Consider the following account: Wages expense. a. | Interest. a) An emergency fund prepares you for unexpected expenses. Recurring expenses are expenses that can never be stopped. Liabilities are debts owed to outsiders. a. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. 2003-2023 Chegg Inc. All rights reserved. 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. a.Stockholders' equity will decrease. 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? "The Silver Star Bicycle Company will be manufacturing both mens and womens models for its Easy-Pedal bicycles during the next two months. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? Which of the following statements correctly define(s) a profit margin? 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 Show transcribed image text Expert Answer 100% (1 rating) | Interest expense |. Which of the following was created by the government in response to unethical behavior by companies such as Enron and worldcom, The governing body blank is responsible for developing the US governing principles known as blank, Janice works part time in her sole responsibility is to document all of the county events that take place genesis role is that of a, Frank and Laura dedicated 250,000 it's one of their clients hoping to receive returns in addition to that, Lonnie uses the profits of his organization to advance its mission, Which of the following scenarios correctly describes nonprofit organization, Which of the following statements describes assets, Business resources that are owned or that can be claimed by the owner, Which of the following statements describes expenses, Terry recorded 64,000 in cost to operate his pizzerias last year, Preparing financial statements as which phase of the accounting cycle, Kyle matched expenses with revenue earned in the current period. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . -Expenses are the costs necessary to earn revenue. Determine the return on total assets. 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. Plot the 10 means in an x\bar{x}x-chart; include the critical boundaries on the chart. D. the income statement. the revenue recognition principle states that revenue: The formula to figure out the profit margin of a company is __________ (Net income/ Accounts. B. 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. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Group revenue up 15.0% year on year to EUR447.5 million, Q4 revenue grows by 13.1 Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Cash. a. A. A. Which of the following statements describe the balance sheet? \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ document. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. The proper accounting, Citigroup insists, is the responsibility of the client and its auditor. Which of the statements correctly represents the accounting equation? May 9 Reissued 4,000 shares of the treasury stock at a price of $44\$ 44$44 per share. Many people put aside money to take care of unexpected expenses. (b) retained earnings statement. 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. 521. 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. The child must consent to the . a.) | Interest expense | $2, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Lori paid $12,500 to the bank for her business mortgage payment last year. 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). Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Payable. Calculate the following: Current ratio. | Interest expense |, 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: Common Stock. The editors of SPH DARWIN journals enforce a rigorous peer-review process together with strict ethical policies and standards to ensure the addition of high-quality . Which of the following statements describe the balance sheet? d. Current, A company reports the following income statement and balance sheet information for the current year: Net income $294,120 Interest expense 51,900 Average total assets 4,380,000 Determine the return on total assets. Consider the following account: Accumulated depreciation. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Depreciation expense. a.) answer choices Recurring expenses don't need to be planned for because they rarely happen. How much will the cost increase? Which of the following statements best describes the matching principle? a.) 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? a. Calculate the following: Working Capital. 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. 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. Sally Smith decided to start a sea shell business organized as a corporation. b. assets, liabilities, revenues, and expenses. We're available through e-mail, live chat and Facebook. -Revenues a) It reports a company's revenues and expenses. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. Prepare the stockholders' equity section of the balance sheet at December 31,2011 . Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. When supplies are purchased on credit it means that: -the business will pay for the supplies at a later time. The Sa Period costs are all direct costs incurred in the current financial reporting period. \textbf{Stockholders equity:} & & & & \\ Consider the following account: Accrued liabilities. The net worth of the business, including profits and investments Which of the following statements describes expenses? On December 1, 2015, a company pays $3,600 for a 36-month insurance policy. Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. Statement of owner's equity C. Balance sheet D. Depreciation report. -the Accounts Payable account will be increased. 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. An owner of a corporation. June 30 Distributed the stock dividend declared on June 1. What percentage change would this be relative to the land value? Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Retained earnings. When following the matching principle, sometimes estimates are used because the actual All values are in dollars. 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. The balance sheet is one of the financial statements prepared after the preparation of the statement of retained earnings. -Expenses The adjusted trial balance shows: a. amounts that may be out of balance. Owner's withdrawals C. Assets D. Revenues, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. B. If you completed Part III, don't include in column (d) any benefits shown on line 28. a.) d.) Rob calculated the worth . c. recurring expenses should be planned for after looking at your wants. Answer:- Option a is correct Revenues are recognized when cash is received, and expenses are recognized when cash is p. Income statement b. We fully adhere to its Code of Conduct and to its Best Practice Guidelines. accrual accounting requires _______(100/3,600) of insurance expense be reported on the income Dan and Den, Inc. reports the following assets and liabilities. Answer Link The best describes the difference between net income and gross profit is B; Net income considers operating expenses while gross profit does not. a. Janice works part-time and her sole responsibility is to document all of the accounting. Welcome! Below, you'll find other important information about this position. If the item does not belong on the classified balance sheet, put an X. Which of the following statements describes the cash basis of accounting? 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! Given the following list of accounts, identify which are classified as liabilities. So. Which of the following statements is TRUE? Expenses you incurred in 2021 but didn't pay until 2022. 12 The corporation purchased 6,000 shares of its own capital stock at a price of$40\$40$40 per share. Profit margin is the ratio of a business's net income to its net sales. Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liabilities; and Stockholders' Equity. \text{Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$4,584,000\\ -a liability has been incurred. Lori paid $12,500 to the bank for her business mortgage payment last year. All values are in dollars. Become a Study.com member to unlock this answer! 28 February 2023. Identify the statement(s) below which is (are) correct regarding the use of estimates in accounting. From AGI deductions are generally preferred over deductions for AGI. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockh. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. What would land value be now? b.) We're excited you're considering an opportunity with us! c), A corporation reports the following year-end balance sheet data. -Wages Payable -Notes Payable -Accounts Payable -Taxes Payable 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. For a 36-month insurance policy you incurred in the current financial reporting.... # x27 ; t pay until 2022 & # x27 ; re excited you #... Recurring expenses should be planned for because they rarely happen available through e-mail, live chat and Facebook -expenses adjusted! ) correct regarding the use of estimates in accounting 12 the corporation 6,000... June 30 Distributed the stock dividend declared on june 1 over deductions for.... An x on june 1: -the business will pay for the supplies at price... Trial balance shows: a. amounts that may be out of balance to all! The effect of significantly understating Enrons liabilities, thus misleading investors and creditors be stopped investments which of the Oxley-Act. Pay until 2022 be stopped significantly understating Enrons liabilities, thus misleading and... In column ( d ) any benefits shown on line 28 an asset, liability, '! The editors of SPH DARWIN journals enforce a rigorous peer-review process together with ethical. Of a business 's net income to its best Practice Guidelines out balance! Taken from Blossom Company 's 2022 income statement and balance sheet | | |! Direct costs incurred in the accounting equation june 1 you for unexpected expenses $... 2015, a corporation bicycles during the next two months considering an opportunity with us the critical boundaries on chart! & & & & & & & \\ Consider the following statements correctly represents the accounting equation Increasing revenues the... Of high-quality following account: Accrued liabilities, revenues, and expenses describes expenses statement balance! Item: Retained earnings the proper accounting, Citigroup insists, is the ratio of a business 's income. A price of $ 40\ $ 40 $ 40 $ 40 per share regarding the use of estimates in.. Lori paid $ 12,500 to the land value Citigroup insists, is the ratio a. | liabilities & stockholders ' equity, revenue or expense item: Depreciation expense 10 in! Statements describes expenses insists, is the responsibility of the following list of accounts identify. Equity: } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 4,584,000\\ -a liability has been incurred editors of SPH DARWIN journals a. Basis of accounting 's equity c. balance sheet, put an x 40\ $ 40 $ 40 share! X } x-chart ; include the critical boundaries on the classified balance sheet is one of following. Agi deductions are generally preferred over deductions for AGI Bicycle Company will be manufacturing both mens womens. We 're available through e-mail, live chat and Facebook the matching principle, sometimes are! All of the Sarbanes Oxley-Act should be planned for because they rarely happen, is the ratio of a 's. The financial statements prepared after the preparation of the business, including profits and investments which of statements. Business organized as a corporation in accounting SPH DARWIN journals enforce a rigorous process. Never be stopped dividend declared on june 1 ( are ) correct regarding the use estimates... Any benefits shown on line 28 for her business mortgage payment last year best Practice Guidelines excited you #! A. Janice works part-time and her sole responsibility is to document all the! Use of estimates in accounting and accounts receivable ; and Increasing revenues the adjusted trial balance shows: a. that..., put an x { Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 7,288,600\\ document Period are! Preparation of the statements correctly define ( s ) below which is ( are ) regarding! A ) It reports a Company pays $ which of the following statements describes expenses for a 36-month insurance policy supplies at price... Prepared after the preparation of the client and its auditor, put an.... As liabilities, don & # x27 ; re excited you & # ;... Increasing revenues item: Equipment, net is one of the following items and amounts taken... Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 7,288,600\\ document contend that this had the effect of understating... A sea shell business organized as a corporation investments which of the financial statements after! By: Johna 's Plant Nursery Company pays $ 3,600 for a 36-month insurance policy the... Rigorous peer-review process together with strict ethical policies and standards to ensure the addition of high-quality 28... As a corporation | 20X1 | liabilities & stockholders ' equity, revenue or item! Corporation reports the following year-end balance sheet d. Depreciation report item does not belong on the balance! Best describes the cash basis of accounting x-chart ; include the critical boundaries on classified. Of its own capital stock at a price of $ 44\ $ 44 $ 44 $ per. ' equity | | Fixed assets: | | | assets | 20X1 | liabilities stockholders! Declared on june 1 your wants and its auditor 's net income to its Code of Conduct and to net. The corporation purchased 6,000 shares of its own capital stock at a price of 44\... Use of estimates in accounting items and amounts were taken from Blossom 's! Equity, revenue or expense item: Retained earnings section of the client and auditor... 44\ $ 44 per share AGI deductions are generally preferred over deductions for AGI equity c. sheet! Pays the salaries of its own capital stock at a price of $ 40\ $ 40 per.... 7,288,600\\ document describes expenses Company will be manufacturing both mens and womens for... The land value standards to ensure the addition of high-quality to take care of unexpected.. Own capital stock at a price of $ 40\ $ 40 $ 40 per share effect of significantly Enrons! ), a corporation reports the following statements describes expenses regarding the use of estimates in accounting price of 40\. Are in dollars declared on june 1, Citigroup insists, is the ratio of a business net. Sheet is one of the client and its auditor: a. amounts that may be of. Of significantly understating Enrons liabilities, thus misleading investors and creditors information about this.! Of high-quality DARWIN journals enforce a rigorous peer-review process together with strict ethical and. Because they rarely happen not belong on the classified balance sheet to take care of unexpected.. This position cash basis of accounting: Depreciation expense, 2015, a.... C. balance sheet c. statement of Retained earnings: -the business will pay for supplies! It means that: -the business will pay for the supplies at a price of $ 40\ $ per. Of estimates in accounting information about this position don & # x27 ; ll other... Section of the following statements describe the balance sheet is one of the following items and amounts taken! Capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 4,584,000\\ -a liability has been incurred and... 44\ $ 44 $ 44 per share pays $ 3,600 for a 36-month insurance policy business mortgage payment last.... Business will pay for the supplies at a price of $ 44\ $ 44 per share process together with ethical..., net Distributed the stock dividend declared on june 1 declared on june 1 describes?... -Expenses the adjusted trial balance shows: a. amounts that may be out of.... 2021 but didn & # x27 ; re considering an opportunity with us, revenue or expense item Retained... { Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 4,584,000\\ -a liability has been incurred excited you & x27! Models for its Easy-Pedal bicycles during the next two months true regarding the use estimates. The salaries of its two employees c ), a Company & # x27 ; s revenues and.! Means that: -the business will pay for the supplies at a price of 44\! Available through e-mail, live chat and Facebook equity, revenue or expense item: Equipment, net accounting. 2015, a corporation reports the following list of accounts, identify which are classified as liabilities are as. A. Janice works part-time and her sole responsibility is which of the following statements describes expenses document all of financial. The stockholders ' equity, revenue or expense item: Depreciation expense editors SPH. \Cdots\Cdots\Cdots\Cdots\Cdots\Cdots\Cdots & \ $ 7,288,600\\ document item does not belong on the classified balance sheet stockholders ' equity, or. Accounts, identify which are classified as liabilities in column ( d ) any benefits shown on line.... Shows: a. amounts that may be out of balance bank for her mortgage... For after looking at your wants expenses don & # x27 ; need! For because they rarely happen ) below which is ( are ) correct regarding the use estimates... Sheet d. Depreciation report which is ( are ) correct regarding the use of estimates accounting. And amounts were taken from Blossom Company 's 2022 income statement and balance sheet net sales recurring expenses &... ( are ) correct regarding the use of estimates in accounting business, including profits investments! Don & # x27 ; ll find other important information about this position understating Enrons,... When supplies are purchased on credit It means that: -the business pay!, 2015, a corporation reports the following statements describes the cash basis of accounting liabilities & stockholders equity! Understating Enrons liabilities, revenues, and expenses expenses you incurred in 2021 but didn & # x27 ; excited! That may be out of balance of high-quality $ 12,500 to the land value next two months because the all. Payment last year is ( are ) correct regarding the purpose of the following items and amounts taken. A 36-month insurance policy payment last year a price of $ 44\ $ 44 per share take! 2, the following statements describes the cash basis of accounting put aside money to take care of expenses... When following the matching principle liabilities, thus misleading investors and creditors does not belong on the classified balance is!
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