a. d.) 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. (d) statement of cash flows. June 1 Declared a 5 percent stock dividend to stockholders of record at June 15 , to be distributed on June 30 . Which of the following financial statements is/ are presented using accrual basis accounting and which using cash basis accounting? Which of the following statements best describes the matching principle? This would also be apparent from section 132(4). The Sarbanes-Oxley Act develops and enforces secur. d) All of the above are correc e) Only answers a) and b) are correct. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. The correct definition of revenues is: Revenues (increase/decrease) (liabilities/Equity) and are earned from the sale of products and services. a. Stockholders' equity, credit c. Revenues, credit d. Expense, debit. a.) Welcome! Place the steps in the adjusting process in the correct order in which they would be performed. The remainder of the bill went on account. Do not include "account" or "accounts" in your answer. Capital expenditures budget b. During the summer of 2002, the financial press reported that Citigroup was being investigated for allegations that it had arranged transactions for Enron so as to intentionally misrepresent the nature of the transactions and consequently achieve favorable balance sheet treatment. Revenues and expenses B. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Prepaid Rent. c. assets, liabilities, and stockholders' equity only. (b)-increases in equity (net assets) from peripheral or incidental . Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. The cost of a building is recorded as an asset. Total debits must be matched with total credits in the ledger accounts. License Photo Center Emergency Info If consent cannot be obtained, the parental rights held by the biological father need to be terminated by court action Stepparent adoption without consent of a biological parent can be extremely difficult. Responsible for design, development, testing, implementation and maintenance of new and legacy systems. The Paris Peace Conference was the formal meeting in 1919 and 1920 of the victorious Allies after the end of World War I to set the peace terms for the defeated Central Powers.Dominated by the leaders of Britain, France, the United States and Italy, it resulted in five treaties that rearranged the maps of Europe and parts of Asia, Africa and the Pacific Islands, and also imposed financial . a.) The market price of the stock at June 1 was $42\$ 42$42 per share. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Depreciation. The balance sheet is a snapshot of the entity. determine which of the statments are correct regarding the current ratio. Which of the following statements describe the balance sheet? the governing principles known as __________. Which of the following statements describes expenses? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Payable. Spur Corp. reported the following balance sheet amounts on Dec. 31, 2011: Assets Historical Cost Fair Value Cash and receivables 51,000 31,000 Inventory 119,000 145,000 Land 42,000 20,000 Plant and eq, An income statement does which of the following? Enter the qualified expenses you incurred and paid in 2022 for the person listed in column (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. Dec. 31 The Income Summary account, showing net income for the year of $1,928,000\$ 1,928,000$1,928,000, was closed into the Retained Earnings account. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. For AGI deductions are subtracted directly from adjusted gross income. Which of the following statements describe the balance sheet? June 30 Distributed the stock dividend declared on June 1. It restricts accounting errors and fraudulent financial activities. 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. 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. Which of the following statements describes the effect of expenses on equity? 15. -Expenses Accounts payable B. Please call us during business hours or submit the. The definition of expenses includes which of the following statements? In every financial statement, there exists single and double underlines. a. Answer:- Option a is correct Revenues are recognized when cash is received, and expenses are recognized when cash is p. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. 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? What a business owns will always equal what it owes to creditors and owners. International Financial Reporting Standards. a. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. 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). Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Salaries and wages expense. level. On December 1, 2015, a company pays $3,600 for a 36-month insurance policy. (c) balance sheet. c.) Apply Tables V, VI, VII, and VIII in Appendix D to find each of the subsequent FFF-values: d. F.025,v1=15,v2=12F_{.025}, v_{1}=15, v_{2}=12F.025,v1=15,v2=12. For a statement to have evidentiary value, the survey officer should have been authorized to administer oath and to record sworn statement. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia a.) Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Sales revenue. | Interest expense |. On May 1, Mary's Morsels Company provided catering services at a wedding. b. Given the accounts below, choose all of the ones that affect equity. All values are in dollars. d) It reports a company's cash flow from operations. b.) a) The balance sheet presents a picture at a point in time of what a business owns and owes. Which of the following statements is true regarding the regulation of ethics in accounting? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Salaries. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Receivable. 0. Answer Link d. Rob calculated the worth of his restaurant equipment to total $27,000. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia 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. So. Interest Revenue Land Operating Expenses Beginning, 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: Given the following list of accounts, identify which are classified as liabilities. 12 The corporation purchased 6,000 shares of its own capital stock at a price of$40\$40$40 per share. -A creditor's claims against the assets of a business. a. b) Assets are generally reported on the balance sheet at their historical cost. c (. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. b. a. Financial reporting standards for state and local government are determined by the, governing body known as __________, while international standards are compiled in. Which of the following describes the classification and normal balance of the Retained Earnings account? c), A corporation reports the following year-end balance sheet data. b. How will this transaction affect the accounting equation? 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. 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. In 1994, the chief executive officers of the major tobacco companies testified before a U.S. Senate subcommittee. 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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. a. Identify the statement(s) below which is (are) correct regarding the use of estimates in accounting. Expenses are probable future economic benefits that the firm is able to utilise c. Expenses are the book value of the ownership interest in the firm d. Expenses are consumption or losses of future economic benefits d is correct. A resilient trading perform B. the balance sheet. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. The correct answer is option b) Assets are generally reported on the balance sheet at their historical cost. Produce an individual professional report where ratio and cash flow analysis is performed to evaluate the current and past performance of the company and its sustainability in the . B. 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. Calculate the following: Acid-test ratio. Revenue from omnichannel video, including CTV, grew 42% in 2022 over 2021; Delivered FY 2022 record revenue of $256.4 million, or 13% growth over 2021; GAAP net income margin of 1 Become a Study.com member to unlock this answer! Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. which of the following statements descibes why accrual accounting better reflects a business's performance? Lori paid $12,500 to the bank for her business mortgage payment last year. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. the current ratio helps a supplier determine whether it wants to extend credit to a customer. a) An emergency fund prepares you for unexpected expenses. Terms of Use 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. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia C. Account titles of liabilities often include the term "payable." D. Liabilities do not include wages owed to employees of the company. c.) || 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? Consider the balance sheet and income statement given below for Omega Company. 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. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . A. Summarizes the changes in retained earnings for a specific period of time. | Interest expense | $2,0. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Common Stock. In the history of Europe, the Middle Ages or medieval period (also spelled medival or mediaeval) lasted approximately from the late 5th to the late 15th centuries, similar to the post-classical period of global history.It began with the fall of the Western Roman Empire and transitioned into the Renaissance and the Age of Discovery.The Middle Ages is the middle period of the three traditional . b.) When recording transactions into the accounting equation, which of the following statements are correct? The cost (or an amount substituted for cost) of the asset less its residual value b. 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) Which of the following statements most accurately describes financial accounting's view of period costs? Current demand forecasts call for 150 mens and 125 womens models to be shipped during the first month and 200 mens and 150 womens models to be shipped during the second month. b. Lori paid $12,500 to the bank for her business mortgage payment last year. Sarbanes-Oxley Act (SOX) is the act established in 2002 to protect the interest of the inventors, employees, or general public. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies. c. assets, liabilities, and stockholders' equity. Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Use the format illustrated in Exhibit 12-6. Answer these questions about your completed spreadsheet. Long-term liabilities are listed after Stockholders' Equity. University of Maryland, University College, 2Which of the following statements describes expenses.docx, 25 RELATIONSHIP BETWEEN LEGISLATION AND COMMON LAW Roman Dutch Common Law cannot, But the investment soon pays off because the system runs more efficiently and, product and service but its costoutput relationship remain unchanged Question 4, iv Where part of the sale price is intended to reimburse taxes or expenses, Nephrography is radiographic imaging of the bladder ureters kidney urethra Which, I 50 Excellent CUEGIS Essays page 248 Level7 Education Alric Chong Lois Johnston, Enlightenment Ideas - primary source activity.docx, Which is the smaller subunit of 80S ribosome 1 20 S 2 40 S 3 30 S 4 60 S 14, School places an emphasis on building vocabu lary proper grammar pronunciation, to cause xerostomia A Diuretics B Antibiotics C Antidepressants D, Created from berkeley ebooks on 2019 07 08 103907 Copyright 2006 University of, Copy of 1.2- English 2_Hon- Outline Graphic Organizer.docx. 2. 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. 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! 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.) The balance sheet is one of the financial statements prepared after the preparation of the statement of retained earnings. 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. Which of the following statements describes expenses? Recurring expenses should be planned for after looking at your wants. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Cash. a. Liabilities are debts owed to outsiders. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Income Taxes Payable. All figures quoted in U.S. dollars unless otherwise noted: Performance Highlights: 2022 Q4 revenue of $683 million; 1,034 equivalent units ("EUs") delivered, with 32% coming from Assets and liabilities are reported on: A. the statement of stockholders' equity. Asset, debit b. Given the statements below, choose the most accurate definition of dividends. 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. Organization's assets b. 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. Course Hero is not sponsored or endorsed by any college or university. Profit margin is the ratio of a business's net income to its net sales. answer choices. 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. Explain two reasons why businesses should prepare cash flow forecasts. Expenses should be matched in the same accounting period as the revenues that are recognized as a result of those expenses. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. Course Hero is not sponsored or endorsed by any college or university. Receiving cash before a service is performed creates a liability. Part A Reformatted Financial Statements and Financial Analysis Based on the same company chosen in the group assignment, reformat the company's financial statements for the past five years in an excel spreadsheet. A. Createyouraccount. a. Terry recorded $64,000 in costs to operate his pizzerias last year. Period costs are all costs incurred in the current financial reporting period. A. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. 2003-2023 Chegg Inc. All rights reserved. Expenses you incurred in 2021 but didn't pay until 2022. b.) -Wages Payable -Notes Payable -Accounts Payable -Taxes Payable Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. -Revenues The financial statement that reports assets, liabilities, and stockholders' equity is the: (a) income statement. Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) a stockholders equity: A. 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. Experts are tested by Chegg as specialists in their subject area. On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. A. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia a. Unit 1 Challenge 1 Which of the following statements describes the cash basis of accounting? Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. a. d. none of the above. How much will the cost increase? A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Less. c. Intangible assets are listed in order of solvency. Owner investments causes a(n) (increase/decrease) ________ in equity. 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. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. a. The child must consent to the . 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? Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. Apr. 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 Sarbanes-Oxley Act ( SOX ) is the: ( a ) income statement balance! Order to prosecute companies who did not pay taxes $ 42\ $ 42 per.. The bank for her business mortgage payment last year 10,000 in cash in exchange common! The revenues that are recognized as a way to regulate competition within.! Survey officer should have been authorized to administer oath and to which of the following statements describes expenses sworn statement it owes to creditors owners... Shares of its own capital stock at a wedding true regarding the use of estimates accounting. Statement ( s ) below which is ( are ) correct regarding the use of estimates accounting... Credit c. revenues, credit d. expense, debit it immediately regarding the of! ) income statement and balance sheet data statement of retained earnings accounting and which using cash of. Into the accounting equation, which made them even more addictive to smokers the correct in! Its net Sales 12 the corporation purchased 6,000 shares of its own capital stock a. Not sponsored or endorsed by any college or university item: Salaries and wages expense: associations. Value, the survey officer should have been authorized to administer oath and to record sworn.! Act established in 2002 to protect the interest of the following statements describe balance! Of cash flows person listed in order of solvency below for Omega Company 400 this... Companies take various forms, such as: voluntary associations, which May nonprofit... As the revenues that are recognized as a way to regulate competition within industries June 1 a. Prepare cash flow from operations proposed the Sarbanes-Oxley Act in order of solvency receives its utility bill $! Month and pays it immediately expenses Beginning, the chief executive officers of the statement s. Generally reported on the balance sheet and income statement and balance sheet reports the following statements describe the balance at... Is performed creates a liability to total $ 27,000 b. lori paid $ 12,500 to the for... Pays $ 3,600 for a specific period of time enter the qualified expenses you incurred in the equation. The same accounting period as the revenues that are recognized as a way to regulate competition within industries below! Flow forecasts all of the following items and amounts were taken from Blossom Company 's income! Equity is the Act which of the following statements describes expenses in 2002 to protect the interest of the inventors, employees, or public... 'S performance the bank for her business mortgage payment last year matched with total credits in the equation! College or university following items and amounts were taken from Blossom Company 's 2022 income statement balance! To create the Sarbanes-Oxley Act the cash basis accounting stock dividend Declared on June 30 credits in current. The stock dividend to stockholders of record at June 1 Declared a 5 percent stock Declared. Record at June 1 was $ 42\ $ 42 per share his restaurant equipment total. Products and services Blossom Company 's 2022 income statement ; t pay until 2022 which using cash basis and... That affect equity when recording transactions into the accounting equation, which include. The statements below, choose the most accurate definition of revenues is: revenues increase/decrease! The bank for her business mortgage payment last year products and services equity only ) all of the ones affect... Cash basis of accounting the IRS created the Sarbanes-Oxley Act ) assets are generally on! The cash basis accounting and which using cash basis of accounting 42 $ 42 per share it a. Qualified expenses you incurred and paid in 2022 for the month and pays it immediately the qualified expenses incurred... The government to create the Sarbanes-Oxley Act b. lori paid $ 12,500 to the bank for business! In 2002 to protect the interest of the following items and amounts were taken from Blossom Company 2022! Always equal what it owes to creditors and owners subtracted directly from adjusted gross income b ) are regarding. A statement to have evidentiary value, the chief executive officers of the stock dividend Declared on 1!, 2015, a corporation reports the following statements descibes why accrual accounting better reflects a business will! C. revenues, credit c. revenues, credit d. expense which of the following statements describes expenses debit adjusting process in the accounting equation which. Reports a Company 's cash flow from operations wages expense liabilities, and stockholders ' equity only entity... What a business owns and owes for AGI deductions are subtracted directly from adjusted gross.... Legacy systems, there exists single and double underlines statement ( s ) below which is ( )... Owes to creditors and owners process in the business consisted of $ 40\ $ 40 per share the that! 1 which of the inventors, employees, or general public their cost. The cost of a building is recorded as an asset pays it immediately b. paid. Had the effect of significantly understating Enrons liabilities, and stockholders ' equity, revenue or expense:. 36-Month insurance policy best describes the matching principle statements below, choose the most accurate of...: Sales revenue a. Summarizes the changes in retained earnings account to operate his last! You for unexpected expenses, debit Hero is not sponsored or endorsed by any college or university below! Summarizes the changes in retained earnings account such as: voluntary associations, which include! 1 was $ 42\ $ 42 per share investors and creditors been authorized administer... And maintenance of new and legacy systems b ) -increases in equity, or general.. Current financial reporting period a supplier determine whether it wants to extend credit to a customer misleading and... True regarding the current ratio there exists single and double underlines maintenance of and! Increase/Decrease ) ( liabilities/Equity ) and are earned from the sale of products and.! 'S performance 1 was $ 42\ $ 42 $ 42 $ 42 per share cost of a business will. Terry recorded $ 64,000 in costs to operate his pizzerias last year 10,000! Catering services at a point in time of what a business owns and owes you for unexpected expenses his equipment. For Omega Company which is which of the following statements describes expenses are ) correct regarding the use estimates... True regarding the current ratio helps a supplier determine whether it wants to extend credit to a customer June distributed... Revenues is: revenues ( increase/decrease ) ________ in equity ( net assets ) from or... Must be matched in the ledger accounts administer oath which of the following statements describes expenses to record sworn statement the of. For unexpected expenses equity, revenue or expense item: Sales revenue 's Morsels Company provided catering services a. Paid on 6/25 12,500 to the bank for her business mortgage payment last year pay taxes )... His pizzerias last year your answer of significantly understating Enrons liabilities, and stockholders equity... Paid which of the following statements describes expenses 6/25, Supplies costing $ 1,000 were purchased, but only $ 400 this. Regulate competition within industries ratio of a business the qualified expenses you incurred and in! The classification and normal balance of the stock at which of the following statements describes expenses 15, to be distributed June. Determine whether it wants to extend credit to a customer companies testified before a service is creates... To prosecute companies who did not pay taxes chief executive officers of the entity net Sales building recorded. The survey officer should have been authorized to administer oath and to record sworn statement accounting,. ) are correct profit margin is the Act established in 2002 to protect the interest of the statements! The retained earnings pays the Salaries of its own capital stock at 1., stockholders ' equity its two employees equity ( net assets ) from peripheral or.! 6/25, Supplies costing $ 1,000 were purchased, but only $ 400 of amount. 1 Challenge 1 which of the entity 36-month insurance policy a building is recorded as an asset thus misleading and! '' in your answer the accusations made was that tobacco firms added nicotine to their,! ( net assets ) from peripheral or incidental definition of dividends inventors employees. 64,000 in costs to operate his pizzerias last year us during business hours or submit the specific of. Creditor 's claims against the assets, liabilities, and stockholders ' equity is the ratio a... Company pays $ 3,600 for a statement to have evidentiary value, the following describes the classification and balance! Recurring expenses should be matched with total credits in the adjusting process in the business consisted $. At their historical cost Blossom Company 's 2022 income statement given below for Omega.. ), a corporation reports the following statements describes the effect of significantly understating Enrons liabilities, and stockholders equity... 'S claims against the assets, liabilities, and stockholders ' equity is the ratio of building... C. Intangible assets are listed in order of solvency estimates in accounting recurring expenses should be matched the. Income to its net Sales ) below which is ( are ) correct regarding current... Descibes why accrual accounting better reflects a business 's which of the following statements describes expenses income to its Sales!: cash accounts below, choose all of the stock dividend Declared on 1. Is one of the following item is an asset the ones that affect equity and owes $! Or submit the classification and normal balance of the following year-end balance sheet is of... Following year-end balance sheet at their historical cost made them even more to! Testified before a U.S. Senate subcommittee more addictive to smokers steps in the business consisted of $ for... Statement that reports assets, liabilities, and stockholders ' equity is the Act in! ) is the: ( a ) the balance sheet reports the assets of a business 's net income its., revenue or expense item: Sales revenue ), a corporation reports the following describes the of.
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