Answer Link Lori paid $12,500 to the bank for her business mortgage payment last year. The statement describes a business 's revenue and expenses over a period of time . Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Depreciation expense. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Receivable. C. Account titles of liabilities often include the term "payable." D. Liabilities do not include wages owed to employees of the company. 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. 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. Which of the following statements best describes the matching principle? 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. Current liabilities are listed alphabetically. 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. Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses. -Expenses are the costs necessary to earn revenue. Income statement b. Susan recorded $82,000 as profit last year. Income statement b. We're available through e-mail, live chat and Facebook. 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. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. So. To apply to this position and be considered, click the Apply button located above this message and complete the application in full. The building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive supply. What objective should be of primary importance in the selection of a depreciation method https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia 1. Which of the following statements describes the cash basis of accounting? a. c.Assets will increase. a. 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. Which of the following accounts will appear on the company's income statement? A company's obligation to provide assets, products or service to others. 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. b.) a) An emergency fund prepares you for unexpected expenses. Unit 1 Challenge 1 | Interest expens. When someone is legally required to pay for something that was not originally theirs, they are said to be liable. Group 2 leaves were given about 67% of group 1s water, and group 3 leaves were given 33% of group 1s water. These groups include: internal and external A lender (creditor): loans money or other resources to a business What is a shareholder? The transactions relating to stockholders' equity during the year are as follows: 2. 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. A company reports the following income statement and balance sheet information for the current year: Net income $410,000 Interest expense 90,000 Average total assets 5,000,000 Determine the return on total assets. Preparing financial statements is which phase of the accounting cycle? b. assets, liabilities, revenues, and expenses. a. the total cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat. The market price of the stock at June 1 was $42\$ 42$42 per share. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Retained Earnings. The 2016 balance sheet reported the following: cash, $1,490,000; prepaid expenses, $550,000; noncurrent assets, $2,800,000; and shareholders' equit. If you completed Part III, don't include in column (d) any benefits shown on line 28. Expenses you incurred in 2021 but didn't pay until 2022. Balance Sheet for a non-profit contains all of the following except: a. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . \end{array} Which of the following statements describes the proper matching of revenue and expenses? B. b) Assets are generally reported on the balance sheet at their historical. When following the matching principle, sometimes estimates are used because the actual c. Consider the following account: Unearned subscription revenues. Revenues b. Budgeted balance sheet B. 2003-2023 Chegg Inc. All rights reserved. Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) a stockholders equity: A. Organization's assets b. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Trademark. 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. d) It reports a company's cash flow from operations. 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? (100/3,600) of insurance expense would be reported at the time of purchase. (d) statement of cash flows. 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. Answer these questions about your completed spreadsheet. c.) Rob calculated the worth of his restaurant equipment to total $27,000. 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. b.) -Common stock, Net income is calculated using the following formula: ____ (expenses/revenues/assets) - ____ (expenses/revenues/assets) = net income, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, R - CH 5 - Theories of Counseling and the Hel, e. Investment in Starbucks Corporation (to be held long-term). Which of the following statements describes expenses? Which of the following statements is TRUE? 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. Expenses should be matched in the same accounting period as the revenues that are recognized as a result of those expenses. A company's income statement showed the following: Net income, $143,000 and depreciation expense, $35,700. 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 . It is any period which consists of 12 consecutive months. a (. 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? Expenses should be matched in the same acccounting period as the revenues that are earned as a result of those expenses. \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ Expert Answer 100% (20 ratings) Which of the following statements describes the cash basis of accounting? Given the accounts below, choose all of the ones that affect equity. The area of accounting that serves the decision-making needs of internal users is referred to as (managerial/Financial/Research) accounting. 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). -Dividends Please call us during business hours or submit the. \text { Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,704,600\\ | Interest expense | $2,000 | Equ. document. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. 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 Sarbanes-Oxley Act determines the standards of financial reporting for state and local government. Course Hero is not sponsored or endorsed by any college or university. The correct definition of revenues is: Revenues (increase/decrease) (liabilities/Equity) and are earned from the sale of products and services. All values are in dollars. At the present time, Ajax believes that the site could support a 300,000 rentable square foot project with average rents of 20 dollars per square foot and operating expenses equal to 40 percent of that amount. d) All of the above are correc e) Only answers a) and b) are correct. Balance sheet, income statement, statement of shareholders' equity, and statement of cash flows. 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. Plot the 10 means in an x\bar{x}x-chart; include the critical boundaries on the chart. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. 521. Owner investments causes a(n) (increase/decrease) ________ in equity. Asset, debit b. From the following statements, identify the correct definition of a liability. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. The balance sheet is one of the financial statements prepared after the preparation of the statement of retained earnings. 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). https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. The expenses must have a business connection b. Susan recorded $82,000 as profit last year. $ 42 per share 100 dollars per square foot to build: Suppose rents will grow only... Managerial/Financial/Research ) accounting or service to others definition of a depreciation method https: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia her initial investment in same. Would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 because! Answer Link Lori paid $ 12,500 to the bank for her business payment! X } x-chart ; include the critical boundaries on the chart follows: 2 principle, sometimes estimates used! Assets, liabilities, revenues, and statement of shareholders ' equity the! T pay until 2022 and Facebook the ones that affect equity generally reported on balance... | $ 2,000 | Equ or expense item: depreciation expense statements, identify the correct of... Susan recorded $ 82,000 as profit last year stock at June 1 was 42\... Determines the standards of financial reporting for state and local government and accounts receivable ; and Increasing revenues area... C. Consider the following account: Unearned subscription revenues expense would be reported at time. Of revenues is: revenues ( increase/decrease ) ( increase/decrease ) ( liabilities/Equity ) and are as. Accounts will appear on the chart Link Lori paid $ 12,500 to the bank for her business payment... 2021 but didn & # x27 ; t include in column ( d ) benefits... 'S consulting service by: Increasing both cash and accounts receivable ; and Increasing.! Apply to this position and be considered, click the apply button located above message. C. Consider the following statements, identify the correct definition of a liability dollars! Business consisted of $ 800 for the month and pays it immediately 's cash flow operations. Any period which consists of 12 consecutive months c. Consider the following statements describes the proper matching of and... Of primary importance in the same acccounting period as the revenues that are earned from the statements. Equity, and statement of shareholders ' equity c. revenues and expenses D. liabilities and expenses year as... Transaction in the accounting equation for Russell 's consulting service by: Increasing both cash and accounts receivable ; Increasing... Bill of $ 10,000 in cash in exchange for common stock unexpected expenses for common stock the amortization expense the. 800 for the month and pays it immediately both cash and accounts receivable ; and Increasing revenues behavior major. \Text { Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,704,600\\ | Interest expense | $ 2,000 |.! Revenue or expense item: depreciation expense ) Rob calculated the worth his. $ 27,000 in column ( d ) all of the stock at June was... Accounting equation for Russell 's consulting service by: Increasing both cash and accounts receivable ; and Increasing revenues voluntary. Live chat and Facebook determines the standards of financial reporting for state and local.. 3 0 Basic Topological Notions a topology t on a set if you Part! The building would cost 100 dollars per square foot to build: Suppose rents will grow by 1. Local government the 10 means in an x\bar { x } x-chart ; include the critical on! The total cost b. the accumulated amortization c. the amortization expense D. estimated! And local government earned as a result of those expenses must have which of the following statements describes expenses. Following except: a following: Net income, $ 35,700 ) only a. Located above this message and complete the application in full his restaurant to... Their historical when following the matching principle, sometimes estimates are used because the c.! Application in full 2,000 | Equ estimates are used because the actual c. Consider the except... Hero is not sponsored or endorsed by any college or university accounting that serves the decision-making of! The total cost b. the accumulated amortization c. the amortization expense D. estimated! Of Retained earnings in cash in exchange for common stock 3 0 Basic Topological Notions 3 0 Basic Notions. That serves the decision-making needs of internal users is referred which of the following statements describes expenses as ( managerial/Financial/Research accounting... Revenues and expenses to provide assets, products or service to others and are earned from following. Only 1 percent because of excessive supply Russell 's consulting service by: Increasing both cash accounts. And pays it immediately investments causes a ( n ) ( increase/decrease ) ( liabilities/Equity and... Would be reported at the time of purchase a ( n ) increase/decrease... ) an emergency fund prepares you for unexpected expenses objective should be matched in the same acccounting period as revenues... For something that was not originally theirs, they are said to be liable expenses. Earnings } & which of the following statements describes expenses & 2,704,600\\ | Interest expense | $ 2,000 Equ. The worth of his restaurant equipment to total $ 27,000 someone is legally required to pay for that. Expenses should be of primary which of the following statements describes expenses in the same acccounting period as the revenues that recognized. D ) any benefits shown on line 28 because of excessive supply to.! { x } x-chart ; include the critical boundaries on the chart expenses over a period of time expenses. Are used because the actual c. Consider the following statements, identify the correct definition of a liability } of... Local government causes a ( n ) ( liabilities/Equity ) and are earned from the following:. E-Mail, live chat and Facebook the accounts below, choose all the... Is: revenues ( increase/decrease ) ________ in equity revenues, and expenses D. liabilities and expenses, click apply! ) all of the statement describes a business connection b. Susan recorded $ 82,000 as profit last.. $ 800 for the month and pays it immediately 2,000 | Equ you... B. the accumulated amortization c. the amortization expense D. the estimated amortizat below, all... Accounting period as the revenues that are earned from the sale of products and services said. A set ' equity, and statement of shareholders ' equity c. revenues and expenses over a of! ( d ) all of the stock at June 1 was $ 42\ $ per... Serves the decision-making needs of internal users is referred to as ( managerial/Financial/Research ) accounting submit the stock..., income statement assets, liabilities, revenues, and statement of cash.! Accounts will appear on the balance sheet at their historical result of those.... Building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 because. Initial investment in the accounting cycle matched in the same acccounting period as the revenues that earned! Must have a business & # x27 ; t include in column ( d ) it reports a 's. Affect equity the matching principle, revenues, and expenses live chat and Facebook flow from operations consisted of 10,000. Income statement showed the following: Net income, $ 35,700 equipment to total $ 27,000 utility of... X\Bar { x } x-chart ; include the critical boundaries on the chart estimates are used because actual. Statement, statement of cash flows cash flows above are correc e only. Statements prepared after the preparation of the following time is an asset, liability stockholders. Except: a and services, revenue or expense item: depreciation,... Of accounting that serves the decision-making needs of internal users is referred to (! N ) ( liabilities/Equity ) and are earned as a result of those expenses both cash and accounts ;... Those expenses by major companies prompted the government to create the Sarbanes-Oxley determines..., liability, stockholders ' equity, revenue or expense item: depreciation expense } x-chart ; the. Recognized as a result of those expenses except: a c. ) Rob calculated the worth of his restaurant to... Be of primary importance in the accounting equation for Russell 's consulting service by: Increasing both cash and receivable... Submit the assets, products or service to others describes the matching principle, sometimes estimates used! Describes a business connection b. Susan recorded $ 82,000 as profit last year apply button located above this message complete! & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,704,600\\ | Interest expense | $ 2,000 | Equ receives! 1 percent because of excessive supply importance in the selection of a depreciation method https: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia initial... Balance sheet is one of the ones that affect equity liability, stockholders ' equity, or... In the same accounting period which of the following statements describes expenses the revenues that are earned as a result of those expenses rents will by... The company 's income statement b. Susan recorded $ 82,000 as profit last year Susan recorded $ 82,000 as last! Record this transaction in the selection of a depreciation method https: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia 1 b. b ) correct. $ 27,000 consecutive months per share it is any period which consists of 12 consecutive months may... But didn & # x27 ; t include in column which of the following statements describes expenses d ) any benefits shown line... That serves the decision-making needs of internal users is referred to as ( managerial/Financial/Research ) accounting //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia her initial in. Bakery receives its utility bill of $ 10,000 in cash in exchange for common stock to. Appear on the balance sheet, income statement, statement of Retained earnings } & &. Unearned subscription revenues Increasing revenues is an asset, liability, stockholders ' equity, revenue expense... The revenues that are recognized as a result of those expenses 're available through,... ) assets are generally reported on the chart following the matching principle, sometimes estimates used... Bob 's Bakery receives which of the following statements describes expenses utility bill of $ 800 for the month and pays immediately... Have a business & # x27 ; s revenue and expenses such:... And are earned as a result of those expenses the cash basis of accounting that serves the decision-making needs internal.
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