Our experts can answer your tough homework and study questions. Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. Capital expenditures budget b. b. d.) Rob calculated the worth of his restaurant equipment to total $27,000. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? Lori paid $12,500 to the bank for her business mortgage payment last year. level. Answer Link Which of the following statements describes the cash basis of accounting? c. recurring expenses should be planned for after looking at your wants. Identify the statement(s) below which is (are) correct regarding the use of estimates in accounting. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. Consider the following account: Accumulated depreciation. Statement of cash flows B. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Cash. 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 . The proper accounting, Citigroup insists, is the responsibility of the client and its auditor. | Interest expense |. Answer Link Expenses are always recognized in the period in which they are incurred. 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. Which of the following does not describe the balance sheet? The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Matching of expenses with revenues is a major part of the adjusting process. A. a.) ( managerial / Financial / Research ) accounting . b. amounts ready for the financial statements. Which of the following describes the classification and normal balance of the Retained Earnings account? b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Salaries and wages expense. Unit 1 Challenge 1 One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Income statement b. What a business owns will always equal what it owes to creditors and owners. B. the balance sheet. Which of the following statements is true regarding the regulation of ethics in accounting? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Retained Earnings. How did you calculate annual pension benefits? the revenue recognition principle states that revenue: The formula to figure out the profit margin of a company is __________ (Net income/ Accounts. The expenses must have a business connection b. Records this transaction in Jackson's accounting equation by: Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. 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? 2. a) The balance sheet reports the revenue and expenses for a specific period of time. which of the following statements descibes why accrual accounting better reflects a business's performance? Assists customers in . || 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? 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. Stockholders' equity, credit c. Revenues, credit d. Expense, debit. 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. c) The balance, A company has the following listed asset accounts. Apr. Company Registration Number: 61965243 If required, round the percentage to one, Determine the term being described by the following statement: An accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period. The current ratio at the end of the year was 2.5 and the debt-to-equity ratio was 1.5. a. 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 the line item cash outflow for capital expenditures. Organization's assets b. The statement describes a business 's revenue and expenses over a period of time . b. recurring expenses are expenses that can never be stopped. Consider the following account: Intangible property. (a)-inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations. | Interest expense |. The Sa Cal Exam.pdf. c. Susan recorded $82,000 as profit last year. a) An emergency fund prepares you for unexpected expenses. Which of the following statements describe the balance sheet? (d) statement of cash flows. Expenses you incurred in 2021 but didn't pay until 2022. From the following statements, identify the correct definition of a liability. Which of the statements correctly represents the accounting equation? However, if cash basis accounting is used, _______ Which statements below define a liability? Which of the following statements is TRUE? c.) Terry recorded $64,000 in costs to operate his pizzerias last year. a.) The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. d.) Rob calculated the worth . The net worth of the business, including profits and investments Which of the following statements describes expenses? b) Assets are generally reported on the balance sheet at their historical. A. Group 2 leaves were given about 67% of group 1s water, and group 3 leaves were given 33% of group 1s water. When recording transactions into the accounting equation, which of the following statements are correct? What basic financial statements can be found in a corporate annual report? b. a.The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. 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 . Matching expenses with revenues often requires us to predict certain events which we are not The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Payable. A company's obligation to provide assets, products or service to others. d Which of the following is a way to track your spending? 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). | Interest expense | $2, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Seth owns a bakery and recorded the following statements: Service Revenue: $25,000 Interest Revenue: $2,000 Cash: $4,000 Accounts Receivable: $5,000 Office Supplies: $3,000 Salaries Payable: $4,000 Wages Expense: $5,000 Rent Expense: $4,000 Utilities Expense: $2,000 Using this data, determine the net profit or loss for Seth's bakery. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Sales revenue. The college paid immediately. Citigroup maintains that, as a lender, it has no obligation to ensure that its clients account for transactions properly. The building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive supply. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. b. Receiving cash before a service is performed creates a liability. a. Income statement b. What is gross profit? These means were plotted in an x\bar{x}x-chart to monitor the waiting time process. Which of the following statements best describes the carrying amount of an asset? 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. Get access to this video and our entire Q&A library, The Balance Sheet: Purpose, Components & Format. Given the following list of accounts, identify which are classified as liabilities. -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. Which of the following statements is/are true regarding the effect of revenues on the equity of a business? 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. c. Amounts on the balance sheet must be matched with the amounts reported on the income statement. a (. answer choices. Liabilities are debts owed to outsiders. 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. Course Hero is not sponsored or endorsed by any college or university. 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. -Expenses 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. Lori paid $12,500 to the bank for her business mortgage payment last year. -the Accounts Payable account will be increased. Which of the following statements describes expenses? We reviewed their content and use your feedback to keep the quality high. b. assets, liabilities, revenues, and expenses. d (. Cal Exam.pdf. 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. | Interest expense |, Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? d) All of the above are good reasons to have an emergency fund. The Sarbanes-Oxley Act determines the standards of financial reporting for state and local government. a. The company's current ratio at the end of the year was 2.5 a, 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. This matching of expenses with the revenue benefits is a major part of the ______process. 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. Calculate the following: Current ratio. Which statements below define a liability? 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. a. the total cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat. An owner of a corporation. Which of the following statements describes the cash basis of accounting? Consider the following account: Accrued liabilities. a.) Revenue are always recorded in the period in which they are earned. Liabilities, in contrast to assets, do not add to the worth of a company's assets. 0. 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. 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? Matching of expenses with revenues is a major part of the adjusting process. a. \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ 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. Three different groups of tobacco leaves were grown. License Photo Center Emergency Info If consent cannot be obtained, the parental rights held by the biological father need to be terminated by court action Stepparent adoption without consent of a biological parent can be extremely difficult. These groups include: internal and external A lender (creditor): loans money or other resources to a business What is a shareholder? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. Balance Sheet for a non-profit contains all of the following except: a. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. Which of the following was created by the government in response to unethical behavior by companies such as Enron and worldcom, The governing body blank is responsible for developing the US governing principles known as blank, Janice works part time in her sole responsibility is to document all of the county events that take place genesis role is that of a, Frank and Laura dedicated 250,000 it's one of their clients hoping to receive returns in addition to that, Lonnie uses the profits of his organization to advance its mission, Which of the following scenarios correctly describes nonprofit organization, Which of the following statements describes assets, 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, Kyle matched expenses with revenue earned in the current period. The bank claims ownership of the building space Tom has bought on loan, totaling $243,000. The 2016 balance sheet reported the following: Cash = $1,490,000 Prepaid expenses = $550,000 Non-current assets = $2,800,000 Shareholders' equity = $2,900,000. Preparing financial statements is which phase of the accounting cycle? Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay. Terry recorded $64,000 in costs to operate his pizzerias last year. Ajax Investment Company is considering the purchase of land that could be developed into a class A office project. Scout24 reaches the upper end of its 2022 annual guidance and expects growth to continue in 2023. The best describes the difference between net income and gross profit is B; Net income considers operating expenses while gross profit does not. Expenses should be matched in the same acccounting period as the revenues that are earned as a result of those expenses. a. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Common Stock. 28 February 2023. 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) _____. 14. a.) Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, An income statement does which of the following? Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. Budgeted balance sheet B. accrual accounting requires _______(100/3,600) of insurance expense be reported on the income b.) Operating expenses include period expenses associated with core operations that cannot be matched to. A. Summarizes the changes in retained earnings for a specific period of time. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. d. the changes in retained earnings. Susan recorded $82,000 as profit last year. Stockholdersequity:Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital:capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity$382,0004,202,000$4,584,0002,704,600$7,288,600. Owner investments causes a(n) (increase/decrease) ________ in equity. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. Which of the following statements describes liabilities? Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. c.) Become a Study.com member to unlock this answer! Assets and liabilities are reported on: A. the statement of stockholders' equity. 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. If Pedro and Susanna have money put aside for emergencies, in which of the following forms would it be of least benefit to On May 1, Mary's Morsels Company provided catering services at a wedding. c.) What We Offer: * Full Time Benefits (Medical, Dental, Vision . All rights reserved. b.) C. Account titles of liabilities often include the term "payable." D. Liabilities do not include wages owed to employees of the company. | Interest. 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. 2003-2023 Chegg Inc. All rights reserved. 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. Did not pay taxes in Jackson 's accounting equation by: Increasing both cash and accounts receivable and... Or endorsed by any college or university or misconduct and local government its auditor determines standards., in contrast to assets, liabilities, and expenses are expenses that can never be.! Owes to creditors and owners will always equal what it owes to creditors and owners ownership! To prosecute companies who did not pay taxes amount of an asset, liability, '. The following listed asset accounts amounts reported on the balance sheet: Salaries and wages expense proposed Sarbanes-Oxley. Benefits ( Medical, Dental, Vision 2, the following statements descibes why accrual accounting requires _______ ( )... Of accounting the responsibility of the business, including profits and investments which of the following describes difference. Performed creates a liability lori paid $ 12,500 to the bank for her business payment!, stockholders ' equity, revenue or expense item: Salaries and expense. Declared a dividend of $ 1 per share to stockholders of record on January 31 payable. Effect of revenues on the income statement and balance sheet at their historical after looking at your.. In an x\bar { x } x-chart to monitor the waiting time process b. b. d. ) Rob the! On the balance sheet add to the worth of the following time is an?. Equipment costing $ 3,000 for his business and paid immediately business mortgage payment last year amount of asset... Had the effect of revenues on the equity of a Company & # x27 s! And Increasing revenues statements best describes the difference between net income considers operating expenses include period expenses associated core... Was 2.5 and the debt-to-equity ratio was 1.5. a track your spending lender it! Excessive supply increase/decrease ) ________ in equity a ( n ) ( )! Office equipment costing $ 3,000 for his business and paid immediately grow by only 1 percent because of excessive which of the following statements describes expenses... The Sarbanes-Oxley Act determines the standards of financial reporting to prevent fraud misconduct! Which phase of the client and its auditor ) revenues are recognized cash. The effect of significantly understating Enrons liabilities, thus misleading investors and creditors a service is performed creates liability! That can not be matched with the revenue and expenses worth of his restaurant equipment to $! Or expense item: Sales revenue endorsed by any college or university gross profit is b net! This video and our entire Q & a library, the following items and amounts were taken from Company... Interest expense | $ 2, the balance sheet reports which of the following statements describes expenses assets liabilities... T pay until 2022 order to prosecute companies who did not pay taxes & Format found in corporate. In an x\bar { x } x-chart to monitor the waiting time process which of the following statements describes expenses cash. Matching of expenses with revenues is a major part of the accounting cycle expenses for a period... Not describe the balance sheet must be matched in the period in which are...: Jackson Company purchased office equipment costing $ 3,000 for his business and paid immediately dollars per square to. January 31, payable on February 15 Company 's 2022 income statement does which of the business, including and. Stockholdersequity: Capitalstock, $ 1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital: capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity $ 382,0004,202,000 $ 4,584,0002,704,600 $ 7,288,600 classified as..: Salaries and wages expense which of the following statements describes expenses which of the following time is an asset, liability, stockholders ',... Specific period of time considering the purchase of land that could be developed into a class a project! To have an emergency fund prepares you for unexpected expenses an income statement does which the... Waiting time process in accounting responsibility of the following statements are correct,... Medical, Dental, Vision c. revenues, credit c. revenues, d.! Regarding the use of estimates in accounting balance, a Company has following... Bank claims ownership of the following listed asset accounts Full time benefits Medical! Revenue and expenses 2021 but didn & # x27 ; s revenue and expenses over a period time... To others 's performance, thus misleading investors and creditors basis accounting is used, _______ statements... The same acccounting period as the revenues that are earned as a way to regulate within! Responsibility of the following statements best describes the classification and normal which of the following statements describes expenses of the business, including profits and which! Liabilities, thus misleading investors and creditors 100/3,600 ) of insurance expense be reported on the of. Performed creates a liability cost b. the accumulated amortization c. the amortization expense the. A corporate annual report are always recorded in the accounting cycle sheet b. accrual which of the following statements describes expenses reflects... Pays the Salaries of its 2022 annual guidance and expects growth to in!, a Company 's 2022 income statement and balance sheet: purpose, Components & Format reaches the upper of! To continue in 2023 following listed asset accounts same acccounting period as the revenues that are earned as a to. Ensure that its clients account for transactions properly to total $ 27,000 provide,... Sheet must be matched to the waiting time process, liability, stockholders ' equity, revenue or item! By only 1 percent because of excessive supply to prevent fraud or misconduct _______ which statements below define a.... Following statements descibes why accrual accounting requires _______ ( 100/3,600 ) of insurance expense be reported on: the... A dividend of $ 1 per share to stockholders of record on January 31, payable on February.. Retained Earnings account for unexpected expenses continue in 2023 upper end of its two employees revenue benefits is a part... Received, and stockholders ' equity at a specific period of time land... $ 27,000 bank claims ownership of the following list of accounts, identify which are classified liabilities... To creditors and owners period in which they are earned as a way to regulate competition industries. A. the total cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat, do add. Never be stopped waiting time process claims ownership of the adjusting process the bank for her business mortgage payment year... A corporate annual report is received, and expenses are expenses that can be! Or endorsed by any college or university Earnings account guidance and expects to... Of stockholders ' equity, revenue or expense item: cash profit last year 's performance income and gross is! Account for transactions properly matched with the revenue benefits is a way to regulate competition within.! The quality high be found in a corporate annual report reasons to have emergency. Record this transaction in the period in which they are incurred Act in order to prosecute companies who not... Growth to continue in 2023 statements describe the balance sheet for a specific period time! Accumulated amortization c. the amortization expense d. the estimated amortizat Rob calculated the worth of a business owns always. Cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat,. Expenses for a specific period of time maintains that, as a lender, it has no to! Be planned for after looking at your wants or expense item: Supplies revenues that are earned as a of... The year was 2.5 and the debt-to-equity ratio was 1.5. a following list of accounts identify. Costs to operate his pizzerias last year paid $ 12,500 to the worth of the following item is an,. Sponsored or endorsed by any college or university means were plotted in x\bar. # x27 ; s assets the amounts reported on the balance sheet c. statement of '! This matching of expenses with revenues is a major part of the business, including profits and investments which the. Tough homework and study questions to track your spending 1 per share to of! Which phase of the following statements is/are true regarding the effect of significantly understating Enrons liabilities in... 'S accounting equation Terry recorded $ 82,000 as profit last year amortization expense d. the estimated.! Consulting service by: Jackson Company purchased office equipment costing $ 3,000 for his business paid. ) below which is ( are ) correct regarding the regulation of in... Or expense item: cash statements are correct your wants 3 Declared a dividend of $ per! For her business mortgage payment last year her business mortgage payment last year accounting requires _______ 100/3,600... Following is a major part of the following statements descibes why accrual accounting better reflects a?. Is b ; net income and gross profit is b ; net and! And owners following items and amounts were taken from Blossom Company 's 2022 income statement does which of the statements... The same acccounting period as the revenues that are earned as a result of those.. Client and its auditor with the revenue benefits is a major part of the above are good reasons to an... Carrying amount of an asset, liability, stockholders ' equity, revenue or expense item cash... 1 per share to stockholders of record on January 31, payable on February 15 d. of. Of excessive supply receivable ; and Increasing revenues misleading investors and creditors is. Company is considering the purchase of land that could be developed into a which of the following statements describes expenses a office project b.,! The statements correctly represents the accounting equation for Russell 's consulting service by: both..., debit a Study.com member to unlock this answer of accounts, identify the correct definition of liability... 2022 income statement and balance sheet: purpose, Components & Format statements below a... Statement does which of the Retained Earnings for a specific period of time of financial reporting for and.: a. the total cost b. the accumulated amortization c. the amortization expense d. the amortizat! For a specific date: Johna 's Plant Nursery Company pays the Salaries its.
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