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. 0. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. an accounting system that uses the matching principle to determine when to recognize revenues, which of the following statements best describes the expense recognition (matching) principle. b. recurring expenses are expenses that can never be stopped. More, Unit 1 Challenge 1 c.) Terry recorded $64,000 in costs to operate his pizzerias last year. Multiple Choice Insurance premiums cover specific periods and are charged to expense when they are paid. 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. d) All of the above are correc e) Only answers a) and b) are correct. -After recording the transaction, total assets will always equal total liabilities play equity. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. Many people put aside money to take care of unexpected expenses. (Choose all that apply.) Given the accounts below, choose all of the ones that affect equity. The 2016 balance sheet of a certain company 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. 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 expenses are recognized when incurred. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Depreciation. 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 . c. Amounts on the balance sheet must be matched with the amounts reported on the income statement. Profit margin is the ratio of a business's net income to its net sales. Managerial Financial Taxation Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Trademark. Accounts payable B. International Financial Reporting Standards. Liabilities, in contrast to assets, do not add to the worth of a company's assets. d. revenues and expenses only. Part A Reformatted Financial Statements and Financial Analysis Based on the same company chosen in the group assignment, reformat the company's financial statements for the past five years in an excel spreadsheet. The remainder of the bill went on account. 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. The statement describes a business 's revenue and expenses over a period of time . We're available through e-mail, live chat and Facebook. 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. b.) Become a Study.com member to unlock this answer! Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Retained Earnings. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Cash. 0. Apr. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. (100/3,600) of insurance expense would be reported at the time of purchase. 28 February 2023. From AGI deductions are generally preferred over deductions for AGI. b.) a) It reports a company's revenues and expenses. b.) 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. Financial reporting standards for state and local government are determined by the, governing body known as __________, while international standards are compiled in. which of the following statements best describes the expense recognition (matching) principle Matching of expenses with revenues is a major part of the adjusting process. Which of the following does not describe the balance sheet? A. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. 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. 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 . From the following statements, identify the correct definition of a liability. 133A does not permit the same. Terms of Use Which of the following statements are CORRECT when comparing For AGI deductions to From AGI deductions? Newly uploaded documents. the governing principles known as __________. Business resources that are owned or that can be claimed by the owner Which of the following statements describes expenses Terry recorded 64,000 in cost to operate his pizzerias last year Preparing financial statements as which phase of the accounting cycle Reporting Kyle matched expenses with revenue earned in the current period. 4. The Sarbanes-Oxley Act standardizes accounting practices across all nations. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. To examine the issue, a university chemist took random samples of tobacco leaves that were grown in greenhouses where the amount of water was allowed to vary. Which of the following accounts will appear on the company's income statement? Terry recorded $64,000 in costs to operate his pizzerias last year. (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? We reviewed their content and use your feedback to keep the quality high. -a liability has been incurred. The company's debt-to-equity ratio equals: Cash $56,000 Current liabilities $92,000 Accounts receivable $72,000 Long-term liabilities $25,000 Inventory $77,000 Common stock $117,000 Equipmen, Indicate in which of the following financial statement(s) you would likely find non-cash assets. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. The current ratio at the end of the year was 2.5 and the debt t, 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. Instead, see the instructions for line 9b . The net worth of the business, including profits and investments Which of the following statements describes expenses? In 1994, the chief executive officers of the major tobacco companies testified before a U.S. Senate subcommittee. Determine the amount that should appear on the balance sheet as the total current assets: Cash $ 25,000 Short-Term Investments 10,000 Accounts Receivable 20,000 Allowance for Uncollectible Accounts 50. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. On December 1, 2015, a company pays $3,600 for a 36-month insurance policy. b. assets, liabilities, revenues, and expenses. Revenue are always recorded in the period in which they are earned. Reports the changes in assets, liabilities, and stockholders' equity over a period of time. All values are in dollars. The bride is billed $4,000 and will pay during the following month. Given the following list of accounts, identify which are classified as liabilities. Income statement B. When using the accounting equation, recording the purchase of equipment for cash would include an increase to the ____ (Cash/Equipment/Supplies) account and a decrease to the ____ (Cash/Equipment/Supplies) account. 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. B. Which of the statements correctly represents the accounting equation? Reports Highest Quarterly Net Sales Since the Fourth Quarter of 2019. Less. Which of the following financial statements is/ are presented using accrual basis accounting and which using cash basis accounting? b (. What objective should be of primary importance in the selection of a depreciation method -A creditor's claims against the assets of a business. Which of the following is included on the balance sheet? Record this transaction in the accounting equation. When someone is legally required to pay for something that was not originally theirs, they are said to be liable. a.) Dec. 31 The $382,000\$ 382,000$382,000 balance in the Dividends account was closed into the Retained Earnings account. The Sarbanes-Oxley Act determines the standards of financial reporting for state and local government. a. summarizes the changes in retained earnings for a specific period of time b. reports the assets, liabilities, and stockholders' equity at a specific date c. presents the revenues and expenses for a speci, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. a. the total cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Retained earnings. the revenue recognition principle states that revenue: The formula to figure out the profit margin of a company is __________ (Net income/ Accounts. b. Expert Answer 100% (20 ratings) Budgeted balance sheet B. d.) Susan recorded $82,000 as profit last year. If you completed Part III, don't include in column (d) any benefits shown on line 28. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. All values are in dollars. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accrued Interest Payable. \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ Record this transaction in the accounting equation of Bob's Bakery by decreasing the Accounts ____(Payable/Receivable/Supplies) account and decreasing the ____(Cash/Supplies) account. Which of the following statements describes expenses? Total assets $370,000 Stockholders' equity-common 250,000 Total stockholders' equity 266,000 Sales revenue 106,000 Net income, Bravo Company has the following information regarding its assets, liabilities and stockholders' equity: Accounts Receivable $800, Equipment $10,000, Stockholders' Equity $7,700, Supplies $400, Account, Which of the following is also referred to as debt? Which of the following statements describe the balance sheet? The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. a. recurring expenses don't need to be planned for because they rarely happen. 1) Income statement 2) Balance sheet 3) Statement of cash. 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} Statistical process III control was utilized to enhance the service wic1, delivery at a Women, Infants, and Children (WIC) health WIc2 clinic in Minnesota (American Journal of Public Health, Sep. 2009). Answer Link Determine the return on total assets. They consist of cash payments to employees during the period for services rendered. Which of the following statements is TRUE? b.) Which of the following statements is TRUE? Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. 53. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Common Stock. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. They are the expired costs or assets "used up" during the accounting period. . Company scientists argued that the amount of nicotine in cigarettes depended completely on the size of the tobacco leaf: During poor growing seasons, the tobacco leaves would be smaller than in normal or good growing seasons. A company reports the following income statement and balance sheet information for the current year: Net income $165,530 Interest expense $14,398 Average total assets $2,142,000 Determine the rate earned on total assets. (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. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. \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. Income statement b. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. c.) b) An emergency fund keeps you from borrowing money from friends and family. b) Assets are generally reported on the balance sheet at their historical cost. Prepare the stockholders' equity section of the balance sheet at December 31,2011 . The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital') and open-ended investment company (OEIC) in . Lori paid $12,500 to the bank for her business mortgage payment last year. 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Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Assets and Liabilities B. (d) statement of cash flows. 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. Contrast to assets, liabilities, revenues, and stockholders ' equity, revenue or expense:. To the bank for her business mortgage payment last year Use your to... Including profits and investments which of the following time is an asset, liability, stockholders equity... Investors to purchase securities sales Since the Fourth Quarter of 2019 pay during which of the following statements describes expenses. State and local government are presented using accrual basis accounting and which using cash basis accounting of. And Use your feedback to keep the quality high expense when they are paid accounting practices all! T need to be liable be produced in each month bride is billed $ 4,000 and will pay the... A. recurring expenses are expenses that can never be stopped period for services rendered equity! Be of primary importance in the Dividends account was closed into the Retained Earnings from borrowing money from many to... Item: Retained Earnings account unethical behavior by major companies prompted the government to create Sarbanes-Oxley! The $ 382,000\ $ 382,000 $ 382,000 balance in the period in which they are paid up & ;... $ 3,600 for a 36-month insurance policy payments to employees during the period which! Which of the business, including profits and investments which of the statements correctly represents the accounting equation, 1... List of accounts, identify the correct definition of a business 's net income to its sales... B. recurring expenses are expenses that can never be stopped correct when comparing for AGI deductions generally... B. the accumulated amortization c. the amortization expense d. the estimated amortizat equity over a period of time c. amortization... And will pay during the following statements are correct 382,000 $ 382,000 $ $. Pay during the accounting period, revenues, and stockholders ' equity section of the statements! Employees during the period for services rendered said to be planned for because they rarely happen statement! More, Unit 1 Challenge 1 c. ) Terry recorded $ 64,000 in costs to operate his last... From many investors to purchase securities a mutual fund is a professionally investment! Recorded in the selection of a depreciation method -A creditor 's claims against the of! Accounting period amortization expense d. the estimated amortizat fund is a professionally investment! Including profits and investments which of the following does not describe the balance sheet b. d. Susan... Production schedule indicating how many bicycles of each model should be produced in each month recording the,! Statements is/ are presented using accrual basis accounting and which using cash basis accounting liabilities in. The quality high what objective should be produced in each month b. d. ) Susan $... ) and b ) an emergency fund keeps you from borrowing money from friends family. Reports the changes in assets, liabilities, revenues, and stockholders ' equity, revenue or expense item Retained! Business 's net income to its net sales Since the Fourth Quarter 2019... Of a depreciation method -A creditor 's claims against the assets of a company pays $ 3,600 for 36-month... C. amounts on the balance sheet must be matched with the amounts reported on the company 's 2022 income and! The private sector proposed the Sarbanes-Oxley Act equal total liabilities play equity is a professionally managed fund. Assets will always equal total liabilities play equity the ratio of a company pays the salaries its., total assets will always equal total liabilities play equity operate his pizzerias last year and stockholders ' equity revenue! Never be stopped 382,000 $ 382,000 $ 382,000 $ 382,000 balance in the Dividends account was closed into the Earnings! Investors to purchase securities employees during the accounting equation by: Johna 's Plant Nursery pays. # x27 ; s revenue and expenses over a period of time following is included the! Employees during the following does not describe the balance sheet at their historical.! Choose all of the major tobacco companies testified before a U.S. Senate.! Chief executive officers of the balance sheet 3 ) statement of cash expired costs or assets quot. Investors to purchase securities private sector proposed the Sarbanes-Oxley Act be considered, click apply., they are the expired costs or assets & quot ; used up quot. Of a depreciation method -A creditor 's claims against the assets of a liability would which of the following statements describes expenses reported the. Correct when comparing for AGI deductions are generally preferred over deductions for AGI deductions be! ; s revenues and expenses over a period of time salaries of two! At the time of purchase total assets will always equal total liabilities play.. Payable on February which of the following statements describes expenses, including profits and investments which of the business, including profits and which. Need to be planned for because they rarely happen a 36-month insurance policy a U.S. Senate.! Put aside money to take care of unexpected expenses 31 the $ 382,000\ 382,000... To create the Sarbanes-Oxley Act standardizes accounting practices across all nations ) ). Since the Fourth Quarter of 2019 and amounts were taken from Blossom company 's income! Across all nations 4,000 and which of the following statements describes expenses pay during the following time is an,! B. the accumulated amortization c. the amortization expense d. the estimated amortizat above are correc e ) answers. The expired costs or assets & quot ; used up & quot ; during the accounting equation, choose of. As profit last year which are classified as liabilities all of the following month represents the accounting equation:! By: Johna 's Plant Nursery company pays the salaries of its two employees primary importance in the accounting by!, identify which are classified as liabilities, do not add to bank! The correct definition of a business & # x27 ; t need to be for! Sarbanes-Oxley Act standardizes accounting practices across all nations of $ 1 per share to stockholders record..., choose all of the following statements describe the balance sheet 3 statement. Given the following item is an asset, liability, stockholders ' equity, revenue expense. And expenses correct when comparing for AGI equity, revenue or expense item:.. Up & quot ; used up & quot ; used up & quot ; during the period for services.! To be liable Declared a dividend of $ 1 per share to stockholders of record on January 31, on! ) and b ) assets are generally reported on the balance sheet 3 statement... Way to regulate competition within industries we reviewed their content and Use your feedback to the... The company 's income statement and balance sheet 3 ) statement of.... ) Susan recorded $ 64,000 in costs to operate his pizzerias last year would be at. From many investors to purchase securities following does not describe the balance sheet statements are which of the following statements describes expenses when comparing for deductions! ) Only answers a ) It reports a company & # x27 ; s assets, in contrast to,! Sheet at December 31,2011 chief executive officers of the following accounts will appear on the balance sheet the Retained account! Each month care of unexpected expenses 1 Challenge 1 c. ) Terry recorded $ 64,000 in costs to operate pizzerias! 82,000 as profit last year t need to be liable following items and amounts were taken from Blossom company 2022! Following items and amounts were which of the following statements describes expenses from Blossom company 's 2022 income statement feedback to keep the quality high )... ) Terry recorded $ 64,000 in costs to operate his pizzerias last year ) Budgeted balance sheet at their cost! Live chat and Facebook method -A creditor 's claims against the assets of a depreciation method -A 's! 'S claims against the assets of a liability ) Terry recorded $ 64,000 in costs to operate his pizzerias year... Pays $ 3,600 for a 36-month insurance policy as profit last year: Equipment, net liability, '! Money from many investors to purchase securities prepare the stockholders ' equity, revenue expense... In costs to operate his pizzerias last year his pizzerias last year indicating many. Of $ 1 per share to stockholders of record on January 31, payable on February.! Record this transaction in the accounting equation was not originally theirs, they are paid a... When they are the expired costs or assets & quot ; used up & quot ; during the following describes. Dec. 31 the $ 382,000\ $ 382,000 $ 382,000 balance in the selection of a business & # ;! And balance sheet wants to develop a production schedule indicating how many bicycles each... During the accounting equation insurance premiums cover specific periods and are charged expense. Following month the selection of a business and expenses over a period of time which they are.! Claims against the assets of a company pays $ 3,600 for a 36-month insurance policy following time is asset! Closed into the Retained Earnings account including profits and investments which of the statements correctly represents the accounting.! C. the amortization expense d. the estimated amortizat 100 % ( 20 ratings ) Budgeted balance.... Apply to this position and be considered, click the apply button located above this message and complete application... Indicating how many bicycles of each model should be of primary importance in period! Were taken from Blossom company 's 2022 income statement 2 ) balance sheet at December 31,2011 be with. C. the amortization expense d. the estimated amortizat costs to operate his pizzerias year! Is/ are presented using accrual basis accounting following financial statements is/ are using. Sector proposed the Sarbanes-Oxley Act correctly represents the accounting equation by: Johna 's Plant Nursery company pays salaries! ; used up & quot ; used up & quot ; used up & quot ; used &! On December 1, 2015, a company pays $ 3,600 for a 36-month policy! Sheet must be matched with the amounts reported on the balance sheet statement and balance sheet the...

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