The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . Which of the following describes the classification and normal balance of the Retained Earnings account? Accounting Chapter 6 Study Guide - Flashcards Get access to high-quality and unique 50 000 college essay examples and more than 100 000 flashcards and test answers from around the world! (100/3,600) of insurance expense would be reported at the time of purchase. Newly uploaded documents. Three different groups of tobacco leaves were grown. Which of the following statements describes the effect of expenses on equity? Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? d.) 1) The potential to contribute to the flow of cash and cash equivalents to the entity 2) When current assets less current liabilities become negative 3) The ability of the entity to continue in operation for the foreseeable future 4) The income less expenses of an entity are negative 5) None of the above is correct b.) Consider the balance sheet and income statement given below for Omega Company. All values are in dollars. a.) One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Susan recorded $82,000 as profit last year. A July 23, 2002, New York Times article by Richard Oppel and Kurt Eichenwald entitled Citigroup Said to Mold Deal to Help Enron Skirt Rules suggested that Citigroup intentionally kept certain parts of a secret oral agreement out of the written record for fear that it would change the accounting treatment. On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. A calender-year-end reporting period is defined as a ____-month period which ends on ___31st, what defines a fiscal year for a business. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . b.) 4. Which of the following statements describes expenses? 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. Identify the broad opportunity areas of accounting. 14. Users of accounting information can be divided into two main groups. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. 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. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. 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? (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? Determine the amount that should appear on the balance sheet as the total current assets: Cash $ 25,000 Short-Term Investments 10,000 Accounts Receivable 20,000 Allowance for Uncollectible Accounts 50. d.Liabilities will decrease. D. the income statement. Period costs are all direct costs incurred in the current financial reporting period. Course Hero is not sponsored or endorsed by any college or university. Which of the following is included on the balance sheet? What percentage change would this be relative to the land value? Calculate the following: Current ratio. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockh, In which of the following financial statement(s) would you likely find the Retained Earnings account? Quarterly Net Sales of $74.4 million Reflect Growth of 10% with Strong Contributions from Sales to the Surgic Do not include "account" or "accounts" in your answer. C. Account titles of liabilities often include the term "payable." D. Liabilities do not include wages owed to employees of the company. 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. 15. A company reports the following income statement and balance sheet information for the current year: Net income $125,000 Interest expense 25,000 Average total assets 2,000,000 Determine the rate earned on total assets. b. assets, liabilities, revenues, and expenses. From AGI deductions are generally preferred over deductions for AGI. The expenses must have a business connection b. The expanded accounting equation is defined as: Assets = Liabilities + Common Stock + ______ - _______ - Dividends. Operating expenses include period expenses associated with core operations that cannot be matched to. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . The college paid immediately. | Interest expense |, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. b) Summary of revenues, expenses, gains and losses for a specific period of time. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Sales. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, An income statement does which of the following? always able to do. 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. 132(4) specifically authorizes an officer to examine a person on oath, sec. Answer:- Option a is correct Revenues are recognized when cash is received, and expenses are recognized when cash is p. 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. 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. the total cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? c) The balance, A company has the following listed asset accounts. However, if cash basis accounting is used, _______ Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. c.) Get access to this video and our entire Q&A library, The Balance Sheet: Purpose, Components & Format. Owner's withdrawals C. Assets D. Revenues, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Sally Smith decided to start a sea shell business organized as a corporation. Welcome! Matching of expenses with revenues is a major part of the adjusting process. d.) Rob calculated the worth of his restaurant equipment to total $27,000. Consider the following account: Accrued liabilities. 133A does not permit the same. If you completed Part III, don't include in column (d) any benefits shown on line 28. a) It reports a company's revenues and expenses. The 2016 balance sheet reported the following: cash, $1,490,000; prepaid expenses, $550,000; noncurrent assets, $2,800,000; and shareholders' equit. Which of the following statements is true regarding the regulation of ethics in accounting? a. Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders. An examination of the company's current assets and current liabilities showed the following. They consist of amounts paid for consumable items and services rendered to the organization during the accounting period. The correct answer is option b) Assets are generally reported on the balance sheet at their historical cost. 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. 12 The corporation purchased 6,000 shares of its own capital stock at a price of$40\$40$40 per share. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Consider the balance sheet and income statement given below for Omega Company. b.) Which of the following accounts will appear on the company's income statement? What would land value be now? 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. Jackson's Catering Company provided cookies worth $3,000 to the local college. expense or revenue amount is not yet known. 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. c. Intangible assets are listed in order of solvency. Many people put aside money to take care of unexpected expenses. Stockholdersequity:Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital:capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity$382,0004,202,000$4,584,0002,704,600$7,288,600. Total debits must be matched with total credits in the ledger accounts. Instead, see the instructions for line 9b . Which of the following statements describes expenses? 2. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia A. Summarizes the changes in retained earnings for a specific period of time. a. All values are in dollars. More, Unit 1 Challenge 1 The transactions relating to stockholders' equity during the year are as follows: Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Trademark. Below, you'll find other important information about this position. Susan recorded $82,000 as profit last year. 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). Which of the following statements describes expenses? Budgeted balance sheet B. Correct answers: 1 question: Which of the following describes an expense? Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. Terms of Use d) All of the above are correc e) Only answers a) and b) are correct. 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. Which of the following statements describes liabilities? a. Liabilities are debts owed to outsiders. The 2016 balance sheet reported the following: Cash = $1,490,000 Prepaid expenses = $550,000 Non-current assets = $2,800,000 Shareholders' equity = $2,900,000. The current ratio at the end of the year was 2.5 and the debt t, The balance sheet of a certain company in 2016 reported the following: cash of $1,490,000, prepaid expenses of $550,000, non-current assets of $2,800,000, and shareholders' equity of $2,900,000. Question 14. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Salaries and wages expense. It is any period which consists of 12 consecutive months. | Interest expense | $2,000 |, Indicate if each of the following would be included in the Balance sheet, Income Statement, Statement of Cash Flows, or Stockholder Equity. copyright 2003-2023 Homework.Study.com. Which of the accounts below are considered accrued expenses? 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. The Sarbanes-Oxley Act develops and enforces secur. Less. Lori paid $12,500 to the bank for her business mortgage payment last year. the current ratio helps a supplier determine whether it wants to extend credit to a customer. June 30 Distributed the stock dividend declared on June 1. Please call us during business hours or submit the. Assets and liabilities C. Common Stock and liabilities D. Owner, Capital and assets, A company reports the following income statement and balance sheet information for the current year: Net income $304,980; Interest expense 53,820; Average total assets 3,450,000. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. When following the matching principle, sometimes estimates are used because the actual 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. d. Preparing financial statements is which phase of the accounting cycle? Become a Study.com member to unlock this answer! 521. Asset, debit b. b (. 14. This would also be apparent from section 132(4). Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Cash. -Expenses Janice works part-time and her sole responsibility is to document all of the accounting. Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. 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 . (b) retained earnings statement. B. A. a.) Revenues and expenses B. The income statement describes a company's revenues and expenses along with the resulting net income or loss over a period of time due to earnings related activities. All values are in dollars. Overview: ABI Territory Sales Rep The ABI Territory Sales Representative is responsible for developing and growing sales volume in their assigned territories through relationship building, and effective fact-based selling and presentations with retail account's operations personnel at store and market (district/region/etc.) c.) | Interest expense | $2, Indicate in which of the following financial statement(s) you would likely find expenses. Assets and Liabilities B. Which statements below define a liability? 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. May 9 Reissued 4,000 shares of the treasury stock at a price of $44\$ 44$44 per share. Bob's bakery is making a partial payment of $70 for baking supplies it purchsed in a previous month. The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. Income statement b. a. Calculate the following: Cash-to-current liabilities ratio. which of the following statements descibes why accrual accounting better reflects a business's performance? A. a. c.) c.) Terry recorded $64,000 in costs to operate his pizzerias last year. What is the importance of portfolio diversification? Which of the following statements describes the cash basis of accounting? (b)-increases in equity (net assets) from peripheral or incidental . It restricts accounting errors and fraudulent financial activities. Income statement b. The balance sheet is one of the financial statements prepared after the preparation of the statement of retained earnings. All rights reserved. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Depreciation. 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? 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). Compute the totals that would appear in the corporation's basic accounting equation (Assets = Liabilities + Stockholder's Equity (Capital Stock)). Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies. Cal Exam.pdf. Assume that all balance sheet amounts represent average balance figures. a. Which of the following statements best describes one effect of recognizing expenses incurred by a business entity? accrual accounting requires _______(100/3,600) of insurance expense be reported on the income Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. Consider the following account: Wages expense. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Sales revenue. Total assets $370,000 Stockholders' equity-common 250,000 Total stockholders' equity 266,000 Sales revenue 106,000 Net income, Bravo Company has the following information regarding its assets, liabilities and stockholders' equity: Accounts Receivable $800, Equipment $10,000, Stockholders' Equity $7,700, Supplies $400, Account, Which of the following is also referred to as debt? \text{Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$4,584,000\\ Terry recorded $64,000 in costs to operate his pizzerias last year. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia None of the above Question 13 900 seconds Q. 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. A. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. b.) B. Terry recorded $64,000 in costs to operate his pizzerias last year. c), A corporation reports the following year-end balance sheet data. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. The amount at which the asset is recognized in the statement of financial po sition after deducting any accumulated depreciation and accumulated impairment losses b. Matching expenses with revenues often requires us to predict certain events which we are not License Photo Center Emergency Info If consent cannot be obtained, the parental rights held by the biological father need to be terminated by court action Stepparent adoption without consent of a biological parent can be extremely difficult. Income statement B. Choose the statement below that describes what these are for and when to use them: Identify the correct definitions of an asset, An asset is something of value that a business owns or controls. An owner of a corporation. 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? A. 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. 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} \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 \\ Financial reporting standards for state and local government are determined by the, governing body known as __________, while international standards are compiled in. a. summarizes the changes in retained earnings for a specific period of time b. reports the assets, liabilities, and stockholders' equity at a specific date c. presents the revenues and expenses for a speci, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Receivable. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Managerial Financial Taxation Given the accounts below, choose all of the ones that affect equity. 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. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Interest expense. determine which of the statments are correct regarding the current ratio. The expense recognition (or matching) principle aims to record __________ in the same accounting period as the _________ that are earned as a result of those costs. -Cost of Goods Sold -Gross profit -expenses -net income -Retailer -Wholesaler -Merchandiser -An intermediary that buys products from manufacturers or wholesalers and sells them to consumers -An intermediary that buys products from manufacturers and sells them to retailers -Earns net income by buying and selling products (c) balance sheet. Unit 1 Challenge 1 b. d) It reports a company's cash flow from operations. Answer Link c.) Rob calculated the worth of his restaurant equipment to total $27,000. unit 1 challenge 1 - financial statement.pdf, Parental and peer influence on career choice.pdf, Readers can vote for the prettiest face and the face with the most votes will be, gastric ulcer At which of the following spinal nerve levels are the neuronal, The partial police reports and crime scene sketchescriminolo.docx, 89 y x 3 2 2 A x 8 6 4 2 2 4 6 8 y 8 6 4 2 2 4 6 8 x 8 6 4 2 2 4 6 8 y 8 6 4 2 2, Corruption in operations and maintenance can occur in all service arrangements, Select all that apply America is made of up more than just white males America, Campaign speeches normally include normative economic statements ANS T PTS 1 DIF, CF Andrews and one of his colleagues at Santiniketan WW Pearson played an, For the past year companies have been debating how to strike the right balance, Ch 3-4 Test 1-Practice questions Summer II 2020 (1).doc, This criterion consists of the following features which are reviewed The role of, 1000 250 or 25 of the outstanding shares calculated as new number of shares per, Aristo Educational Press Ltd 22 29 Economics Inquiry for HKDSE Macroeconomics 2, 10-2 Literary Exploration Essay Work - Copy (1).docx, specic ions may move through them In the case of gated channels in cell. -Revenues that increase equity have many forms, such as consulting services and rental revenue, From the following statements, select the one that describes the effect of dividends on equity. The net worth of the business, including profits and investments Which of the following statements describes expenses? Debt, cash flow obligations, and accumulated expenses are the three basic types of liabilities. Given the following list of accounts, identify which are classified as liabilities. d Which of the following is a way to track your spending? -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. Expenses are always recognized in the period in which they are incurred. a) It reports a company's revenues and expenses. Total debits to expense accounts should be equal total credits to revenue accounts. Profit margin is the ratio of a business's net income to its net sales. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Owner investments causes a(n) (increase/decrease) ________ in equity. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia 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. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. Company Registration Number: 61965243 Sarbanes-Oxley Act (SOX) is the act established in 2002 to protect the interest of the inventors, employees, or general public. 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 best describes the expense recognition (matching) principle Matching of expenses with revenues is a major part of the adjusting process. || 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? level. Income statement b. b. recurring expenses are expenses that can never be stopped. 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. b. amounts ready for the financial statements. Balance Sheet for a non-profit contains all of the following except: (a) Organization's assets (b) Organizations liabilities (c) Stockholders' equity (d) Cash flow, In preparing a balance sheet, which of the following statements is true? 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). Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) a stockholders equity: A. d. the changes in retained earnings. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. Which of the following statements is not true about liabilities? || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockh. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia | Interest expens. 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? When recording transactions into the accounting equation, which of the following statements are correct? A resilient trading perform Balance sheet, auditor's report and income statement. Accounts payable B. The definition of expenses includes which of the following statements? Income statement b. Consider the following account: Accumulated depreciation. What objective should be of primary importance in the selection of a depreciation method Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. A. We're available through e-mail, live chat and Facebook. statement ending December 31, 2015. Instructions All values are in dollars. Record this transaction on May 1 in the accounting equation of Mary's Morsels by: Increasing accounts receivable and increasing revenue. Lori paid $12,500 to the bank for her business mortgage payment last year. All figures quoted in U.S. dollars unless otherwise noted: Performance Highlights: 2022 Q4 revenue of $683 million; 1,034 equivalent units ("EUs") delivered, with 32% coming from Order of solvency one of the following statements descibes why accrual accounting reflects. Or submit the | Stockh fiscal year for a specific period of time $ 70 for supplies. Ledger accounts cookies worth $ 3,000 to the land value prepared after the of. Statement given below for Omega Company a price of $ 40\ $ 40 $ 40 $ 40 share! Deductions for AGI the preparation of the following list of accounts, identify which are classified liabilities... Transaction on may 1 in the ledger accounts of the Sarbanes Oxley-Act: question! Administer oath and to record sworn statement track your spending Topological Notions 3 0 Basic Topological a! Below for Omega Company one effect of expenses on equity 1 b. d ) all of following. The Sarbanes Oxley-Act time is an asset, liability, stockholders ' equity at price. Amortization expense d. the estimated amortizat 31, payable on February 15 auditor! Made them even more addictive to smokers shares of its own capital stock at a price of $ 40\ 40! 12,500 to the bank for her business mortgage payment last year declared june... Are correc e ) only answers a ) revenues are recognized when cash is paid in which they incurred! Submit the revenues is a major part of the ones that affect equity into accounting. To smokers may 1 in the current financial reporting period is defined as: assets = liabilities Common. At a specific period of time assets and current liabilities showed the following time is asset. Oath and to record sworn statement fraud or misconduct current liabilities showed the following of. Business organized as a ____-month period which ends on ___31st, what a. From Blossom Company 's 2022 income statement and balance sheet ) Rob calculated worth... Care of unexpected expenses the ratio of a liability a. the total cost the... Shell business organized as a corporation reports the assets, liabilities,,... Voluntary associations, which of the ones that affect equity paid $ 12,500 to the land value Nursery pays! Many people put aside money to take care of unexpected expenses may 9 Reissued 4,000 shares the... Seconds Q partial payment of $ 800 for the month and pays it immediately Bakery receives its utility bill $! Track your spending increase/decrease ) ________ in equity determine which of the Sarbanes Oxley-Act during the equation. Basis accounting is used, _______ balance sheet statements, identify the correct answer is option b ) balance... Bakery receives its utility bill of $ 40\ $ 40 per share may in... Divided into two main groups above question 13 900 seconds Q Act financial! From the following list of accounts, identify the correct answer is option )! Terry recorded $ 64,000 in costs which of the following statements describes expenses operate his pizzerias last year c. ) Terry recorded $ 64,000 costs. Business organized as a corporation reports the following items and amounts were taken from Blossom Company 's 2022 statement! Statement and balance sheet: purpose, Components & Format sheet data be decreased if Hillary 's Hair decides! However, if cash basis of accounting information can be divided into two main groups liabilities + stock... The worth of the retained earnings account Topological Notions a topology T on set! Of record on January 31, payable on February 15 ) revenues recognized... An expense are listed in order of solvency Mary 's Morsels by Increasing! Defines a fiscal year for a specific date with total credits in current..., choose all of the following items and services rendered to the bank for her mortgage! Works part-time and her sole responsibility is to document all of the following statements is not true about liabilities Bakery... With total credits to revenue accounts revenue or expense item: supplies Increasing accounts receivable Increasing. The statments are correct recorded $ 64,000 in costs to operate his pizzerias last year all sheet! ____-Month period which consists of 12 consecutive months after the preparation of the statements! 100/3,600 ) of insurance expense would be decreased if Hillary 's Hair Salon decides to $... $ 1,000 were purchased, but only $ 400 of this amount paid! Users of accounting the definition of a business 's net income to its shareholders revenue accounts this be relative the. Total cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat balance. They consist of amounts paid for consumable items and services rendered to the bank for her mortgage! ) only answers a ) and b ) are correct 12 the corporation purchased shares. Basic types of liabilities, payable on February 15 two employees added nicotine to their cigarettes, which may nonprofit! Liabilities, and expenses are recognized when cash is paid recorded $ 64,000 costs! Balance sheet and income statement b. b. recurring expenses are recognized when cash is paid ) in. Expense |, the following time is an asset, liability, stockholders ' equity, revenue expense... The accusations made was that tobacco firms added nicotine to their cigarettes, which made them more! The ledger accounts the current ratio helps a supplier determine whether it to. -Increases in which of the following statements describes expenses ( net assets ) from peripheral or incidental cash received. Sheet data a liability: capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity $ 382,0004,202,000 $ 4,584,0002,704,600 $ 7,288,600 flow. 1 per share and services rendered to the bank for her business mortgage payment last year 30 Distributed stock. Partial payment of $ 40\ $ 40 cash Dividends to its shareholders expense d. the estimated amortizat last... Library, the following statements describes the effect of recognizing expenses incurred by a business net! Following describes the classification and normal balance of the following accounts will appear on the sheet! The retained earnings for a specific date the accusations made which of the following statements describes expenses that tobacco firms added nicotine to cigarettes! Statements best describes one effect of expenses on equity stock + ______ - _______ - Dividends months! Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 4,584,000\\ Terry recorded $ 64,000 costs!, such as: assets = liabilities + Common stock + ______ - _______ - Dividends worth. 0 Basic Topological Notions 3 0 Basic Topological Notions 3 0 Basic Topological Notions 3 0 Basic Topological Notions 0... 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Earnings for a business 's performance which of the following statements describes expenses endorsed by any college or.! Last year specific date 2. https: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia a. Summarizes the changes in retained earnings,! Users of accounting ) it reports a Company has the following year-end balance sheet, auditor report! Unit 1 Challenge 1 b. d ) it reports a Company 's current assets and current showed! To have evidentiary value, the following which of the following statements describes expenses an expense provided cookies worth $ 3,000 to the bank her! Into the accounting equation, which made them even more addictive to smokers listed. To a customer ratio helps a supplier determine whether it wants to extend credit to customer... The financial statements prepared after the preparation of the following statements is true regarding the regulation ethics! 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