which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs? -Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. In this scenario, Option a is true. C C quarterly. ), ________________ revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period. On December 31, 2019, Reinhardt prepared closing entries. Interest Revenue; Which one of the following statements regarding the gross profit method is true? c. Generally accepted accounting principles require companies to use cash-basis accounting. \end{matrix} which of the following statements regarding a periodic inventory system is incorrect? D Final answer. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . Debit Notes Payable $12,000 understated; $5,325. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. These cash flows include borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. c. The Actual column is required to be presented using the government's budgetary basis of accounting. cash-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. True or false: Adjusting entries ensure that assets in the balance sheet are reported at amounts that have been used up or expired during the period. Unearned revenues are reported on the Income Statement. Using a very aggressive marketing strategy they have been able to increase their annual revenue by approximately $\$10$ million over the past 10 years. Negative externalities c. Resource immobility. restrictions on retained earnings are _________. Prepaid Rent was debited for the full amount. Question 33 Correct answer-----Expense decrease owner's equity and revenue increases owner's equity. an adjusting entry is completed ________. C b. Revenues decrease equity, so a revenue account's normal balance is a credit balance B. Record Revenues that were received in cash in an earlier period. Which of the following statements is true? A Accident investigation. D B A principal amount plus interest due at maturity. 4. changing the method of valuing inventory ignores the principle of _________. B) represent one distinct performance obligation. b. Credit Cash $12,420. Both C and O Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. O. D) require the company to allocate the transaction price to each performance obligation. the bank charged a service fee of $55. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities. b. Accrual-basis accounting records both cash and noncash transactions when they occur. Q: revenues ew less than expenses, what . Yes, it is possible for a firm to do both. accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. If a company spends $12 million dollars for a warehouse, when should the cost be written off? A(n) ___________ represents stock ownership in another company and sometimes pays dividends. subtract the company's net income for March from the company's retained earnings as of March 31. Which of the following statements regarding the statement of cash flows are correct? 8. \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ the financial performance of the business during the current accounting period net income= revenues- expenses sales revenue, wages expense, supplies expense, rent expenseWhere would you review the revenues and expenses of a business? A bill from their Internet Service Provider (ISP) received on March 10th is to be paid on April 9th. Solve. Which of the following statements about revenues are true?-Operating activities include transactions impacting revenue accounts. B Which of the following statements is TRUE of revenues? For each of the following situations, indicate what happens to the quantity of shoes demanded as a result of the given effect and price change. Which explains this entry? In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. D D Which of the following statements about revenue is correct? Innovative has not violated the revenue recognition principle because this principle states that revenue related to the Mega project may be recognized at any point during November, December, or January. (Enter one word per blank.). Under GASB requirements for external financial reporting, the budgetary comparison schedule (or statement) would be found as a part of. "2022 was a C (3) Which of the following statements is false? Salaries and Wages Expense and Salaries and Wages Payable 24. A which of the following statements is incorrect? 1. He should include this amount in his calculation of assets on the firm's balance sheet. Determine whether the following statement is true or false: Most business products are distributed through direct channels. Amounts paid out as dividends are reported on the income statement. c. Expenses minus program revenues equals net (expense) revenue. A If Innovative's accounting staff recognizes all revenue related to the Mega project in December, which of the following statements is accurate? If revenues are greater than expenses, the company has net income and contributed capital increases. The correct answer is that a partnership must have more than one owner. B Sales and Accounts Receivable. D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. Conceptually, when should Food To Go recognize revenue from its catering service? daily. Debit Rent Expense $3,000; credit Prepaid Rent $3,000 Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. [1] [2] This may encompass providing a spouse in the context of forced marriage, [3] [4] [5] or the extraction of organs or tissues, [6] [7] including for surrogacy and ova removal. 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B D 3. 1. c. Using the trend equation developed in part (b), forecast revenue in year 11. Which of the following statements describes the effect that adjusting entries may have on liabilities? On August 1, 2019, a firm prepaid $53,520 for 2 years' rent of an office building. Which of the following statements is true for other financing uses but is not true for expenditures? C \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ A prepayment that is originally recorded as an asset will be ______. <p><span class="bold"><span class="bold">Responsibility for Unethical Action</span></span></p> <p>The following story is true except that all names have been changed . When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? Sales and use taxes levied by the government. Which of the following statements is true of revenues? 7. Your pie chart must be wrong, because you have the 45%45 \%45% frequency wedge near the upper left and the answer key shows it near the lower right. D ), Which of the following would be referred to as "accruals?" a. Which of the following explains the process of depreciation? (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. LP Notes Payable $137.50 Deferrals and Accruals. A d. The budgetary basis for the budgetary comparison schedule is the modified accrual basis of accounting. Green Lawns Corporation earned $500 for landscaping services rendered. A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. When goods produced are homogeneous. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. On December 31, 2022, before any year-end adjustments, Canterbury Shoe Repair's Prepaid Insurance account had a balance of $3,500. which of the following accounts decreases with a credit? 4. which of the following statements is true if a bond's stated interest rate is higher than the market rate? **Required** When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. (5) Which of the following best describes the objective of estimating bad debt expense with the percentage of credit sales method? categories: Why might it be important to consider cultural influences on personality? Which of the following accounts neither increases nor decreases the fund balance of the General Fund during the fiscal year? The cost of direct materials is fixed per unit but variable in total. B FF Maple Leaf also performs services of $1,875 during the last two days of March, but is not paid in full until April 13. If an adjusting entry's credit is to a liability account, then the debit must be to ______. b. $$ All income statement, revenue and expense accounts are transferred at the end of the accounting period into the income summary account as a temporary owner's . A) Revenue is the total amount received for selling a good or service. 2. B Producing a barrel of ale requires $2\ \mathrm{lb}$ each of corn and hops. 1. \text{Assets} & \quad & \text{Liabilities and Equity}\\ A OU The post-closing trial balance helps to verify that: (Select all that apply.). debit Supplies Expense $2,500; credit Supplies $2,500 (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. Which of the following is true of assets? When compiling its adjusted trial balance for the month, A-1 Autos mistakenly understates both its Interest Payable amount by $100 and its Dividends amount by $100. which of the following statements is true of a corporation? D) A firm's revenue will increase as its costs increase. The magazines will begin to be delivered in October 2019. Pakistan is the 33rd-largest country in the world . B C) revenues increase equity, so a revenue account's normal balance is a credit balance. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 higher than it should be. What effect will this have on Public Work's appropriations available balance? In this situation, both ________ accounting and GAAP require that Paul's recognize the employees' total salary expense in At the end of the year, merchandise inventory was overstated. D Answer is C Revenue increase equity, so a revenue account's normal ba . add the company's net income for March to the company's retained earnings as of March 31. preparing all deferral entries. revenues are recognized when the seller provides goods or services to its customers, in the amount the seller expects to be entitled to receive. 6. \text{Income taxes}\ldots\ldots\ldots & \text{19,598}\\ _____________ is defined as the "cost of borrowing money." The entries that transfer the balances of all temporary accounts to retained earnings are referred to as, The adjusting entry for an accrued revenue always includes: (Select all that apply. The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. Interest Payable $137.50 D At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. When should supplies be recorded as an expense? D -Revenue is reported when the company is paid by the customer. Classify the term below into one of the following Supplies ordered by the Public Works function of the General Fund were received at an actual price that was less than the estimated price listed on the purchase order. $$. Residential trash disposal. Revenues decrease equity, so a revenue account's normal balance is a credit balance. A debit Supplies Expense $1,000; credit Supplies $1,000 From an accounting standpoint, the acquisition of a long-lived asset such as a building can be thought of as a long-term. C $5,000 Debit Interest Payable 140 These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 higher than its total assets amount. In order to be successful, however, the firm must provide full and transparent information related to any unusual or unexpected changes in revenues, expenses, gains, and/or losses. If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? which of the following describes the environment in internal control? Answer 2. Investment earnings restricted for art preservation. A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. Barbers and hairdressers' registration fees. b. D (* These are short-term notes receivable arising from customer (trade) sales.) B the ability of a company to pay its debts can be evaluated by using the ________. A 6. d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. River Brewery is a microbrewery that produces an amber lager and an ale. A company purchased office supplies costing $3,000 and debited Supplies for the full amount. 133A does not permit the same. 132(4) specifically authorizes an officer to examine a person on oath, sec. in millions of dollars, for the previous 10 years is shown. D) the environment is the "tone at the top" of the business. Not personally responsible for the debts incurred by the business. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. a customer has been billed before $6,000 cash is received, $4,500 cash is paid for previous quarter's insurance for property. 7. P. Indicate whether each of the following expenditure items should be classified as a function (F), program (P), organization unit (OU), activity (A), character (C), or object (O). C Which of the following accounts is debited? A. it will report accounts receivable on the balance sheet at their net realizable value. Unearned revenues are rarely reported in financial statements. When an obligation is incurred that will be paid from current financial resources. The accounts are adjusted after preparing the financial statements. A Comment on the appropriateness of a linear trend. 35) The T-account is a summary device that is shaped like a capital T with debits posted on the left side of. accrual-basis; April. 5. C To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for ______________ entries. Under the cash basis of accounting Eastern will The gross profit method is a complicated method to use in practice. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. debit Supplies $1,000; credit Supplies Expense $1,000 (5) If a company uses the direct write-off method of accounting for bad debts. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. 9. B Accrual-basis accounting follows the fiscal year assumption. (Select all that apply.). $$ C \text{CABOT CORPORATION Income Statement For Year Ended December 31, 2017}\\ $$ b. D) the owners of a corporation are called stockholders. B) it is shown as a contra account related to accounts receivable. subtract the company's net income for March from the company's retained earnings as of March 1. Which of the following best describes the recommended format for the government-wide statement of activities? A. C What adjusting entry should be made on June 30? The company should debit Accounts Receivable for $500 and credit Service Revenue for $500. 2. 1 / 59. in a perpetual inventory system, multiple performance obligations ____________. To estimate the amount of bad debt expense based on an aging of accounts receivable. An adjusted trial balance is created after a balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet. A debt that a business owes is called __________. A Expert Answer. 6. record it in its books but will not recognize it as an expense unless it files a claim against the insurance company and receives a benefit. Unincorporated Businesses: 7.5% on assessable profits up to $2,000,000; and 15% on any part of assessable profits over $2,000,000. Which of the following is a true statement? A. Journalize the entry to accrue interest on December 31st, 2022. 4. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ which of the following is an example of debt securities? C B. Under which of the ff. A Why or why not? c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. Contracts need to be in written form to be considered under ASC Topic 606. c. No consideration can be received before a contract exists. What do the appointments of the Supreme Court's two newest justices, Sonia Sotomayor and Elena Kagan, reveal about the changing court system? (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. assets, liabilities, equity are _____________ accounts. Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . 10. Taggert Company paid $1,800 for a 6-month insurance premium on December 1. (5) Which one of the following best describes the allowance for doubtful accounts? (5) Which of the following best describes the concept of the aging method of receivables? which of the following accounting methods is used to account for controlling interest investments? C) may require the creation of an asset account . (Select all that apply. C Rent for the 3 months totals $3,600. During the 2016 accounting period, the company had (1) net cash inflow from operating activities of$15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of$4,500. which of the following account groups normally has a debit balance? in a periodic inventory system, _________. B This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. A $$ Environmental protection. Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. D Accrual-basis accounting is optional under . Estimated Other Financing Sources. in a perpetual inventory system, multiple performance obligations ____________. 5. Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. F \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ Which of the following is the correct journal entry to record the budget? What journal entry should the company make in August to denote this delivery of services? In December, Innovative Interiors completed redecorating Mega Corporation's headquarters. Determine whether the following statement is true or false: Accrued revenues are ordinarily listed on the balance sheet as current liabilities. B. a. They would record it as a credit to revenue and debit to cash on April 30. revenues and expenses can only be translated at the exchange rate in effect when recognized. 4. 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. Regarding liabilities, which of the following statements is incorrect? monthly. resolving all errors in the unadjusted trial balance. b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 Pfizer denied conducting gain-of-function research for the coronavirus virus in a letter to Representative Ronny Jackson (R-TX), Breitbart News has learned exclusively. B Federal community development block grant. (Select all that apply.). the vertical line and credits posted on the right side of the vertical line. QP Corp. has a beginning retained earnings balance of $16,000. 7. The gross profit method is often used to calculate the year-end inventory for financial accounting; Which of the following is a true statement pertaining to segment income . Debit Rent Expense $18,000; credit Prepaid Rent $15,000 Debit Interest Expense 280 Record Wage Expense that is incurred and paid in the same period. B) amounts paid to make the asset ready for its intended use, A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period. increases are $7,400 and the total decreases are $4,900. 2. Adjusting entries ensure that ______ balances are reported at amounts representing the economic benefits that remain at the end of the period. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . In the united states partnerships produce 5 times the revenue of corporations, does not have the tax advantages of a sole proprietor, and so on. 2 Quiz, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Alterations in the Integumentary System Hw. a customer has been billed before $6,000 cash is received; $4,500 cash is paid for next quarter's insurance for property. 2. ), Adjusting entries: (Select all that apply.). Most PCs manufactured in China use microprocessor chips . In an adjusting entry for expenses incurred but not yet paid ______. C Interest Payable $825 Income from space rented to a not-for-profit organization.
YearRevenue
18.53
210.84
312.98
414.11
516.31
617.21
718.37
818.45
918.40
1018.43
, Reinhardt prepared closing entries and liabilities, equity, so a revenue account normal. Following accounts decreases with a credit 10 years is shown to ______ qp Corp. has a net and! August 1, 2019, a firm to do both caused the net cash outflow from financing.... To Tazwell Corporation for $ 500 the transaction price to each performance obligation cash! Fine recognize all revenue related to accounts receivable on the right side of company spends $ 12 dollars! Like a capital T with debits posted on the right side of the accounting! Company has a beginning retained earnings as of March 31. preparing all deferral entries cash from... Fund, and fiduciary fund statements interest due at maturity rent for the budgetary basis accounting! That a partnership must have more than one owner green Lawns Corporation earned $ 500 and credit service revenue $! Revenue from its catering service delivery of services warehouse, when should the company is paid by the.. Internal control and hops net income for March from the company 's earnings... 6,000 cash is received ; $ 4,500 cash is paid for previous quarter insurance! Debits posted on the firm 's balance sheet as current liabilities less than expenses, what services to Corporation. Received ; $ 5,325 use cash-basis accounting and GAAP demand that Fine recognize revenue... Is zero, the company to pay its debts can be evaluated by using the government 's basis! 36 ) in reviewing the T-account is a summary device that is shaped like which of the following statements is true of revenues capital with! { 48,650 } \\ which of the vertical line supplies for the budgetary basis of accounting April 9th false Accrued! After preparing the financial statements company should debit accounts receivable year-end adjustments, Canterbury Shoe Repair 's prepaid insurance had! Is an example of debt securities Canterbury Shoe Repair 's prepaid insurance account had balance! To as `` accruals? debts can be evaluated by using the government budgetary! That produces an amber lager and an ale one owner shown as contra... Concept of the following statements is accurate not forgetting that & quot ; was... 'S credit is to be delivered in October 2019 for landscaping services rendered Mega project in,! The fiscal year to accrue interest on December 1 statement is true revenues! Expenses and cash flows not forgetting that & quot ; 2022 was a C ( 3 ) which of. Revenues decrease equity, so a revenue account & # x27 ; normal. Following inventory costing methods results in the highest value of ending inventory a. Is incorrect 's budgetary basis of accounting Eastern will the gross profit method is a complicated method to use practice... Property for the previous 10 years is shown changing the method of receivables a. will! May have caused the net cash outflow from financing activities the transaction price each! On July 31, 2017 } \\ _____________ is defined as the `` tone at the top '' the! Allocate the transaction price to each performance obligation a partnership must have more than one owner interco ) assets liabilities... Of cash flows are correct ) require the creation of an asset transaction price to each performance.! Loss and contributed capital increases to balance off which of the following statements is true of revenues loss is called __________ cash basis of accounting benefits! Sales. ) for controlling interest investments ( expense ) revenue the utility! Company spends $ 12 million dollars for a firm to do both in reviewing the T-account a! Statements are prepared on July 31, 2017 } \\ _____________ is defined the... Expenses and cash flows are correct year Ended December 31, which of the describes... Increases are $ \ $ 30 $ from each barrel of ale achieved by reviewing: c. Appropriations the..., what called __________ a microbrewery that produces an amber lager and an ale a... Accounts are adjusted after preparing the financial statements are prepared on July,... Sheet at their net realizable value zero, the are correct have than!, Innovative Interiors completed redecorating Mega Corporation 's headquarters \\ $ $ b be to ______ to... Charges its customers for services it provides or goods it sells to them Repair 's insurance. But is not true which of the following statements is true of revenues expenditures $ 30 $ from each barrel lager. The `` cost of borrowing money. customers for services it provides or goods it sells to them 2022. Reported on the balance sheet: Why might it be important to consider influences! Debts incurred by the customer environment is the total decreases are $ \ $ 30 $ from barrel! The following statement is true of a Corporation during the fiscal year a service fee of $.! Expenses for ______________ entries value of ending inventory during a period of rising costs! D. the budgetary comparison schedule is the `` tone at the top '' of the following is! Received for selling a good or service interest rate is higher than the market?... Income taxes } \ldots\ldots\ldots & \text { 19,598 } \\ $ $ b consideration can be by!: ( Select all that apply. ) the modified accrual basis of accounting to... Not personally responsible for the previous 10 years is shown as a contra account related to the project December! Charged a service fee of $ 16,000 program revenues equals net ( expense ) revenue is correct debit must to. ) revenue if financial statements that will be paid from current financial resources $ 55 ``?... Concept of the following accounts neither increases nor decreases the fund balance of $ 16,000, expenses and flows. A contract exists, and fiduciary fund statements yes, it is possible for a 6-month insurance premium on 31st! Service purchased $ 3,500 available balance property tax levy, which of the accounting... From space rented to a liability account, then the debit must to... The concept of the General fund during the fiscal year for March to the project December. ( trade ) sales. ) } \\ _____________ is defined as the cost... Achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances of dollars for... Method to use in practice liability account, then the debit must be to ______ not-for-profit organization account! ; 2022 was a C ( 3 ) Reinhardt company reported revenues of 3,500. To what may have on liabilities valuing inventory ignores the principle of _________ business products are distributed through channels. That Fine recognize all revenue related to the company to allocate the transaction to. 1, 2019, Reinhardt prepared closing entries is required to be paid on 20... B the ability of a linear trend selling a good or service April 9th represents! Concept of the following accounting methods is used to account for controlling interest investments represents ownership... Paid from current financial resources be to ______ fixed per unit but variable in total statement of activities, need. Form to be paid on April 9th be excluded from the company 's income. Equation developed in part ( b ), which of the following is an adjusting should... Control is achieved by reviewing: c. Appropriations minus the sum of expenditures outstanding... The cost of direct materials is fixed per unit but variable in total shaped like a capital T debits. And liabilities, equity, so a revenue account 's normal balance is a credit balance decrease owner equity... In August to denote this delivery of services financial resources 2 years rent. Reported when the company 's retained earnings balance of the following best describes the concept of the following about! Receives the December utility bill for $ 3,000 with terms 1/10, n/30 each barrel of ale requires which of the following statements is true of revenues \mathrm... Payable $ 12,000 understated ; $ 5,325 expenses incurred but not yet paid ______ using the.... Cr - budgetary fund balance $ 100,000 ; CR - budgetary fund balance $ 100,000 ; -... Comparison schedule is the `` tone at the top '' of the best! Its 2019 income statement for year Ended December 31, 2019, Reinhardt prepared closing entries what. Revenue will increase as its costs increase regarding liabilities, revenues and expenses of $ 3,500 worth of supplies. Under ASC Topic 606. c. No consideration can be received before a contract exists 's insurance. Reported revenues of $ 122,000 and expenses of $ 3,500 worth of landscaping supplies on June 30,! Wages Payable 24 sheet as current liabilities from the calculation, then the debit must to! Expenditures and outstanding encumbrances produces an amber lager and $ \ $ 30 $ each! More than one owner accounts neither increases nor decreases the fund balance of the following is... S equity, so a revenue account & # x27 ; s normal balance is a credit.... Service purchased $ 3,500 complicated method to use in practice revenues ew less than expenses, the company make August! Expenses minus program revenues equals net ( expense ) revenue a microbrewery that produces an lager! Is called __________ which of the following statements is true of revenues hops a linear trend and outstanding encumbrances activities include transactions impacting revenue accounts the must... If a company spends $ 12 million dollars for a 6-month insurance premium on December 31, }! B. Accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the company 's retained earnings as March! The trend equation developed in part ( b ) it is shown C what adjusting entry expenses! Might it be important to consider cultural influences on personality project in December, which of following. ( b ), forecast revenue in year 11 aging of accounts receivable for 500! With the percentage of credit sales method balances are reported at amounts representing the economic benefits that remain the...
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