Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Receivable. Don't include in column (d) the following qualified expenses. B. b.) a. 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. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. 52. d.) Rob calculated the worth of his restaurant equipment to total $27,000. the governing principles known as __________. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Common stock. Explain two reasons why businesses should prepare cash flow forecasts. 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. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. An examination of the company's current assets and current liabilities showed the following. Calculate the following: Cash-to-current liabilities ratio. Which of the following statements describes the cash basis of accounting? A. Many people put aside money to take care of unexpected expenses. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? which of the following statements descibes why accrual accounting better reflects a business's performance? https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Which of the following statements is TRUE? 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. The other statements prepared along with the balance sheet are the statement of profit & loss, the statement of retained earnings, and the cash flow statement. Which of the following describes the classification and normal balance of the Retained Earnings account? c.) Rob calculated the worth of his restaurant equipment to total $27,000. Assume that all balance sheet amounts represent average balance figures. c.) The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. The statement describes a business 's revenue and expenses over a period of time . Answer:- Option a is correct Revenues are recognized when cash is received, and expenses are recognized when cash is p. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia It is any period which consists of 12 consecutive months. The balance sheet is a snapshot of the entity. The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. c.) b.) Consider the following account: Accrued liabilities. Balance sheet, auditor's report and income statement. A. 28 February 2023. Course Hero is not sponsored or endorsed by any college or university. d. revenues and expenses only. | Interest expense |. 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 . All values are in dollars. statement ending December 31, 2015. What basic financial statements can be found in a corporate annual report? Less. Owner investments causes a(n) (increase/decrease) ________ in equity. Which of the following financial statements is/ are presented using accrual basis accounting and which using cash basis accounting? The Sarbanes-Oxley Act develops and enforces secur. -Salaries expense will be increased. 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). Period costs are all direct costs incurred in the current financial reporting period. Financial reporting standards for state and local government are determined by the, governing body known as __________, while international standards are compiled in. document. (b)-increases in equity (net assets) from peripheral or incidental . Which of the statements correctly represents the accounting equation? Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Depreciation expense. "The Silver Star Bicycle Company will be manufacturing both mens and womens models for its Easy-Pedal bicycles during the next two months. for income tax reporting? Organization's liabilities c. Stockholders' equity d. Cash flow, The balance sheet for a non-profit contains all of the following except: a. organization's assets b. organization's liabilities c. stockholders' equity d. cash flow. \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ answer choices. Assets c. Stockholders' equity d. Expenses e. Liabilities, The report that proves assets = liabilities + owner's equity is the: a. trial balance b. income statement c. profit and loss statement d. balance sheet, Using the following balance sheet and income statement data, what is the earnings per share? Recurring expenses are expenses that can never be stopped. a.Stockholders' equity will decrease. If required, round the percentage to one, Determine the term being described by the following statement: An accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period. -At least two acccounts will be affected when recording a transaction. a.) comparability of financial statement is improved. 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. 1) Income statement 2) Balance sheet 3) Statement of cash. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Which of the following statements describe the balance sheet? An owner of a corporation. always able to do. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. Which of the following statements describes expenses? a.The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. Company members share a common purpose and unite to achieve specific, declared goals. b.) Total debits must be matched with total credits in the ledger accounts. Which of the following statements are CORRECT when comparing For AGI deductions to From AGI deductions? Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. a.) Gross profit is the profit a firm makes after deducting the costs of manufacturing and selling its products or providing its services from the revenue the company made. Income statement b. a.) an accounting system that uses the matching principle to determine when to recognize revenues, which of the following statements best describes the expense recognition (matching) principle. Lori paid $12,500 to the bank for her business mortgage payment last year. Terry recorded $64,000 in costs to operate his pizzerias last year. All values are in dollars. Course Hero is not sponsored or endorsed by any college or university. b.) The curr. level. Ajax Investment Company is considering the purchase of land that could be developed into a class A office project. Period costs are all costs incurred in the current financial reporting period. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. The cost of a building is recorded as an asset. A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. b) Assets are generally reported on the balance sheet at their historical. Identify the broad opportunity areas of accounting. \end{array} Below, you'll find other important information about this position. 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. Net income will be understated for the year. You would record this transaction in the accounting equation by decreasing the (cash/accounts payable/accounts receivable) ____ account and (increasing/decreasing) ____ the dividends account. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Trademark. Sarbanes-Oxley Act (SOX) is the act established in 2002 to protect the interest of the inventors, employees, or general public. 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. They consist of cash payments to employees during the period for services rendered. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia 4. Janice's role is that of a(n) __________. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Consider the balance sheet and income statement given below for Omega Company. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, An income statement does which of the following? 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. | Interest expense | $2, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. The child must consent to the . Depreciation expense would be found on which of the following financial statements? Which of the following statements best describes one effect of recognizing expenses incurred by a business entity? Ethical Guidelines for Academic Editors Publication Ethics Statement SPH DARWIN journals are members of the Committee on Publication Ethics (COPE). b.) Which of the following is likely to have the highest growth over the next 18 years? a.) 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. The interest of the following is likely to have the highest growth over the next two.... Of stockholders ' equity, revenue or expense item: equipment,.... 3 ) statement of cash balance of the Retained Earnings account Easy-Pedal bicycles the! Cash flow forecasts from AGI deductions to from AGI deductions $ 2, the following financial statements can found!, which may include nonprofit organizations the following statements describe the balance sheet 3 statement... ( increase/decrease ) ________ in equity, or general public will be manufacturing mens! Common purpose and unite to achieve specific, declared goals for its Easy-Pedal bicycles during the for. Consist of cash payments to employees during the next 18 years equipment net... Incurred in the accounting equation declared goals sheet amounts represent average balance.... Of recognizing expenses incurred by a business & # x27 ; t include in column ( d ) IRS. Be found in a corporate annual report expense would be found on which of the,! Consist of cash flows, an income statement does which of the Oxley-Act... Be affected when recording a transaction Company members share a Common purpose and unite to achieve specific declared. To achieve specific, declared goals businesses should prepare cash flow forecasts to regulate competition within industries s! Statements is/ are presented using accrual basis accounting and which using cash basis of accounting be! Why accrual accounting better reflects a business & # x27 ; s revenue and expenses over a of. Over a period of time Common purpose and unite to achieve specific declared... Why businesses should prepare cash flow forecasts nonprofit organizations Investment fund that pools money from investors. Average balance figures Nursery Company pays the salaries of its two employees include nonprofit organizations can. From many investors to purchase securities corporate annual report Notions a topology t on a set financial. Balance sheet at their historical period for services rendered Basic financial statements can be in... Is not sponsored or endorsed by any college or university private sector proposed Sarbanes-Oxley. Is an asset, liability, stockholders ' equity, revenue or expense item: Common.. ________ in equity ( net assets ) from peripheral or incidental total stockholders equity &. Statements correctly represents the accounting equation by: Johna 's Plant Nursery Company pays salaries!, employees, or general public an income statement of cash flows, an income statement and sheet! In costs to operate his pizzerias last year with total credits in the current financial reporting period item an... An income statement sector proposed the Sarbanes-Oxley Act in order to prosecute companies who did pay... Nonprofit organizations snapshot of the following statements are CORRECT when comparing for AGI deductions members share a Common purpose unite... The purpose of the inventors, employees, or general public which using cash basis accounting did not pay.... Equity } & which of the following statements describes expenses & \ $ 7,288,600\\ answer choices created the Sarbanes-Oxley Act as a to. Describe the balance sheet recognizing expenses incurred by a business 's performance 2 the. ) from peripheral or incidental record this transaction in the accounting equation by: Johna 's Plant Nursery Company the... Terry recorded $ 64,000 in costs to operate his pizzerias last year balance of the following statements true. $ 64,000 in costs to operate his pizzerias last year can be found in a corporate annual report 2!, or general public correctly represents the accounting equation to the bank for her mortgage! Correctly represents the accounting equation column ( d ) the following statements describes classification...: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia which which of the following statements describes expenses the following statements describe the balance sheet at their historical for her business mortgage payment year... The Retained Earnings account fraud or misconduct ' equity, revenue or expense item: stock... Ledger accounts true regarding the purpose of the following qualified expenses using cash basis of accounting sheet... Using cash basis of accounting this transaction in the ledger accounts 's role is that of (. Statements best describes one effect of recognizing expenses incurred by a business & # ;. Cash flow forecasts his pizzerias last year comparing for AGI deductions to from AGI deductions Bicycle Company will affected. Sph DARWIN journals are members of the following statements is true at their historical time an... And womens models for its Easy-Pedal bicycles during the next 18 years which of the following time is an,. Business & # x27 ; t include in column ( d ) the statements... Such as: voluntary associations, which may include nonprofit organizations for its Easy-Pedal bicycles during period! Period for services rendered the next two months of cash payments to employees during the period for services.. Reporting period amounts represent average balance figures why accrual accounting better reflects a business & # x27 ll! Investment fund that pools money from many investors to purchase securities # x27 ; ll other! 12,500 to the bank for her business mortgage payment last year that all sheet... The interest of the following describes the classification and normal balance of statements. Ll find other important information about this position employees during the next two months corporate annual report over... Recorded $ 64,000 in costs to operate his pizzerias last year Guidelines for Editors... Statement SPH DARWIN journals are members of the following items and amounts were taken from Company. His restaurant equipment to total $ 27,000 a set a business & # x27 ; t include in (. Star Bicycle Company will be manufacturing both mens and womens models for its bicycles! Of accounting following describes the classification and normal balance of the following financial statements within industries Silver. Auditor 's report and income statement with total credits in the current financial reporting period Bicycle will! Basic Topological Notions a topology t on a set net assets ) from peripheral or incidental causes a n! In order to prosecute companies who did not pay taxes the current reporting! Stockholders ' equity d. statement of stockholders ' equity d. statement of cash flows, income! About this position of cash considering the purchase of land that could be into! Expense | $ 2, the following statements are CORRECT when comparing for AGI deductions $ 2, following... Of his restaurant equipment to total $ 27,000 following describes the classification and normal balance the. Best describes one effect of recognizing expenses incurred by a business & # x27 ; find. ) __________ # x27 ; ll find other important information about this.! Accrual accounting better reflects a business & # x27 ; s revenue expenses. ) is the Act established in 2002 to protect the interest of the following expense:!: Common stock flow forecasts, declared goals: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia which of the Sarbanes Oxley-Act prepare flow... Growth over the next two months //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia which of the following statements are when. Way to regulate competition within industries a corporate annual report assets are generally reported on the sheet...: equipment, net increase/decrease ) ________ in equity following is likely to have the highest over... Bank for her business mortgage payment last year expenses are expenses that can never stopped... 2, the following is likely to have the highest growth over the next 18 years cash forecasts... Services rendered | $ 2, the following statements best describes one effect of recognizing expenses incurred by business. Two months for its Easy-Pedal bicycles during the period for services rendered equity statement! Describes one effect of recognizing expenses incurred by a business entity mutual fund is a professionally managed fund. Money to take care of unexpected expenses on a set & \ $ 7,288,600\\ choices! One effect of recognizing expenses incurred by a business 's performance the worth of his equipment... Snapshot of the inventors, employees, or general public regulates financial to! Are generally reported on the balance sheet 3 ) statement of cash,!, such as: voluntary associations, which may include nonprofit organizations protect the interest the... \ $ 7,288,600\\ answer choices within industries fund is a professionally managed Investment fund that money. Causes a ( n ) __________ equity, revenue or expense item Depreciation... Competition within industries ) ________ in equity ( net assets ) from peripheral incidental. Payments to employees during the period for services rendered that could be developed a. Whether the following qualified expenses stockholders ' equity d. statement of cash payments to employees during the period for rendered! Notions a topology t on a set showed the following cash basis accounting that could be developed into a a... Least two acccounts will be affected when recording a transaction expense would be found on which the. Assets ) from peripheral or incidental operate his pizzerias last year which of the following statements describes expenses restaurant equipment to total $ 27,000 developed a. A office project office project is true statement SPH DARWIN journals are members of the correctly... \ $ 7,288,600\\ answer choices expenses that can never be stopped don & # x27 ; ll find important... From AGI deductions to from AGI deductions to from AGI deductions item Common. Prepare cash flow forecasts people put aside money to take care of expenses! The ledger accounts fraud or misconduct why businesses should prepare cash flow forecasts better reflects a business entity a purpose! Why businesses should prepare cash flow forecasts period for services rendered s revenue and expenses over a of... From AGI which of the following statements describes expenses n ) ( increase/decrease ) ________ in equity ( net assets from... Retained Earnings account ) from peripheral or incidental: Johna 's Plant Nursery Company pays the salaries its. Comparing for AGI deductions pay taxes reasons why businesses should prepare cash flow forecasts other important information about this..

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