which of the following statements describes expenses

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A. Summarizes the changes in retained earnings for a specific period of time. Many people put aside money to take care of unexpected expenses. C. Reports the assets, liabili. These means were plotted in an x\bar{x}x-chart to monitor the waiting time process. Group 1 leaves were grown with about an average seasons rainfall. 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. Given the statements below, choose the most accurate definition of dividends. c. assets, liabilities, and stockholders' equity. June 30 Distributed the stock dividend declared on June 1. Lori paid $12,500 to the bank for her business mortgage payment last year. c.) copyright 2003-2023 Homework.Study.com. c. recurring expenses should be planned for after looking at your wants. Which of the following statements is/are true regarding the effect of revenues on the equity of a business? Balance sheet, income statement, statement of shareholders' equity, and statement of cash flows. Which of the following statements describes expenses? Which of the following statements describes the proper matching of revenue and expenses? Identify the statement(s) below which is (are) correct regarding the use of estimates in accounting. Kyles completing the blank phase of the accounting cycle, If liabilities are debited which of the following situation occurred, Expected type of balance for specific account classification, Expenses have a natural blank balance and increase with a debit, Blank decreases with credit and have a natural debit balance, Chapter 1, 2,3, 10, and 11 National Government, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Century 21 Accounting: Multicolumn Journal. Asset, debit b. Answer Link Group 2 leaves were given about 67% of group 1s water, and group 3 leaves were given 33% of group 1s water. b. amounts ready for the financial statements. a) An emergency fund prepares you for unexpected expenses. Course Hero is not sponsored or endorsed by any college or university. A. a.) Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, At the beginning of the year, a company's balance sheet reported the following balances: Total Assets $225,000 Total Liabilities $100,000 Common Stock $25,000 Retained Earnings $100,000 During the year, the company reported revenues of $46,000 and expense. 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. Plot the 10 means in an x\bar{x}x-chart; include the critical boundaries on the chart. Statement of owner's equity C. Balance sheet D. Depreciation report. c.) Records this transaction in Jackson's accounting equation by: Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. A balance sheet has the _______ sections. c) Stockholders' equity includes only retained earnings. A company reports the following income statement and balance sheet information for the current year: Net income $165,530 Interest expense $14,398 Average total assets $2,142,000 Determine the rate earned on total assets. Feb. 15 Paid the cash dividend declared on January 3. a) The balance sheet reports the revenue and expenses for a specific period of time. It restricts accounting errors and fraudulent financial activities. | Interest expense | $2, Indicate in which of the following financial statement(s) you would likely find expenses. a) It reports a company's revenues and expenses. 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. Which of the following is included on the balance sheet? It also expects rents to grow at 3 percent indefinitely and believes that Ajax should earn a 12 percent return (r)(r)(r) on investment. (b)-increases in equity (net assets) from peripheral or incidental . Net income will be understated for the year. c.) 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. 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) 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. Capital expenditures budget b. 133A does not permit the same. When following the matching principle, sometimes estimates are used because the actual Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. 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. 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. 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. b.) If required, round the percentage to o, Which of the following financial statements shows the amounts distributed to the owner? The financial statement that reports assets, liabilities, and stockholders' equity is the: (a) income statement. Which of the following statements is TRUE? All values are in dollars. -At least two acccounts will be affected when recording a transaction. Susan recorded $82,000 as profit last year. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Sales. Which of the following statements describes expenses? The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Createyouraccount. An owner of a corporation. 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. Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. d.) Rob calculated the worth of his restaurant equipment to total $27,000. 15. 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: Prepaid Rent. Recurring expenses should be planned for after looking at your wants. \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 \\ Determine the return on total assets. -Equity will be decreased b.) -Revenues \text{Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$4,584,000\\ a. From the following statements, identify the correct definition of a liability. (Choose all that apply.) Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Select one: a. Which of the following does not describe the balance sheet? Welcome! 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. The cost (or an amount substituted for cost) of the asset less its residual value b. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. the governing principles known as __________. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Common stock. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Company members share a common purpose and unite to achieve specific, declared goals. Susan recorded $82,000 as profit last year. 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. Consider the following account: Intangible property. | 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. 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. Become a Study.com member to unlock this answer! Income statement b. All other trademarks and copyrights are the property of their respective owners. The cost of a building is recorded as an asset. When recording transactions into the accounting equation, which of the following statements are correct? Balance sheet C. Income statement D. Statement of owner's equity, Current asset section of the GTD balance sheet consists of cash, accounts receivable, and prepaid expenses. Cal Exam.pdf. 2. Which of the following financial statements is/ are presented using accrual basis accounting and which using cash basis accounting? d) All of the above are good reasons to have an emergency fund. 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. || 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? Sarbanes-Oxley Act (SOX) is the act established in 2002 to protect the interest of the inventors, employees, or general public. Choose the formula below that is used to calculate the current ratio of a business. A. Scout24 reaches the upper end of its 2022 annual guidance and expects growth to continue in 2023. Terms of Use -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. D. the income statement. -A creditor's claims against the assets of a business. If an item would not be included on any of these, indicate N/A. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. 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) _____. a. expense or revenue amount is not yet known. -a liability has been incurred. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. Place the steps in the adjusting process in the correct order in which they would be performed. | Interest expense | $2,0. 28 February 2023. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. 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. The transactions relating to stockholders' equity during the year are as follows: 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. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital') and open-ended investment company (OEIC) in . Managerial Financial Taxation a. Answer Link a. Terry recorded $64,000 in costs to operate his pizzerias last year. What basic financial statements can be found in a corporate annual report? All rights reserved. -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 B. Which of the statements correctly represents the accounting equation? Income statement b. c.) C. Which of the following statements describes liabilities? c (. 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. The bride is billed $4,000 and will pay during the following month. Identify the correct definitions of an asset, An asset is something of value that a business owns or controls. Apr. Terry recorded $64,000 in costs to operate his pizzerias last year. This matching of expenses with the revenue benefits is a major part of the ______process. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Salaries and wages expense. Bob's bakery is making a partial payment of $70 for baking supplies it purchsed in a previous month. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . If the item does not belong on the classified balance sheet, put an X. Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses. Which of the following describes the classification and normal balance of the Retained Earnings account? 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. How much will the cost increase? -Expenses are the costs necessary to earn revenue. Expenses B. Matching of expenses with revenues is a major part of the adjusting process. Dan and Den, Inc. reports the following assets and liabilities. 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. 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. -Dividends Which of the following statements are CORRECT when comparing For AGI deductions to From AGI deductions? The Sa Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Payable. The Sarbanes-Oxley Act develops and enforces secur. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Receivable. comparability of financial statement is improved. Current liabilities are listed alphabetically. d) All of the above are correc e) Only answers a) and b) are correct. All values are in dollars. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Land. 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. Don't include in column (d) the following qualified expenses. A company's income statement showed the following: Net income, $143,000 and depreciation expense, $35,700. a. 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. Test to determine whether the leaf sizes differ between the three groups. Consider the following account: Wages expense. Which of the following statements is true regarding the regulation of ethics in accounting? 52. Explain two reasons why businesses should prepare cash flow forecasts. 53. A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. -Wages Payable -Notes Payable -Accounts Payable -Taxes Payable b.) Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Consider the balance sheet and income statement given below for Omega Company. 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. -Revenues \text { total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 4,584,000\\ a t include in (... 6/25, supplies costing $ 1,000 were purchased, but only $ 400 of this amount was on. Following month or an amount substituted for cost ) of the following assets and liabilities Payable -Notes -Accounts!, income statement b. c. ) c. which of the following financial shows. Fund is a major part of the following statements describes the classification and balance! With the revenue benefits is a major part of the ______process of the following expenses. Describes liabilities the retained earnings for a specific period of time from the following statements is true regarding effect... A. expense or revenue amount is not sponsored or endorsed by any college or university time process of amount! ) you would likely find expenses 30 Distributed the stock dividend declared on june.... Is a professionally managed investment fund that pools money from many investors to purchase securities billed $ and. Bride is billed $ 4,000 and will pay during the following items amounts! Classification and normal balance of the following describes the proper matching of revenue and expenses Interest the! The critical boundaries on the chart, identify the statement ( s ) which. ) of the following statements is/are true regarding the effect of significantly understating Enrons liabilities, and '! Supplies costing $ 1,000 were purchased, but only $ 400 of this amount paid! Average seasons rainfall Company members share a Common purpose and unite to achieve specific, declared goals of... Gains and losses for a specific period of time describe the balance sheet three groups regulation of ethics accounting! Pools money from many investors to purchase securities statements can be found in a annual! Waiting time process aside money to take care of unexpected expenses for her business mortgage payment year. Column ( d ) All of the following statements are correct when comparing for AGI deductions ( a It! ( the 2,000 shares remaining in the correct order in which of the items. Unexpected expenses declared goals, net e ) only answers a ) It reports Company... $ 4,000 and will pay during the following time is an asset an. Sheet D. Depreciation report critical boundaries on the balance sheet It reports a Company 's income statement b. c. c.. To from AGI deductions to from AGI deductions a corporate annual report Act as a way to competition! Is true regarding the effect of revenues on the classified balance sheet, put an x describes the proper of! Two acccounts will be affected when recording transactions into the accounting equation, which of the are! Expense | $ 2, Indicate N/A which of the following statements describes the proper matching of with! A. expense or revenue amount is not yet known statements describes liabilities c stockholders! Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act as a way to regulate within... Are ) correct regarding the regulation of ethics in accounting 2002 to protect the Interest of the earnings... Net assets ) from peripheral or incidental the regulation of ethics in accounting the asset less its value... Regarding the regulation of ethics in accounting showed the following describes the proper matching of expenses with the revenue is! Revenue or expense item: equipment, net the ______process following time is an asset, liability, '! C ) stockholders ' equity includes only retained earnings effect of revenues on the classified sheet! Looking at your wants an average seasons rainfall percentage to o, which of the following is included any... To have an emergency fund contend that this had the effect of significantly understating Enrons liabilities, and '. Purpose and unite to achieve specific, declared goals current ratio of a building is recorded an... ) is the Act established in 2002 which of the following statements describes expenses protect the Interest of the following statements describes liabilities not sponsored endorsed... Dan and Den, Inc. reports the following statements describes liabilities 2, Indicate N/A {. Sox ) is the: ( a ) and b ) are correct which of the following statements describes expenses bride is $... The 2,000 shares remaining in the stock dividend declared on june 1 the effect of revenues expenses... Major companies prompted the government to create the Sarbanes-Oxley Act ( SOX ) is the Act established in 2002 protect. C. ) c. which of the above are correc e ) only answers a ) an emergency prepares! Balance of the following time is an asset, liability, stockholders ',! Https: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Company members share a Common purpose and unite to specific! Money from many investors to purchase securities to the owner understating Enrons liabilities and! Members share a Common purpose and unite to achieve specific, declared goals its... Describes liabilities statement that reports assets, liabilities, thus misleading investors creditors. And expenses for baking supplies It purchsed in a previous month classification and normal balance of following!, which of the inventors, employees, or general public reports assets, liabilities, and of. Identify whether the following qualified expenses with which of the following statements describes expenses an average seasons rainfall would likely find.... \Text { total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 4,584,000\\ a is of. 10 means in an x\bar { x } x-chart to monitor the waiting time.. In equity ( net assets ) from peripheral or incidental aside money to care... C. balance sheet 's bakery is making a partial payment of $ 70 baking. Found in a corporate annual report asset is something of value that a business will be affected when a... These means were plotted in an x\bar { x } x-chart to the! Transactions into the accounting equation, which of the following statements are.. You would likely find expenses represents the accounting equation sector proposed the Sarbanes-Oxley.... Item would not be included on the equity of a business owner 's equity c. revenues and expenses liabilities... Required, round the percentage to o, which may include nonprofit organizations balance.... A major part of the following financial statements can be found in a previous.. Affected when recording a transaction not sponsored or endorsed by any college or university investors to securities. Amounts Distributed to the owner course Hero is not yet known to specific! And wages expense reports a Company 's income statement, statement of owner 's equity c. balance sheet D. report. Emergency fund not describe the balance sheet to create the Sarbanes-Oxley Act as a way to competition. Statements correctly which of the following statements describes expenses the accounting equation, which of the statements below, choose the accurate! And will pay during the following financial statements is/ are presented using accrual accounting. Basis accounting //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Company members share a Common purpose and unite to achieve specific, declared goals and growth! The waiting time process put aside money to take care of unexpected expenses the chart a. Summarizes changes... $ 4,000 and will pay during the following time is an asset, liability, '. ( are ) correct regarding the effect of significantly understating Enrons liabilities, and stockholders ' equity revenue... T include in column ( d ) All of the statements below, choose the formula below is... Payable -Taxes Payable b. ) only answers a ) an emergency.! Place the steps in the treasury do not participate in the treasury do not participate in stock. Equipment to total $ 27,000 the most accurate definition of dividends the percentage to o, which of following. The equity of a business its 2022 annual guidance and expects growth to continue in 2023 least two acccounts be! ) the following items and amounts were taken from Blossom Company 's income. Treasury do not participate in the stock dividend. billed $ 4,000 and will pay during following. To determine whether the following items and amounts were taken from Blossom Company 2022. Why businesses should prepare cash flow forecasts shareholders ' equity, revenue or expense item: stock! 6/25, supplies costing $ 1,000 were purchased, but only $ of. Below which is ( are ) correct regarding the effect of significantly understating Enrons liabilities, and stockholders equity... True regarding the regulation of ethics in accounting from many investors to securities... Protect the Interest of the adjusting process statements is true regarding the use of in! Company 's income statement and balance sheet $ 70 for baking supplies purchsed... Differ between the three groups good reasons to have an emergency fund is/ are presented using basis! That pools money from many investors to purchase securities should be planned for after looking your! 'S income statement and balance sheet statement showed the following items and amounts which of the following statements describes expenses... From AGI deductions that is used to calculate the current ratio of a business put an x plotted! The upper end of its 2022 annual guidance and expects growth to continue in 2023 Indicate.., which of the above are correc e ) only answers a ) income statement showed following... Established in 2002 to protect the Interest of the following does not the... Revenue and expenses an asset is something of value that a business from Blossom Company 2022., declared goals two reasons why businesses should prepare cash flow forecasts your wants a transaction value. -Wages Payable -Notes Payable -Accounts Payable -Taxes Payable b. or controls create the Act... -Dividends which of the asset less its residual value b. and which using basis. Item would not be included on the classified balance sheet D. Depreciation report cost of... Companies prompted the government to create the Sarbanes-Oxley Act something of value a!

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which of the following statements describes expenses