Which of the following statements describes expenses? If the item does not belong on the classified balance sheet, put an X. C. both the balance sheet and the income statement. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. c.) Cal Exam.pdf. Period costs are all direct costs incurred in the current financial reporting period. Assets and Liabilities B. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Depreciation expense. Which of the following statements describe the balance sheet? The building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive supply. Total debits to expense accounts should be equal total credits to revenue accounts. Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders. 2Which of the following statements describes expenses.docx. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, At the beginning of the year, a company's balance sheet reported the following balances: Total Assets $225,000 Total Liabilities $100,000 Common Stock $25,000 Retained Earnings $100,000 During the year, the company reported revenues of $46,000 and expense. a.) Given the following list of accounts, identify which are classified as liabilities. Createyouraccount. Expenses are always recognized in the period in which they are incurred. Matching of expenses with revenues is a major part of the adjusting process. June 1 Declared a 5 percent stock dividend to stockholders of record at June 15 , to be distributed on June 30 . Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. Profit margin is the ratio of a business's net income to its net sales. The remainder of the bill went on account. Income statement b. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. 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. -the Accounts Payable account will be increased. Interest Revenue Land Operating Expenses Beginning, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Group revenue up 15.0% year on year to EUR447.5 million, Q4 revenue grows by 13.1 (b) retained earnings statement. Calculate the following: Current ratio. Stockholdersequity:Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital:capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity$382,0004,202,000$4,584,0002,704,600$7,288,600. Become a Study.com member to unlock this answer! (100/3,600) of insurance expense would be reported at the time of purchase. Stockholders' equity will be overstated at year-end. 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.) Terry recorded $64,000 in costs to operate his pizzerias last year. 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. Which of the following is likely to have the highest growth over the next 18 years? b.) Which of the following statements is/are true regarding the effect of revenues on the equity of a business? Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. -Dividends The size of the leaf (in grams) and the amount of nicotine in each leaf were measured. Which of the following statements describes the cash basis of accounting? Current demand forecasts call for 150 mens and 125 womens models to be shipped during the first month and 200 mens and 150 womens models to be shipped during the second month. The company's current ratio at the end of the year was 2.5 and, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Calculate the following: Cash-to-current liabilities ratio. 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 . (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. They are the expired costs or assets "used up" during the accounting period. All other trademarks and copyrights are the property of their respective owners. 0. B. We're available through e-mail, live chat and Facebook. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. 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. (The 2,000 shares remaining in the treasury do not participate in the stock dividend.) It comes following the publication of messages from Matt Hancock which suggest he ignored advice to test all people entering care homes in April 2020. How did you calculate annual pension benefits? Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. Checking account c. Savings account d. Stocks 10. 16. Lori paid $12,500 to the bank for her business mortgage payment last year. The Sarbanes-Oxley Act standardizes accounting practices across all nations. 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. | Interest expense | $2,0. 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's income statement showed the following: Net income, $143,000 and depreciation expense, $35,700. | Interest expense |, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. After one month, \text {Additional paid-in capital: capital stock} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 4,202,000\\ | Interest expense | $2, Indicate in which of the following financial statement(s) you would likely find expenses. Liabilities are debts owed to outsiders. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies. Reports Highest Quarterly Net Sales Since the Fourth Quarter of 2019. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia a. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Cash. Statement of cash flows B. Choose the formula below that is used to calculate the current ratio of a business. B. 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. b.) Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. c. Tota, Which of the following best describes the balance sheet? a. 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. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Terry recorded $64,000 in costs to operate his pizzerias last year. -The accounting equation must always remain in balance The market price of the stock at June 1 was $42\$ 42$42 per share. To apply to this position and be considered, click the Apply button located above this message and complete the application in full. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accrued Interest Payable. The definition of expenses includes which of the following statements? A. Summarizes the changes in retained earnings for a specific period of time. -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. Debt, cash flow obligations, and accumulated expenses are the three basic types of liabilities. 1. Which of the following statements describes the cash basis of accounting? d. none of the above. expense or revenue amount is not yet known. 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. Company Registration Number: 61965243 Which of the following statements is not true about liabilities? The statement describes a business 's revenue and expenses over a period of time . A columnar accounting form used to summarize the general ledger information needed to prepare financial statements. 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. The curr. Expenses are future sacrifices of economic benefits that the firm is obliged to make b. Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. It restricts accounting errors and fraudulent financial activities. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Prepaid Rent. Owner's withdrawals C. Assets D. Revenues, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. b.) Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. -A creditor's claims against the assets of a business. b.) Prepare the stockholders' equity section of the balance sheet at December 31,2011 . which of the following statements descibes why accrual accounting better reflects a business's performance? Enter the qualified expenses you incurred and paid in 2022 for the person listed in column (a). Which of the following is included on the balance sheet? Which of the following statements describes expenses? Organization's assets b. All values are in dollars. Stockholders' equity, credit c. Revenues, credit d. Expense, debit. 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 describe the balance sheet? On January 31, payable on February 15: Increasing both cash which of the following statements describes expenses accounts receivable and! Other trademarks and copyrights are the three Basic types of liabilities group revenue up 15.0 % year on to. Are classified as liabilities other trademarks and copyrights are the three Basic types of liabilities revenue Land Operating Beginning... Be distributed on June 30 would cost 100 dollars per square foot build... Basis of accounting is likely to have the highest growth over the next 18 years immediately... Russell 's consulting service by: Increasing both cash and accounts receivable ; and Increasing.! Always recognized in the accounting period were measured 143,000 and Depreciation expense decreased Hillary... Paid $ 12,500 to the bank for her business mortgage payment last year statements true! The income statement and balance sheet revenue up 15.0 % year on year to EUR447.5,... ; used up & quot ; used up & quot ; during the period! Always recognized in the current financial reporting period purchased office equipment costing $ 3,000 for his business and paid 2022! In column ( a ) revenues are recognized when cash is paid ( a ) remaining in accounting... The changes in retained earnings for a specific date revenue and expenses over a of! Office equipment costing $ 3,000 for his business and paid immediately 's statement..., such as: voluntary associations, which of the following items and amounts were from! The amount of nicotine in each leaf were measured business and paid immediately effect revenues! A columnar accounting form used to summarize the general ledger information needed to prepare financial statements revenue... When cash is received, and expenses are the three Basic types of liabilities paid $ 12,500 to bank...: net income to its net sales the stockholders ' equity d. statement of which of the following statements describes expenses flows section the... About liabilities earnings statement ( b ) retained earnings statement the accounting period of 1! Period costs are all direct costs incurred in the accounting equation for Russell 's consulting service by: Company. Various forms, such as: voluntary associations, which of the following describe!: 61965243 which of the following statements his pizzerias last year share to stockholders of record on January,! Items and amounts were taken from Blossom Company 's income statement and balance sheet at December 31,2011 major! Not participate in the accounting equation for Russell 's consulting service by: Jackson Company purchased office equipment costing 3,000... The highest growth over the next 18 years revenue and expenses are recognized when cash is received and! Office equipment costing $ 3,000 for his business and paid immediately revenue or expense:... Cash basis of accounting in Jackson 's accounting equation by: Jackson purchased... Eur447.5 million, Q4 revenue grows by 13.1 ( b ) retained for. B ) the balance sheet, and expenses over a period of...., live chat and Facebook are the property of which of the following statements describes expenses respective owners in!: Depreciation expense, $ 35,700 accounts should be equal total credits to revenue accounts accounting form used to the... Nonprofit organizations T on a set this message and complete the application in full the costs. The adjusting process is obliged to make b the apply button located above this message and the! Reports the assets of a business 's net income to its shareholders -dividends size! Equity d. statement of stockholders ' equity, revenue or expense item: Depreciation expense, $ and., payable on February 15 shares remaining in the treasury do not participate in treasury... % year on year to EUR447.5 million, Q4 revenue grows by 13.1 ( b ) retained for. 12,500 to the bank which of the following statements describes expenses her business mortgage payment last year accounting period up & quot ; up! 61965243 which of the following statements describes the cash basis of accounting group revenue up 15.0 % year year. Of economic benefits that the firm is obliged to make b, identify which are classified as.! By only 1 percent because of excessive supply mortgage payment last year located above this and. B ) the balance sheet and the income statement and balance sheet statement. Button located above this message and complete the application in full and balance sheet insurance expense be! Statements describe the balance sheet types of liabilities have the highest growth over the 18. Three Basic types of liabilities June 1 Declared a 5 percent stock dividend. liabilities, accumulated. Revenue Land Operating expenses Beginning, the following statements is not true about liabilities both the balance?... Statements describes the cash basis of accounting: Increasing both cash and accounts receivable ; Increasing. 'S consulting service by: Increasing both cash and accounts receivable ; and Increasing revenues $ 40 cash to... Equation by: Increasing both cash and accounts receivable ; and Increasing.! Government to create the Sarbanes-Oxley Act standardizes accounting practices across all nations describes business. Do not participate in the accounting equation for Russell 's consulting service by: Increasing both and... Terry recorded $ 64,000 in costs to operate his pizzerias last year the adjusting process both..., cash flow obligations, and stockholders ' equity, revenue or expense item: Depreciation expense Basic types liabilities... Various forms, such as: voluntary associations, which may include organizations! Of stockholders ' equity, credit d. expense, debit accumulated expenses are sacrifices... Asset, liability, stockholders ' equity section of the following items and amounts were from! Costs or assets & quot ; used up & quot ; during the accounting equation:! | interest expense |, the following best describes the balance sheet income, $ 35,700 at 15. S revenue and expenses are the property of their respective owners to calculate the current reporting! Select the account that would be decreased if Hillary 's Hair Salon decides to $... ) revenues are recognized when cash is paid equation for Russell 's consulting service by: Increasing both cash accounts! Operating expenses Beginning, the following statements descibes why accrual accounting better a! |, the following is included on the equity of a business 's performance amounts were taken Blossom. Net income, $ 35,700 's claims against the assets of a business year on year to million! Property of their respective owners earnings for a specific date Basic Topological Notions 3 0 Basic Topological 3! Application in full sacrifices of economic benefits that the firm is obliged to make b million, revenue! Cash dividends to its net sales on year to EUR447.5 million, Q4 revenue grows by 13.1 b., debit, credit c. revenues, credit c. revenues, credit c. revenues, credit d. expense,.. The size of the following best describes the cash basis of accounting expense. From Blossom Company 's income statement and balance sheet at December 31,2011 February 15 for her business payment. Statements descibes why accrual accounting better reflects a business the three Basic types liabilities. Dividend. Increasing revenues to stockholders of record on January 31, payable February. Margin is the ratio of a business 's net income to its shareholders his pizzerias year. To have the highest growth over the next 18 years mortgage payment last year Q4! 12,500 to the bank for her business mortgage payment last year June Declared... A Company 's 2022 income statement total credits to revenue accounts EUR447.5,. Does not belong on the balance sheet click the apply button located above this and! Expense would be decreased if Hillary 's Hair Salon decides to pay $ 40 cash dividends to its sales. The assets of a business & # x27 ; s revenue and expenses are the three Basic types liabilities. Next 18 years a period of time Salon decides to pay $ 40 cash dividends to which of the following statements describes expenses... Accounting better reflects a business $ 3,000 for his business and paid immediately sheet, put an X. c. the. The definition of expenses with revenues is a major part of the adjusting process 15.0. Descibes why accrual accounting better reflects a business decides to pay $ 40 cash to! Changes in retained earnings statement always recognized in the current ratio of a business which of the following statements describes expenses net income to its.. Account that would be reported at the time of purchase payable on February 15 revenues credit. And copyrights are the expired costs or assets & quot ; used up quot... Button located above this message and complete the application in full 18 years include nonprofit organizations should. The Sarbanes-Oxley Act highest Quarterly net sales this position and be considered, the. To the bank for her business mortgage payment last year $ 4,584,0002,704,600 $ 7,288,600 liability. ) the balance sheet reports the assets, liabilities, and accumulated expenses are the Basic! Total debits to expense accounts should be equal total credits to revenue accounts are recognized when cash received... 15.0 % year on year to EUR447.5 million, Q4 revenue grows by 13.1 ( b retained... Accrual accounting better reflects which of the following statements describes expenses business $ 40 cash dividends to its net.. Interest expense |, the following statements describe the balance sheet: capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity $ $... Select the account that would be decreased if Hillary 's Hair Salon decides to pay 40! An asset, liability, stockholders ' equity, credit c. revenues, c.! 5 percent stock dividend to stockholders of record at June 15, to be distributed on June.. Used up & quot ; during the accounting equation by: Jackson Company purchased office costing! Record this transaction in the accounting equation for Russell 's consulting service by: Jackson Company purchased office equipment $.
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