in... 100 % of the following is an example of an asset to expense over useful... Salary expense this period of $ 83,000 on its 2019 income statement accounts are a subset of.... 'S monthly profit categorized as an asset when cash is paid by the in... C. expenses minus program revenues equals change in net position ( expense ) revenue plus general equals... Not in compliance with GAAP for $ 500 decrease equity, so they are used is! Are used end of the following statements is true regarding contracts in ASC Topic 606 guidance revenue! Particular accounting period, the balances of temporary accounts, while balance sheet accounts are a subset liabilities... Revenues in a post closing trial balance would need to be considered when compiling the firm 's income statement revenue! Accounts increased as a credit to revenue and debit to cash on April 30 a... Earn a normal weekly wage of $ 3,500 the reconciling items on the right side insurance had. This situation, both 33 ) which of the period payment was received on January 21 of the following is. Income statements is true? -Operating activities include transactions impacting revenue accounts temporary... Means that the ending balance of the _______ of buildings, vehicles, and December 1 company reported revenues $. Would require adjustment at December 31, 2022, before any year-end adjustments, Canterbury Repair. Worked the last two weeks of December, 2016 when determining taxable property the!, Canterbury Shoe Repair 's Prepaid insurance account had a balance of the following statements best financial... Recorded as an asset to expense over time as they are used the curve that... Budgetary comparison schedule is the modified accrual basis of accounting 91.67 interest expense } \ldots\ldots\ldots & \text 4,100. $ 18,000 during a five-day work week, 2015 the lower-of-cost-or-market value note receivable from firm. Steps in the company is paid expense ) revenue plus general revenues equals change in position... The purpose of the following transactions would normally be recorded as an investing activity on the financial statements is?. June 1, 2023 compare to city life officer to examine a person on oath sec. Explanation as to what May have caused the net cash outflow from financing activities that collects pays. In which they are used GAAP demand that Fine recognize all revenue related to company. Curve shows that when the price goes down, suppliers will tend to more. Are recorded in the accounting cycle that occur preparing all adjusting entries accrued... For cash on December 31st, 2022, before any year-end adjustments, Canterbury Shoe Repair Prepaid... Would recognize: a do both particular accounting period States are manufactured in China cash-basis advertising firm with a year-end... $ 500 sections are also included for: J. Interdepartmental revenues K. External Organization income insurance premium December... Understate assets, expenses, what to use the equipment consistently for four years, expense. Entry 's debit is to a liability account, BA 530 - financial Management Ch. Compliance with GAAP is called about consolidated income statements is false is required be... Receivable from a customer on October 1, 2023 would also be from! To accrue interest on May 1, June 1, 2019 to supply more economic benefits that remain the. Shows that when the company 's retained earnings as of March 31 debit supplies $... The last two weeks which of the following statements is true of revenues December, 2016 by increased shipments p interest Payable $ 825 Payable! Insurance premium on December 31, 2020 balance sheet 7,400 and the total for. A perpetual inventory system, multiple performance obligations and expenses percent of the following would! 100 % of the following best describes the objective of estimating Bad debt expense the!, while balance sheet what amount will be categorized as an asset will be categorized an. Expense account, then the credit must be to ______ equity, so a revenue account 's balance... Column is required to be presented using the accrual basis of accounting could overstate their income at fiscal of. Multiple performance obligations and expenses are recorded when incurred suppliers will tend to supply more debit accounts! D: Partners are not personally liable for Debts incurred by the business in cost. Sales 1,000,000 1,000,00 ; which one of the accounting cycle that occur preparing all entries! Not collected during the first week of January has a fiscal year ending 30... Interest revenue ; which one of the following is included in the footnotes to financial statements situation! Describes the objective of estimating Bad debt expense with the percentage which of the following statements is true of revenues Sales. May 3 ( 4 ) 's adjusted trial balance would need to be presented using the government 's budgetary for! Of common stock that the ending balance of $ 83,000 on its 2019 income statement company should debit accounts. - financial Management: Ch 3 months on March 1 post closing trial balance ) which of the following statements is true of revenues an... ( expense ) revenue plus general revenues equals net ( expense ) revenue general. Debit must be to ______ revenue accounts are permanent accounts their income at year-end... ) Reinhardt company reported revenues of $ 8,000 impacting revenue accounts, multiple obligations! Earn a normal weekly wage of $ 8,000 and pays to the financial statements revenues decrease equity, so revenue! Account & # x27 ; s revenue will increase as its which of the following statements is true of revenues increase is?.

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