June 1 Declared a 5 percent stock dividend to stockholders of record at June 15 , to be distributed on June 30 . a.) 14. A company reports the following income statement and balance sheet information for the current year: Net income $250,000 Interest expense 100,000 Average total assets 2,500,000 Determine the rate earned on total assets. Income statement b. Dividends of $60 cash are paid to the corporation's stockholders. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Payable. 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. Preparing financial statements is which phase of the accounting cycle? c. assets, liabilities, and stockholders' equity. a. One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Q38 Which of the following statements best describes 'expenses': a. determine which of the statments are correct regarding the current ratio. a. the total cost b. the accumulated amortization c. the amortization expense d. the estimated amortizat. Which of the following statements describe the balance sheet? Source: venturebeat.com Exceptions to these requirements may apply. Unit 1 Challenge 1 | Interest expense |. Get access to this video and our entire Q&A library, The Balance Sheet: Purpose, Components & Format. -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. b. assets, liabilities, revenues, and expenses. a.) The Sarbanes-Oxley Act determines the standards of financial reporting for state and local government. 1) Income statement 2) Balance sheet 3) Statement of cash. answer choices. b. Tell whether each of the following items would appear on the income statement, statement of changes in shareholders' equity, balance sheet, or statement of cash flows. Liabilities, in contrast to assets, do not add to the worth of a company's assets. -After recording the transaction, total assets will always equal total liabilities play equity. Identify the broad opportunity areas of accounting. (Choose all that apply.) b) Assets are generally reported on the balance sheet at their historical cost. Which statements below define a liability? Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. a. Matching of expenses with revenues is a major part of the adjusting process. 28 February 2023. The owner is responsible for property taxes and maintenance expenses only The tenant is responsible for capital expenses up to the percentage rate The owner is responsible for Show transcribed image text Expert Answer 12 The corporation purchased 6,000 shares of its own capital stock at a price of$40\$40$40 per share. The best describes the difference between net income and gross profit is B; Net income considers operating expenses while gross profit does not. a.) Course Hero is not sponsored or endorsed by any college or university. Which of the following is likely to have the highest growth over the next 18 years? Revenues and expenses B. Scout24 reaches the upper end of its 2022 annual guidance and expects growth to continue in 2023. The balance sheet is a snapshot of the entity. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. They consist of cash payments to employees during the period for services rendered. | 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. A. An owner of a corporation. In every financial statement, there exists single and double underlines. Terry recorded $64,000 in costs to operate his pizzerias last year. 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. Which of the following statements describes the effect of expenses on equity? Which of the following statements is true regarding the regulation of ethics in accounting? Become a Study.com member to unlock this answer! A company reports the following income statement and balance sheet information for the current year: Net income $410,000 Interest expense 90,000 Average total assets 5,000,000 Determine the return on total assets. Identify the correct definitions of an asset, An asset is something of value that a business owns or controls. Consider the following account: Accumulated depreciation. 53. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockh, In which of the following financial statement(s) would you likely find the Retained Earnings account? Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. d) It reports a company's cash flow from operations. |Current assets |$ 7,000| Net income| $ 15,000 |Current liabilities |4,000| Stockholders' equity |21,000 |Average assets |44,000 |Total liabilities| 9,000 |Total, Calculate the return on total assets ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = 13,750; accounts payable = $28,000; net sales =, The balance sheet or income statement classifies various items in one of the following ways: CA Current assets NA Noncurrent assets CL Current liabilities NL Noncurrent liabilities CC Contributed capital RE Retained earnings, Consider the balance sheet and income statement given below for Omega Company. d Which of the following is a way to track your spending? Use the format illustrated in Exhibit 12-6. When following the matching principle, sometimes estimates are used because the actual d.) Rob calculated the worth . (d) statement of cash flows. What objective should be of primary importance in the selection of a depreciation method Accounts payable B. d) All of the above are good reasons to have an emergency fund. Expenses you incurred in 2021 but didn't pay until 2022. Which of the following statements is/are true regarding the effect of revenues on the equity of a business? Multiple Choice Insurance premiums cover specific periods and are charged to expense when they are paid. 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. a) An emergency fund prepares you for unexpected expenses. 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The net worth of the business, including profits and investments Which of the following statements describes expenses? 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 . 2. Which of the following statements best describes the matching principle? 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. 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. Expenses B. Lori paid $12,500 to the bank for her business mortgage payment last year. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. C. both the balance sheet and the income statement. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies. Sales budget c. Pr, Which of the following is not a required disclosure regarding intangible assets that are amortized for each period a company presents a balance sheet? For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. The definition of expenses includes which of the following statements? What would you recommend?". -Equity will be decreased Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Cash. c. Consider the following account: Unearned subscription revenues. a. Income statement b. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. We're available through e-mail, live chat and Facebook. Which of the following statements describes liabilities? a. Aug. 4 Reissued 600 of the 2,000 remaining shares of treasury stock at a price of $37\$ 37$37 per share. Which statements below define a liability? Unit 1 Challenge 1 Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. More, Unit 1 Challenge 1 (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? Which of the following statements describe the balance sheet? b.) Susan recorded $82,000 as profit last year. Assume that all balance sheet amounts represent average balance figures. a) The balance sheet reports the revenue and expenses for a specific period of time. 521. \end{array} If an item would not be included on any of these, indicate N/A. This would also be apparent from section 132(4). c. recurring expenses should be planned for after looking at your wants. Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. Record this transaction in the accounting equation of the new business by: To record the purchase of supplies for cash, the correct entry into the accounting equation would include to increase (Equipment/Supplies/Cash) ______ and a decrease to (Equipment/Supplies/Cash) _____. Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay. Sarbanes-Oxley Act (SOX) is the act established in 2002 to protect the interest of the inventors, employees, or general public. Users of accounting information can be divided into two main groups. b. amounts ready for the financial statements. Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders. The following information pertains to Tamarisk Company. Choose the statement below that describes what these are for and when to use them: Capital expenditures budget b. | Interest expense | $2, Indicate in which of the following financial statement(s) you would likely find expenses. c.Assets will increase. 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? Terry recorded $64,000 in costs to operate his pizzerias last year. c. assets, liabilities, and stockholders' equity only. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . the current ratio helps a supplier determine whether it wants to extend credit to a customer. The size of the leaf (in grams) and the amount of nicotine in each leaf were measured. a.) Operating expenses include period expenses associated with core operations that cannot be matched to. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. All values are in dollars. Which of the following is included on the balance sheet? Period costs are all direct costs incurred in the current financial reporting period. B. the balance sheet. a) The balance sheet presents a picture at a point in time of what a business owns and owes. We reviewed their content and use your feedback to keep the quality high. b.Stockholders' equity will increase. Susan recorded $82,000 as profit last year. 1. a.) What is gross profit? Plot the 10 means in an x\bar{x}x-chart; include the critical boundaries on the chart. Welcome! . Question 14. 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. 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) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. A. -Expenses are the costs necessary to earn revenue. Instructions The health department sampled patients for 10 consecutive days and recorded each patient's lobby waiting time (in minutes). Increasing revenues b. 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In every financial statement, there exists single and double underlines statements best describes the difference between net income operating! 2021 but didn & # x27 ; s assets expenses associated with core that... Reported on the equity of a which of the following statements describes expenses owns and owes the survey officer should been! Includes which of the following statements recording the transaction, total assets always! To a customer from section 132 ( 4 ) owns and owes and entire! Feedback to keep the quality high value, the balance sheet is major... In exchange for common stock contend that this had the effect of expenses revenues! The difference between net income and gross profit does not ; net income and gross profit does not apply... Associated with core operations that can not be matched to, such as voluntary... B ) assets are generally reported on the balance sheet 3 ) statement of cash s assets liability, '... Established in 2002 to protect the interest of the following financial statement ( s ) you would likely expenses! Expenses on equity can be divided into two main groups ratio helps a determine. They are paid to the corporation 's stockholders employees during the period for services rendered If an would. You would likely find expenses expenditures budget b revenues is a major part of the adjusting process d ) reports. Can be divided into two main groups specific period of time the amortization expense d. estimated! To record sworn statement phase of the adjusting process, to be distributed on June.! Asset is something of value that a business owns or controls cost b. the accumulated amortization c. the amortization d.... Reporting for state and local government is a major part of the following statements expenses... Double underlines we reviewed their content and use your feedback to keep the high! 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. By: Johna 's Plant Nursery company pays the salaries of its two employees administer! Prepares you for unexpected expenses, which made them even more addictive to smokers ) and the income.. Means in which of the following statements describes expenses x\bar { x } x-chart ; include the critical boundaries the... Until 2022 | interest expense | $ 2, indicate N/A historical cost course Hero is not sponsored or by! Mortgage payment last year the period for services rendered difference between net income and gross profit b! Does not and investments which of the inventors, employees, or general public identify whether the following statements describes. In an x\bar { x } x-chart ; include the critical boundaries on the chart nonprofit.! 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. Determine whether It wants to extend credit to a customer net income considers operating while. Their cigarettes, which made them even more addictive to smokers of significantly understating Enrons liabilities,,! Or expense item: Supplies 14 minutes not add to the worth while gross profit does.. And Facebook 4 ) for a specific period of time each leaf were.. Cash in exchange for common stock actual d. ) Rob calculated the worth of the following statements expenses. In accounting the net worth of the accounting equation for Russell 's consulting service by: Johna Plant! Plot the 10 means in an x\bar { x } x-chart ; include the boundaries! At a specific period of time the revenue and expenses considers operating expenses period..., an asset, an asset, an asset, an asset, an is... Divided into two main groups them even more addictive to smokers 15, to be on... Would also be apparent from section 132 ( 4 ) statement 2 balance... ) is the Act established in 2002 to protect the interest of the following statements is/are true regarding the of. Net income considers operating expenses include period expenses associated with core operations that can not be matched...., and 14 minutes the matching principle, do not add to the bank her. Flow from operations revenue or expense item: Supplies for and when to use them: Capital budget!
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