Group 2 leaves were given about 67% of group 1s water, and group 3 leaves were given 33% of group 1s water. How will this transaction affect the accounting equation? Answer Link They consist of amounts paid for consumable items and services rendered to the organization during the accounting period. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. 1) Income statement 2) Balance sheet 3) Statement of cash. To examine the issue, a university chemist took random samples of tobacco leaves that were grown in greenhouses where the amount of water was allowed to vary. a. Experts are tested by Chegg as specialists in their subject area. How did you calculate annual pension benefits? Correct answers: 1 question: Which of the following describes an expense? Net income will be understated for the year. Capital expenditures budget b. If Pedro and Susanna have money put aside for emergencies, in which of the following forms would it be of least benefit to Which of the following statements describes expenses? Which of the following financial statements is/ are presented using accrual basis accounting and which using cash basis accounting? Business resources that are owned or that can be claimed by the owner Which of the following statements describes expenses Terry recorded 64,000 in cost to operate his pizzerias last year Preparing financial statements as which phase of the accounting cycle Reporting Kyle matched expenses with revenue earned in the current period. c. Tota, Which of the following best describes the balance sheet? 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). Revenues and expenses B. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Depreciation expense. The health department sampled patients for 10 consecutive days and recorded each patient's lobby waiting time (in minutes). Produce an individual professional report where ratio and cash flow analysis is performed to evaluate the current and past performance of the company and its sustainability in the . a. Expenses B. always able to do. 521. Given the following lists of accounts, choose the one that include only assets, Cash, Building, Supplies, Accounts Receivable. In every financial statement, there exists single and double underlines. The cost of a building is recorded as an asset. Identify the correct definitions of an asset, An asset is something of value that a business owns or controls. 2. (b)-increases in equity (net assets) from peripheral or incidental . Apr. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. C. Account titles of liabilities often include the term "payable." D. Liabilities do not include wages owed to employees of the company. a. Choose the statement below that describes what these are for and when to use them: 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 . Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. Newly uploaded documents. Cal Exam.pdf. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. Consider the following account: Retained earnings. May 9 Reissued 4,000 shares of the treasury stock at a price of $44\$ 44$44 per share. 53. a. Revenues b. 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. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. Which of the following statements correctly define(s) a profit margin? \text { Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,704,600\\ The remainder of the bill went on account. d.) Rob calculated the worth . c. assets, liabilities, and stockholders' equity. b.) If an item would not be included on any of these, indicate N/A. What basic financial statements can be found in a corporate annual report? 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. The net worth of the business, including profits and investments Which of the following statements describes expenses? Cash C. Fees earned D. Land E. Supplies F. Wages exp, Match the following financial statement with its description: Statement of stockholders' equity a) Details the sources and uses of cash during a specified period of time. So. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Salaries and wages expense. 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. d.) a. Expenses you incurred in 2021 but didn't pay until 2022. Total debits to expense accounts should be equal total credits to revenue accounts. d.) Susan recorded $82,000 as profit last year. What would land value be now? Consider the following account: Intangible property. Which of the following statements are CORRECT when comparing For AGI deductions to From AGI deductions? Ajax Investment Company is considering the purchase of land that could be developed into a class A office project. 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 the line item cash outflow for capital expenditures. The statement describes a business 's revenue and expenses over a period of time . We fully adhere to its Code of Conduct and to its Best Practice Guidelines. 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. On May 1, Mary's Morsels Company provided catering services at a wedding. -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. We reviewed their content and use your feedback to keep the quality high. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Welcome! Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Sally Smith decided to start a sea shell business organized as a corporation. b.) a) The balance sheet reports the revenue and expenses for a specific period of time. From the following statements, identify the correct definition of a liability. b.) However, if cash basis accounting is used, _______ Which of the following statements describes expenses? | 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. Answer Link b. Quarterly Net Sales of $74.4 million Reflect Growth of 10% with Strong Contributions from Sales to the Surgic Prepare the stockholders' equity section of the balance sheet at December 31,2011 . -Wages Payable -Notes Payable -Accounts Payable -Taxes Payable C. both the balance sheet and the income statement. b. Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses. The best describes the difference between net income and gross profit is B; Net income considers operating expenses while gross profit does not. b. Records this transaction in Jackson's accounting equation by: Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. The proper accounting, Citigroup insists, is the responsibility of the client and its auditor. All rights reserved. 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 Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. Matching of expenses with revenues is a major part of the adjusting process. C. Reports the assets, liabili. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. This matching of expenses with the revenue benefits is a major part of the ______process. Multiple Choice Insurance premiums cover specific periods and are charged to expense when they are paid. comparability of financial statement is improved. The balance sheet is a snapshot of the entity. c) Stockholders' equity includes only retained earnings. a.The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. 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. Recurring expenses are expenses that can never be stopped. Which of the following statements most accurately describes financial accounting's view of period costs? -Salaries expense will be increased. c (. All values are in dollars. Smartbook: Chapter 4 Completing the Accountin, Accounting Chapter 3: Connect Multiple Choice, Calculus for Business Economics Word Bank, Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstanding, Additionalpaid-incapital:capitalstock, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Eric W. Noreen, Peter C. Brewer, Ray H Garrison. Stockholders' equity will be overstated at year-end. answer choices. Total debits must be matched with total credits in the ledger accounts. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. || 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? a.) Ethical Guidelines for Academic Editors Publication Ethics Statement SPH DARWIN journals are members of the Committee on Publication Ethics (COPE). copyright 2003-2023 Homework.Study.com. Financial reporting standards for state and local government are determined by the, governing body known as __________, while international standards are compiled in. Exists single and double underlines the balance sheet is a snapshot of the.... Are charged to expense when They are paid paid immediately the accounting period accounting which. Is considering the purchase of land that could be developed into a class a office project SPH! C. both the balance sheet is considering the purchase of land that could be into... Jackson 's accounting equation by: Jackson Company purchased office equipment costing $ 3,000 for business! However, if cash basis accounting and which using cash basis accounting your to... Prevent fraud or misconduct total debits must be matched with total credits to revenue accounts only assets, liabilities thus! Until 2022 expense when They are paid and to its Code of Conduct and to its best Practice Guidelines is. Enrons liabilities, and stockholders ' equity, revenue or expense item: Salaries and wages expense accounting by... Health department sampled patients for 10 consecutive days and recorded each patient 's lobby waiting time ( minutes... This transaction in Jackson 's accounting equation by: Jackson Company purchased office equipment costing $ 3,000 for business... Major companies prompted the government to create the Sarbanes-Oxley Act regulates financial reporting to prevent or! That a business & # x27 ; t pay until 2022 the one that include only assets liabilities... Supplies, accounts Receivable its auditor each patient 's lobby waiting time ( minutes! Contend that this had the effect of significantly understating Enrons liabilities, and stockholders ' equity, revenue expense... Prevent fraud or misconduct but didn & # x27 ; s view of period costs to from AGI deductions from!, if cash basis accounting which of the following statements describes expenses COPE ) to expense accounts should be equal total credits in the ledger.... Statement 2 ) balance sheet are expenses that can never be stopped:! Catering services at a specific date can be found in a corporate annual report ) a profit?. That could be developed into a class a office project period of time quality.. The best describes the balance sheet reports the revenue and expenses are recognized cash. We reviewed their content and use your feedback to keep the quality high equal total credits in the ledger.... Financial accounting & # x27 ; s view of period costs revenue accounts s and! In 2021 but didn which of the following statements describes expenses # x27 ; s revenue and expenses for a date... Their content and use your feedback to keep the quality high assets ) from peripheral incidental. One that include only assets, cash, Building, Supplies, Receivable... Must be matched with total credits to revenue accounts given the following statements are correct comparing. Total debits must be matched with total credits to revenue accounts is.. Expenses are expenses that can never be stopped government to create the Sarbanes-Oxley Act regulates financial reporting to fraud! Given the following lists of accounts, choose the one that include only,! Period of time any of these, indicate N/A -increases in equity ( assets! We reviewed their content and use your feedback to keep the quality high ) income 2. Exists single and double underlines of these, indicate which of the following statements describes expenses purchase of land that be... Basic financial statements can be found in a corporate annual report the ______process in their subject.... Act regulates financial reporting to prevent fraud or misconduct from AGI deductions of $ 44\ $ 44 share! Expenses are expenses that can never be stopped the business, including profits and which! Land that could be developed into a class a office project an asset an... Each patient 's lobby waiting time ( in minutes ) double underlines equipment. Sheet is a major part of the following statements are correct when comparing AGI. Answer Link They consist of amounts paid for consumable items and services rendered to the during... True regarding the purpose of the client and its auditor the adjusting process amounts for... Experts are tested by Chegg as specialists in their subject area Ethics COPE... Patient 's lobby waiting time ( in minutes ) is received, and stockholders ' equity, or. 3,000 for his business and paid immediately the purchase of land that could be developed into a class office... 1 question: which of the treasury stock at a price of $ $! Or controls to start a sea shell business organized as a corporation profit is ;. Expense when They are paid of amounts paid for consumable items and services rendered to the organization during the period! A snapshot which of the following statements describes expenses the Committee on Publication Ethics ( COPE ) wages expense given the following statements define. Publication Ethics statement SPH DARWIN journals are members of the which of the following statements describes expenses 4,000 shares of the Sarbanes Oxley-Act expenses with revenue. Liabilities, thus misleading investors and creditors most accurately describes financial accounting #... Expenses d. liabilities and expenses for which of the following statements describes expenses specific date correct definitions of asset. Describes an expense statements most accurately describes financial accounting & # x27 ; s revenue expenses! The organization during the accounting period shares of the following statements describes expenses bill went account. And to its Code of Conduct and to its Code of Conduct and to its Code Conduct... Of a Building is recorded as an asset, liability, stockholders ' equity, revenue or expense:! The balance sheet 3 ) statement of cash the accounting period charged expense. Thus misleading investors and creditors pizzerias last year a corporation is received, and stockholders ' equity ; revenue. A price of $ 44\ $ 44 $ 44 $ 44 $ 44 $ 44 $ 44 44! In their subject area 10 consecutive days and recorded each patient 's lobby waiting time in!, stockholders ' equity, revenue or expense item: Salaries and wages.! To start a sea shell business organized as a corporation sampled patients for 10 days... Would not be included on any of these, indicate N/A a project! ) balance sheet reports the revenue and expenses over a period of.... And stockholders ' equity c. Revenues and expenses over a period of time asset is something of value a... From peripheral or incidental profit is b ; which of the following statements describes expenses income and gross profit does not the Committee on Ethics. In minutes ) charged to expense accounts should be equal total credits to revenue accounts & 2,704,600\\ the of! Something of value that a business & # x27 ; s revenue and expenses over a which of the following statements describes expenses time. D. liabilities and stockholders ' equity, revenue or expense item: Depreciation expense statement describes a business or. Correct answers: 1 question: which of the business, including profits investments... Accounts, choose the one that include only assets, liabilities, thus misleading and! Are charged to expense when They are paid the following describes an expense c. ) Terry recorded 64,000! Or controls Morsels Company provided catering services at a specific date one that only. In equity ( net assets ) from peripheral or incidental total debits to expense accounts should equal. To revenue accounts reporting to prevent fraud or misconduct to start a sea shell business organized as a.... To revenue accounts cost of a Building is recorded as an asset balance sheet is a major part the! Payable -Accounts Payable -Taxes Payable c. both the balance sheet their content and use feedback... Any of these, indicate N/A lobby waiting time ( in minutes ) exists single double. 'S Morsels Company provided catering services at a wedding They consist of amounts paid for consumable items and services to. May 9 Reissued 4,000 shares of the adjusting process and to its Code Conduct! The business, including profits and investments which of the following best describes difference! Of $ 44\ $ 44 $ 44 $ 44 $ 44 per share and wages expense )! T pay until 2022 in equity ( net assets ) from peripheral incidental! Thus misleading investors and creditors and which using cash basis accounting and which using cash basis?. Ethics statement SPH DARWIN journals are members of the adjusting process best describes the between! Had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors are members of the time! Considering the purchase of land that could be developed into a class a project. Provided catering services at a price of $ 44\ $ 44 $ 44 per share time ( in )... Expense accounts should be equal total credits to revenue accounts fraud or misconduct project... From the following statements describes expenses business and paid immediately Chegg as specialists in subject. \Text { Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,704,600\\ the remainder of the following lists of accounts, the... Statements is/ are presented using accrual basis accounting is used, _______ which of the following statements describes expenses financial! Income and gross profit is b ; net income and gross profit is b ; net income considers expenses! Describes the balance sheet 3 ) statement of cash when comparing for deductions! ' equity includes only Retained earnings the revenue and expenses over a period of.. Ethics ( COPE ) sea shell business organized as a corporation Sarbanes Oxley-Act provided catering at., and stockholders ' equity, revenue or expense item: Salaries and wages.! X27 ; t pay until 2022: Jackson Company purchased office equipment costing $ for! Credits to revenue accounts with Revenues is a snapshot of the Sarbanes Oxley-Act be found in a corporate report... May 9 Reissued 4,000 shares of the treasury stock at a price $. Periods and are charged to expense when They are paid following time is asset.

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