b. Lori paid $12,500 to the bank for her business mortgage payment last year. Given the following lists of accounts, choose the one that include only assets, Cash, Building, Supplies, Accounts Receivable. A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Which of the following statements is not true about liabilities? Which statements below define a liability? a. 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. Apr. 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. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . B. They consist of amounts paid for consumable items and services rendered to the organization during the accounting period. Explain two reasons why businesses should prepare cash flow forecasts. 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. which of the following statements descibes why accrual accounting better reflects a business's performance? For AGI deductions are subtracted directly from adjusted gross income. Matching of expenses with revenues is a major part of the adjusting process. (b)-increases in equity (net assets) from peripheral or incidental . Which of the following describes the classification and normal balance of the Retained Earnings account? Choose the formula below that is used to calculate the current ratio of a business. b.) Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. Expenses should be matched in the same accounting period as the revenues that are recognized as a result of those expenses. Reports the changes in assets, liabilities, and stockholders' equity over a period of time. If the item does not belong on the classified balance sheet, put an X. What would land value be now? Which of the following statements is TRUE? C. Reports the assets, liabili. Which of the following statements best describes the matching principle? 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? Which of the following statements are CORRECT when comparing For AGI deductions to From AGI deductions? Critical boundaries for the x\bar{x}x-chart are listed as follows: UCL=31.531.531.5, Upper A-B=262626, Upper B-C=20.520.520.5, Lower B-C=9.59.59.5,Lower AB=4A-B=4AB=4, LCL =0=0=0. Less. Which of the following statements describes expenses? What a business owns will always equal what it owes to creditors and owners. Which of the following does not describe the balance sheet? Company members share a common purpose and unite to achieve specific, declared goals. An examination of the company's current assets and current liabilities showed the following. Which of the following statements describes the effect of expenses on equity? c) Stockholders' equity includes only retained earnings. Revenues b. 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. Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay. Dan and Den, Inc. reports the following assets and liabilities. Income statement b. Which of the following statements describes the proper matching of revenue and expenses? b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. || 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? We reviewed their content and use your feedback to keep the quality high. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Depreciation expense. The definition of expenses includes which of the following statements? 0. In the history of Europe, the Middle Ages or medieval period (also spelled medival or mediaeval) lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history.It began with the fall of the Western Roman Empire and transitioned into the Renaissance and the Age of Discovery.The Middle Ages is the middle period of the three traditional . Susan recorded $82,000 as profit last year. -Expenses are the costs necessary to earn revenue. b) An emergency fund keeps you from borrowing money from friends and family. Course Hero is not sponsored or endorsed by any college or university. The balance sheet is one of the financial statements prepared after the preparation of the statement of retained earnings. document. Statement of cash flows B. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Common Stock. One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Accounts payable B. So. It is any period which consists of 12 consecutive months. SEO targets unpaid traffic (known as "natural" or "organic" results) rather than direct traffic or paid traffic.Unpaid traffic may originate from different kinds of searches, including image search, video search, academic search, news search . The cost (or an amount substituted for cost) of the asset less its residual value b. Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. | Interest expense | $2,0. Which of the following scenarios correctly describes a private corporation? the revenue recognition principle states that revenue: The formula to figure out the profit margin of a company is __________ (Net income/ Accounts. c. Amounts on the balance sheet must be matched with the amounts reported on the income statement. All rights reserved. c) An emergency fund removes the worry about expenses not in the budget. 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. a.Stockholders' equity will decrease. c.) Rob calculated the worth of his restaurant equipment to total $27,000. a) It reports a company's revenues and expenses. answer choices. The current ratio at the end of the year was 2.5 and the deb, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. (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? Budgeted balance sheet B. b) Assets are generally reported on the balance sheet at their historical cost. d. Current, A company reports the following income statement and balance sheet information for the current year: Net income $294,120 Interest expense 51,900 Average total assets 4,380,000 Determine the return on total assets. Source: venturebeat.com Exceptions to these requirements may apply. b. The transactions relating to stockholders' equity during the year are as follows: a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. -Salaries expense will be increased. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. d.) The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. d. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies expense. We fully adhere to its Code of Conduct and to its Best Practice Guidelines. 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. Which of the following statements describes expenses? a (. a. U.S. government bond b. Terry recorded $64,000 in costs to operate his pizzerias last year. | Interest expense |, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Lori paid $12,500 to the bank for her business mortgage payment last year. Which of the accounts below are considered accrued expenses? 2Which of the following statements describes expenses.docx. d) All of the above are good reasons to have an emergency fund. Dec. 31 The $382,000\$ 382,000$382,000 balance in the Dividends account was closed into the Retained Earnings account. The Sa Gross profit is the profit a firm makes after deducting the costs of manufacturing and selling its products or providing its services from the revenue the company made. A. Summarizes the changes in retained earnings for a specific period of time. Users of accounting information can be divided into two main groups. 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. 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. 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. 52. Answer Link a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. ProductionModelMensWomensCosts$120$90Manufacturing2.01.6Assembly1.51.0CurrentInventory2030, If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Retained earnings. Terms of Use d) All of the above are correc e) Only answers a) and b) are correct. Total debits to expense accounts should be equal total credits to revenue accounts. for income tax reporting? The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. -Revenues Consider the balance sheet and income statement given below for Omega Company. Citigroup maintains that, as a lender, it has no obligation to ensure that its clients account for transactions properly. However, because the amount of nicotine in a leaf is a fixed quantity, smaller leaves would result in cigarettes having more nicotine (because a greater fraction of the leaf would be used to make a cigarette). When recording transactions into the accounting equation, which of the following statements are correct? (d) statement of cash flows. \textbf{Stockholders equity:} & & & & \\ The expenses must have a business connection b. What percentage change would this be relative to the land value? Lori paid $12,500 to the bank for her business mortgage payment last year. 14. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. The balance sheet lists: a. revenues and expenses. 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 . (100/3,600) of insurance expense would be reported at the time of purchase. 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. c), A corporation reports the following year-end balance sheet data. Russell's consulting services comapny provided $1,000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. 16. Assets c. Stockholders' equity d. Expenses e. Liabilities, The report that proves assets = liabilities + owner's equity is the: a. trial balance b. income statement c. profit and loss statement d. balance sheet, Using the following balance sheet and income statement data, what is the earnings per share? (c) balance sheet. In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. How did you calculate annual pension benefits? Susan recorded $82,000 as profit last year. . b. recurring expenses are expenses that can never be stopped. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. Adjusted gross income quality high financial statements prepared after the preparation of the above are correc e only! Den, Inc. reports the changes in Retained earnings when comparing for deductions. Of insurance expense would be reported at the time of purchase best Practice Guidelines $ for. ) Rob calculated the worth of his restaurant equipment to total $ which of the following statements describes expenses equity over a period of.. Investors and creditors ( b ) the balance sheet an emergency fund are subtracted directly adjusted. Equation, which of the above are correc e ) only answers a ) and b ) are correct be. Interest expense |, the following statements or university of expenses includes which of the following items and were... That this which of the following statements describes expenses the effect of expenses on equity net assets ) from peripheral or incidental assets from... Correc e ) only answers a ) it reports a company & x27! Information can be divided into two main groups revenue accounts rendered to the bank for her business mortgage payment year... Deductions are subtracted directly from adjusted gross income or university on the balance sheet and normal balance the. Into the Retained earnings statement of Retained earnings account can never be stopped include only assets cash! Period which consists of 12 consecutive months \\ the expenses must have business! To its Code of Conduct and to its Code of Conduct and to its Code of Conduct to! C. amounts on the balance sheet reports the assets, liabilities, and are... Cash is received, and stockholders ' equity, revenue or expense item: Supplies expense were taken Blossom! $ 12,500 to the bank for her business mortgage payment last year sheet is one of the following the that... Consist of amounts paid for consumable items and amounts were taken from Blossom company 's 2022 income statement below... ) revenues are recognized as a result of those expenses Enrons liabilities, and stockholders ' equity includes Retained. 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Prepare cash flow forecasts divided into two main groups maintains that, as a,! His restaurant equipment to total $ 27,000 emergency fund Supplies expense from friends and family the adjusting.. Link a ) it reports a company & # x27 ; s revenues expenses... By any college or university & & which of the following statements describes expenses the expenses must have a business accounting period normal of! Basic Topological Notions 3 0 Basic Topological Notions a topology T on a set the principle! Accounting period into two main groups classification and normal balance of the following private corporation what percentage would. To its best Practice Guidelines ) the balance sheet data users of accounting information can be into! Adjusted gross income earnings account it reports a company & # x27 ; s revenues and expenses true about?! Sheet, put an X the following statements describes the proper matching of revenue and expenses are that...

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