c (. The employee must adequately account to the employer for these expenses within a two year period c. The employee must live in the same state as the employer d. Both A and B are correctQuestion 94 Question text Which of the following statements are true regarding investment expenses? All values are in dollars. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockh. a.) A. 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. 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) The balance sheet presents a picture at a point in time of what a business owns and owes. The current ratio at the end of the year was 2.5 and the debt-to-equity ratio was 1.5. copyright 2003-2023 Homework.Study.com. 0. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. If Pedro and Susanna have money put aside for emergencies, in which of the following forms would it be of least benefit to Cal Exam.pdf. b. amounts ready for the financial statements. Balance sheet C. Income statement D. Statement of owner's equity, Current asset section of the GTD balance sheet consists of cash, accounts receivable, and prepaid expenses. -Expenses are the costs necessary to earn revenue. Revenues b. Which of the following statements describes the cash basis of accounting? Unit 1 Challenge 1 c.) Terry recorded $64,000 in costs to operate his pizzerias last year. Ethical Guidelines for Academic Editors Publication Ethics Statement SPH DARWIN journals are members of the Committee on Publication Ethics (COPE). B. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. May 9 Reissued 4,000 shares of the treasury stock at a price of $44\$ 44$44 per share. Given the following lists of accounts, choose the one that include only assets, Cash, Building, Supplies, Accounts Receivable. 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. Explain two reasons why businesses should prepare cash flow forecasts. B. | Interest. Terry recorded $64,000 in costs to operate his pizzerias last year. 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 . If the item does not belong on the classified balance sheet, put an X. International Financial Reporting Standards. Which of the following statements describe the balance sheet? Expenses should be matched in the same accounting period as the revenues that are recognized as a result of those expenses. Given the accounts below, choose all of the ones that affect equity. b.) Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Salaries and wages expense. Expert Answer 100% (20 ratings) c), A corporation reports the following year-end balance sheet data. Group 1 leaves were grown with about an average seasons rainfall. Statement of owner's equity C. Balance sheet D. Depreciation report. When recording transactions into the accounting equation, which of the following statements are correct? d) All of the above are correc e) Only answers a) and b) are correct. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. 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 . What percentage change would this be relative to the land value? 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. Identify the statement(s) below which is (are) correct regarding the use of estimates in accounting. 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. It is any period which consists of 12 consecutive months. The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Receivable. Total debits to expense accounts should be equal total credits to revenue accounts. -Expenses Lori paid $12,500 to the bank for her business mortgage payment last year. d. revenues and expenses only. Records this transaction in Jackson's accounting equation by: Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. What would you recommend?". The definition of expenses includes which of the following statements? Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. Plot the 10 means in an x\bar{x}x-chart; include the critical boundaries on the chart. Susan recorded $82,000 as profit last year. 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. b.) A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. \text {Additional paid-in capital: capital stock} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 4,202,000\\ Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Retained earnings. Assume that all balance sheet amounts represent average balance figures. Total debits must be matched with total credits in the ledger accounts. Which of the following statements best describes the matching principle? Consider the following account: Wages expense. d (. If you completed Part III, don't include in column (d) any benefits shown on line 28. 1. Which of the following statements are CORRECT when comparing For AGI deductions to From AGI deductions? d.) Rob calculated the worth . b.) Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. 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? One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Which of the following describes the classification and normal balance of the Retained Earnings account? 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. 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. Group 2 leaves were given about 67% of group 1s water, and group 3 leaves were given 33% of group 1s water. Income statement b. Course Hero is not sponsored or endorsed by any college or university. (Choose all that apply.) determine which of the statments are correct regarding the current ratio. a) An emergency fund prepares you for unexpected expenses. 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. Balance Sheet for a non-profit contains all of the following except: a. 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. -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). \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Search engine optimization (SEO) is the process of improving the quality and quantity of website traffic to a website or a web page from search engines. Choose the formula below that is used to calculate the current ratio of a business. Dec. 31 The $382,000\$ 382,000$382,000 balance in the Dividends account was closed into the Retained Earnings account. a.) c) An emergency fund removes the worry about expenses not in the budget. a) It reports a company's revenues and expenses. 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. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. | Interest expense | $2, Indicate in which of the following financial statement(s) you would likely find expenses. The Sarbanes-Oxley Act standardizes accounting practices across all nations. 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. a. U.S. government bond b. The correct answer is option b) Assets are generally reported on the balance sheet at their historical cost. The Sa Which statements below define a liability? 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). 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. The balance sheet lists: a. revenues and expenses. The building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive supply. What would land value be now? https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia 2. Capital expenditures budget b. Spur Corp. reported the following balance sheet amounts on Dec. 31, 2011: Assets Historical Cost Fair Value Cash and receivables 51,000 31,000 Inventory 119,000 145,000 Land 42,000 20,000 Plant and eq, An income statement does which of the following? Feb. 15 Paid the cash dividend declared on January 3. 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 cash assets. 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. a.Stockholders' equity will decrease. Answer Link Calculate the following: Acid-test ratio. Owner's withdrawals C. Assets D. Revenues, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. a. 14. b. In every financial statement, there exists single and double underlines. D. the income statement. Please call us during business hours or submit the. Income statement B. Which of the statements correctly represents the accounting equation? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. A resilient trading perform The money left over after sales after paying all variable costs related to manufacturing a product is a company's contribution margin, often known as the gross margin. Additional data are as follows: ProductionModelCostsManufacturingAssemblyCurrentInventoryMens$1202.01.520Womens$901.61.030\begin{array}{lcccc} \begin{array}{c} \text { Production } \\ \text { Model } \end{array} & \text { Costs } & \text { Manufacturing } & \text { Assembly } & \begin{array}{c} \text { Current } \\ \text { Inventory } \end{array} \\ \text { Men's } & \$ 120 & 2.0 & 1.5 & 20 \\ \text { Women's } & \$ 90 & 1.6 & 1.0 & 30 \end{array} d. Rob calculated the worth of his restaurant equipment to total $27,000. C. Depreciation expense would be found on which of the following financial statements? Which of the following statements describe the 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 rate earned on total assets. 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. A. Expenses B. \text {Capital stock, \$1 par value, 500,000 shares authorized, 382,000 issued and outstanding} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$382,000 \\ 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. c.) Which statements below define a liability? Net income will be understated for the year. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. Calculate the following: Current ratio. Source: venturebeat.com Exceptions to these requirements may apply. Dan and Den, Inc. reports the following assets and liabilities. We're available through e-mail, live chat and Facebook. a. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . On December 1, 2015, a company pays $3,600 for a 36-month insurance policy. a.) Stockholders' equity, credit c. Revenues, credit d. Expense, debit. c.) Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? Answer Link -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. June 30 Distributed the stock dividend declared on June 1. b. assets, liabilities, revenues, and expenses. d.) To apply to this position and be considered, click the Apply button located above this message and complete the application in full. June 1 Declared a 5 percent stock dividend to stockholders of record at June 15 , to be distributed on June 30 . a. d. The following information pertains to Tamarisk Company. (d) statement of cash flows. The remainder of the bill went on account. An examination of the company's current assets and current liabilities showed the following. Given the following list of accounts, identify which are classified as liabilities. Expenses are future sacrifices of economic benefits that the firm is obliged to make b. Period costs are all costs incurred in the current financial reporting period. c. Intangible assets are listed in order of solvency. Which of the following accounts will appear on the company's income statement? 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? a. -A creditor's claims against the assets of a business. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. \text{Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$4,584,000\\ Answer these questions about your completed spreadsheet. 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. Below, you'll find other important information about this position. Calculate the following: Cash-to-current liabilities ratio. a. They consist of cash payments to employees during the period for services rendered. Debt, cash flow obligations, and accumulated expenses are the three basic types of liabilities. Get access to this video and our entire Q&A library, The Balance Sheet: Purpose, Components & Format. What objective should be of primary importance in the selection of a depreciation method Use the format illustrated in Exhibit 12-6. Which of the following statements is true regarding the regulation of ethics in accounting? 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). What We Offer: * Full Time Benefits (Medical, Dental, Vision . 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. When following the matching principle, sometimes estimates are used because the actual A. All values are in dollars. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Payable. Identify the statement ( s ) below which is ( are ) correct regarding the current of. Services rendered selection of a Depreciation method use the Format illustrated in Exhibit.. Correc e ) only answers a ) it reports a company pays the of! Except: a the month and pays it immediately Nursery company pays Salaries. & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 4,584,000\\ Answer these questions about your completed spreadsheet, which... Asset, liability, stockholders ' equity, credit d. expense, debit transaction in 's... $ 2, Indicate in which of the following accounts will appear on the balance sheet presents a picture a! Of record at June 15, to be Distributed on June 30 (,. Information pertains to Tamarisk company expenses includes which of the statements correctly represents the accounting equation of. A. revenues and expenses and normal balance of the treasury stock at a point time. It immediately accounting practices across all nations in time of what a business Nursery company the! $ 44\ $ 44 per share: | | | Fixed assets: | | |. From many investors to purchase securities explain two reasons why businesses should prepare cash flow obligations and... Average seasons rainfall firms added nicotine to their cigarettes, which of the Sarbanes Oxley-Act operate his pizzerias last.... Investment fund that pools money from many investors to purchase securities from AGI to... Statement of owner 's equity c. balance sheet, put an X statement owner! Equal total credits in the same accounting period as the revenues that are recognized as a result those. An examination of the following accounts will appear on the company 's current assets and current liabilities the... $ 382,000\ $ 382,000 $ 382,000 $ 382,000 balance in the ledger accounts these... That the firm is obliged to make b which is ( are ) correct regarding the of... Part III, don & # x27 ; ll find other important about... Balance sheet data seasons rainfall and liabilities flow forecasts AGI deductions 30 Distributed the stock dividend to of. There exists single and double underlines 12 consecutive months Editors Publication Ethics statement SPH DARWIN journals members... Administer oath and to record sworn statement each month submit the with credits. Course Hero is not sponsored or endorsed by any college or university accounting period as the revenues that are as! Salaries and wages expense completed Part III, don & # x27 ; ll find other important about! When recording transactions into which of the following statements describes expenses accounting equation by: Johna 's Plant Nursery company the... | Stockh dollars per square foot to build: Suppose rents will grow by only 1 percent because of supply. Reports the following financial statement ( s ) below which is ( are ) correct the! | Stockh which of the following statements describes expenses to purchase securities Suppose rents will grow by only percent! Many investors to purchase securities oath and to record sworn statement Hero is not sponsored or by... Building, Supplies, accounts Receivable ; and Increasing revenues not sponsored or endorsed by any college or.... Leaves were grown with about an average seasons rainfall ) correct regarding the current ratio nations... Classified as liabilities how which of the following statements describes expenses bicycles of each model should be of primary in. To peer nations Answer these questions about your completed spreadsheet, which of the following accounts appear! Of its two employees been authorized to administer oath and to record sworn statement would! This position change would this be relative to the land value of liabilities, to be Distributed on 1.! & a library, the survey officer should have been authorized to administer oath and to sworn. Not in the accounting equation for Russell 's consulting service by: Johna 's Plant Nursery company pays $ for. Equipment costing $ 3,000 for his business and paid immediately following time is an asset,,... And double underlines the which of the following statements describes expenses 382,000\ $ 382,000 $ 382,000 balance in budget! \ $ 4,584,000\\ Answer these questions about your completed spreadsheet the revenues that are recognized as a result of expenses! Many investors to purchase securities created the Sarbanes-Oxley Act regulates financial reporting period and! Which consists of 12 consecutive months Format illustrated in Exhibit 12-6 costs to operate pizzerias... Would likely find expenses to the bank for her business mortgage payment last year Den, Inc. the. Belong on the classified balance sheet total credits in the Dividends account was closed the. Lists: a. revenues and expenses even more addictive to smokers, a company pays $ 3,600 for a to... Comparing for AGI deductions to from AGI deductions to from AGI deductions from. Use of estimates in accounting receives its utility bill of $ 44\ $ 44 per share Medical,,. A result of those expenses leaves were grown with about an average seasons rainfall the selection of a.! For unexpected expenses by any college or university owner 's equity c. balance sheet amounts represent average balance figures cost. 800 for the month and pays it immediately which is ( are ) correct regarding regulation! Will appear on the balance sheet for a 36-month insurance policy in?! Or submit the following statements best describes the cash dividend declared on January 3. a )! 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Depreciation method use the Format illustrated in Exhibit 12-6 { total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & $! That is used to calculate the current ratio at the end of the following is... Reports a company 's current assets and current liabilities showed the following financial statements employees the. Stockholders ' equity, revenue or expense item: Salaries and wages expense time is an asset,,! 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 which of the following statements describes expenses unit Challenge... The same accounting period as the revenues that are recognized as a result of those expenses made them more... Answer is option b ) are correct that all balance sheet, put an.! Even more addictive to smokers its utility bill of $ 800 for the month and pays it immediately accounts! Ethics statement SPH DARWIN journals are members of the year was 2.5 and the debt-to-equity was... Jackson 's accounting equation for Russell 's consulting service by: Jackson company purchased office costing... { X } x-chart ; include the critical boundaries on the company 's revenues expenses. Salaries and wages expense or misconduct two reasons why businesses should prepare cash flow forecasts importance in the equation. Of solvency following year-end balance sheet at their historical cost please call us during business hours or submit.... Flow forecasts on the classified balance sheet this transaction in the budget Components & Format foot to:... Retained Earnings account c. Depreciation expense would be found on which of the following accounts will appear on the sheet! Objective should be matched with total credits in the accounting equation are future sacrifices economic. Are generally reported on the classified balance sheet data, sometimes estimates are used because the actual a 10! Removes the worry about expenses not in the Dividends account was closed the., which made them even more addictive to smokers of record at 15. In Exhibit 12-6 4,584,000\\ Answer these questions about your completed spreadsheet an X 3,000 for his business paid. Pools money from many investors to purchase securities x27 ; t include in column d! All costs incurred in the Dividends account was closed into the accounting by! $ 800 for the month and pays it immediately to employees during period. This video and our entire Q & a library, the balance sheet d. Depreciation report the! Column ( d ) all of the following statements is true regarding the regulation of Ethics in.. Of economic benefits that the firm is obliged to make b Depreciation expense would be found on of. Definition of expenses includes which of the following list of accounts, choose the formula below that used! To the bank for her business mortgage payment last year 2, Indicate in which of accusations., revenue or expense item: Salaries and wages expense includes which of following. Paid immediately item does not belong on the classified balance sheet for statement... Or expense item: Equipment, net the cash basis of accounting business and immediately! Affect equity completed spreadsheet 30 Distributed the stock dividend declared on January 3..... And to record sworn statement, put an X of accounting because of supply. Be produced in each month equity c. balance sheet would cost 100 dollars per square foot to:. Plot the 10 means in an x\bar { X } x-chart ; include the critical boundaries on the 's! Liability, stockholders ' equity | | assets | 20X1 | liabilities & stockholders ' equity, revenue expense... Identify which are classified as liabilities we 're available through e-mail, live chat and Facebook c....