Not recording an accrued expense will have the following effect on the financial statements: (Check all that apply). (Check all that apply.). The first step in preparing a work sheet includes: Journalizing and posting adjusting entries from the work sheet is aided by which of the following? -Depreciation is the process of allocating the cost of an asset to the period the asset benefits. The journal entry on February 1 is? The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? It paid $25,000 for the car. -Plant assets are difficult to convert to cash quickly. Demonstrate your knowledge of a depreciation adjusting entry by completing the following sentence. -It has a life within the business greater than one year. By the end of the period, $300 had not yet been earned. The company immediately debited the Insurance expense account. Calculate the first month's depreciation expense as of December 31 using the straight-line method. Balance Sheet Answer: Unearned revenues refer to cash received in advance of providing a service or product. (Check all that apply.). -Entering the unadjusted balance for each account in the correct Debit or Credit columns of the Unadjusted Trial Balance columns. They are reported on an income statement. b) It reports amounts owed to employees and is a liability. By the end of the year, $400 had been earned. As of the end of the period, $200 of supplies still remain. On January 4 of the current year, total salaries for the five-day week are paid. Define the Salaries payable account by selecting the appropriate statement below. c) Record all prepaid expenses with debits to expense accounts. b) Debit cash and credit services revenue c) Profit margin is a useful measure of a business's operating results. Which of the following refers to the preparation of an adjusted trial balance? (Check all that apply.). (Check all that apply. Use this function. -One purpose is to verify that all temporary accounts have zero balances. Multiple select question. d) debit accounts receivable. Which of the following statements are true regarding depreciation? a) They refer to costs that are incurred in a period, but are both unpaid and unrecorded. Present Tense Conjugations - SPANISH III SEME, Smartbook: Chapter 4 Completing the Accountin, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas. Which of the following describes accrued revenue? By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. -Depreciation is recorded through an adjusting entry. Unearned revenues refer to amounts owed to the company that have not yet been billed. The line items of the income statement provide details of revenues, expenses, gains, and losses in a bid to explain how a company earned its net income. By the end of the year, $400 had been earned. -Most operating cycles are less than one year. It is a more detailed alternative to the single-step income . -The accounting cycle contains 10 steps. Unearned revenues refer to cash received in . By the end of the period, $300 had not yet been earned.$1,000 of cash was received in advance of performing services. Which of the following lists of assets would be classified as plant assets? Supplies on hand. (Check all that apply.). Obesity (BMI\mathrm{BMI}BMI 30\geq 3030 ) is a serious problem in the United States and is expected to get worse. or product. Course Hero is not sponsored or endorsed by any college or university. Image from Amazon Balance Sheet. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. b) accounts receivable being overstated. d) Debit Prepaid insurance for $400. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. Salaries expense would be debited for $3,500. -They are reported on a balance sheet. (Check all that apply. At the end of the previous year, a customer owed Chocolates R US $500. IFRS 17 defines insurance contracts as contracts under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. Credit Unearned revenues for $30. e) Total assets will be increased. The expense recognition (matching) principle aims to record ________ in the same accounting period as the ________ that are earned as a result of those costs. c) Salaries payable will be debited for $500. Which of the accounts below are considered accrued expenses? a) Unearned revenues refer to income reported on the income statement. Correct Answer. Which of the following lists contains only temporary accounts? In the first step, you identified whether the deferred revenue is a current or long-term liability. 46. Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below. They are reported on a balance sheet. Multiple choice question. $1,000 of cash was received in advance of performing services. -Businesses report financial information at regular intervals to ensure timeliness of data. Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In preparing financial statements. a) An asset will be increased. Click the answer you think is right Unearned revenues refer to amounts owed to the company that have not yet been billed. Examples of accrued expenses are wages expense and interest expense. Salaries payable will be debited for $500. ), a list of accounts and balances after adjusting entries have been recorded and posted. Below is an example of Amazon's 2017 income statement. On January 4 of the current year, total salaries for the five-day week are paid. Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year. a 24-month insurance policy was prepaid Select the statement below that describes a post-closing trial balance. Explain what unearned revenues are by selecting the statements They refer to revenues that are earned in a period, but have not been received and are unrecorded. Check each other's answers when you are finished. a) credit services revenue (Check all that apply.) Last modified on Wed 27 Apr 2022 18.53 EDT. Explain what unearned revenues are by selecting the statements below which are correct.png 1 An advance payment of $1,000 for services was received on December 1.png 1 Review the following statements and determine which is (are) correct regarding an adjusted trial bal 1 View more Study on the go Download the iOS Download the Android app Multiple choice question. The unadjusted trial balance contains all of the remaining accounts. d) Adjustments are entered in a middle column titled Adjustments. A reversing entry: (Check all that apply). The chart of accounts used by Norton Printing Company is listed below. They refer to revenues that are earned in a period, but have not been received and are unrecorded. c) Debit accounts receivable and credit cash, a) Debit accounts receivable and credit services revenue. Commonstock-$10parvalue,50,000sharesissuedandoutstanding$500,000Paid-incapitalinexcessofparvalue,commonstock200,000Retainedearnings660,000Totalstockholdersequity$1,360,000\begin{array}{lr} All adjustments can easily be seen in the _______ trial balance columns and then an ________ trial balance can be prepared. Service revenue would be credited for $400. The statement of cash flow is similar to the P&L, but it doesn't include any non-cash items such as depreciation. (Check all that apply.) Which of the following is (are) true regarding timeliness and the importance of periodic reporting? They are a liability. Which of the following accounts is considered a prepaid expense? apply.). Accounts receivable is usually increased when accruing revenues. Adjustments involve increasing both an expense and a liability account. Which of the following statements describes the expense recognition (matching) principle? (Check all that 3. ), Which of the accounts below are considered accrued expenses? Multiple select question. Insurance expense would be debited for $300. Which of the following is the proper adjusting entry? Some credit counseling agencies offer free advice; others charge a fee. a) If a prepaid expense was initially recorded as an expense, then expenses will be higher on the income statement. Also called an income statement, this report breaks down business revenues, costs, and expenses over a period of time (e., quarter). (Check all that apply.). \text{Retained earnings }&\underline{\text{\hspace{13pt}660,000}}\\ Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. (Check all that apply.). Unearned revenues refer to customer payments which have not yet been received. f) Net income is reduced. McDarrel's records $500 of accrued salaries on December 31. What is an intangible asset? Let's take a closer look to understand how revenue works for a very large public company. Before receiving payment, the seller may post these revenues in an asset account, such as Accounts Receivable. A company borrowed $10,000 from the bank at 5% interest. e) They are also called accounts receivable. Identify which group of accounts may require adjustments at the end of the accounting period. They refer to earnings which have been earned, but not yet billed. c) December 1 to December 31 When preparing an income statement, revenues will always come before expenses in the presentation. By the end, of the period, $300 had not yet been earned. 2. -The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods or services. D. Accrued expenses are expenses already incurred but not yet paid. Demonstrate the required adjusting entry by choosing the correct statement below. They are also called accounts receivable. Unearned revenues refer to cash received in advance of providing a service or product. d) debit accounts receivable By the end of the year, $400 had been earned. c) expenses on the income statement will be understated. Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Then, you use this information to create the proper financial transaction in the correct areas within the company's balance sheet. Source: American Journal of Preventive Medicine 424242 (June 2012):5635702012):563-5702012):563570. If the company fails to deliver the promised product or service or a customer cancels the order, the company will owe the money paid by the customer. Unearned revenue refers to the money small businesses collect from customers for a or service that has not yet been provided. (Check all that apply.). b) They refer to cash received in advance of performing a service or product. c) They refer to earnings which have been earned but not yet billed. 1) determine what the current account balance equals 2) determine what the current account balance should equal 3) record an adjusting entry Place the steps in the adjusting process in the correct order in which they would be performed. b) Accounts receivable will be credited for $400. Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. Explain what unearned revenues are by choosing the correct statement below. The adjustment causes an increase in an asset account and an increase in a revenue account. They are reported on a balance sheet. 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