Accounting questions and answers. In the statement of stockholders' equity, Retained Earnings had a beginning balance of $62,000. b. adjusting entries (wrong) Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000, for the fiscal year ending on April 30? Liability. d. $9,529, The end-of-period spreadsheet The statement of owner's equity should be prepared after the income statement and before the balance sheet The income statement will present revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last The classified balance sheet will show which asset subsections? $21,600, debit d. current assets and property, plant, and equipment, d. current assets and property,plant and equipment, The classified balance sheet will show which liability subsections? Structured Query Language (known as SQL) is a programming language used to interact with a database. Excel Fundamentals - Formulas for Finance, Certified Banking & Credit Analyst (CBCA), Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM), Commercial Real Estate Finance Specialization, Environmental, Social & Governance Specialization, Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM). Which of the following is not considered a special journal? b.Service Revenue b.assets Balance Sheet C. Statement of Owner's Equity D. Both the income statement and the balance sheet. (d) statement of cash. common source of recession: a decrease in aggregate demand, a decrease in The heading of the statement consists of three lines: Name of the company. a.deferred Supplies Expenses3,800 e. expense. c. net income c. net income (loss) le; Debit column for the Balance Sheet and Statement of Owner's Equity columns. $20,240 At year end, the adjusting entry on the work sheet would, On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. a.Received cash for services performed. Types of Equity. Cash None of these choices, b. be carried over to the debit column of the balance sheet on the work sheet, The first step of the accounting cycle is to _____. d. After the first closing entry, the owner's capital account has been increased (decreased) by the amount of net income (or loss) for the period. All other trademarks and copyrights are the property of their respective owners. c.expenses understated and therefore net income understated Balance sheet C. Statement of owner's equity D. Statement of cash flows. Classify it as a current asset, a current liability, an expense, a fixed asset, a long-term debt, a revenue, or a stockholders' equity account. a. Western Electric has funded only $50,000\$ 50,000$50,000 of the non-pension postretirement benefits this year. 1. b. before the income statement and balance sheet. b.snow removal services that have been paid for three months in advance liquidity. Balance Sheet b. d. $21,497, Which one of the fixed asset accounts listed below will not have a related contra asset account? capital, Which account will not appear on the post-closing trial balance? Which of the following statements indicates that a company earned a net income for the period? _8. Statement Of Financial Position. The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts. b.a bill is received in advance of services rendered d.Liabilities do not include wages owed to employees of the company. The Focus Company initially offered to buy the land for $181,323. b.are due to be paid in more than one year d.Liabilities do not include wages owed to employees of the company. Classify it as a current asset, a current liability, an expense, a fixed asset, a long-term debt, a revenue, or a stockholders' equity account. d.assets, liabilities, revenues, expenses, owner's equity, b.assets, liabilities, owner's equity, revenues, expenses, THe term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is a.owner's equity accounts receivable c.Accounts Payable The accounting cycle requires three trial balances be done. (You should be able to use at least two core principles in your answer.). . d. debit Owner's Capital; credit Prepaid Insurance, c. debit owners capital; credit insurance expense. Notes Receivable due in 350 days appear on the, balance sheet in the current assets section, The Statement of Owner's Equity should be prepared, after the income statement and before the balance sheet, after the income statement and the statement of owner's equity, The Income Statement will include the following accounts, Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed last. c.Insurance Expense c. revenues, expenses, and drawings. At the end of the current year, Western Electric received the following information from its actuarial firm: Pensionexpense$2,500,000Postretirementbenefitsexpense750,000\begin{array}{|cc} State whether the normal balance is a debit or a credit. Use the symbols D\mathbf{D}D if a debit is required, C\mathbf{C}C if a credit is required, and N\mathbf{N}N if the account is not closed at the end of the period. Appreciation or depreciation of tangible assets. What is the best explanation for this journal entry? b. before the income statement and balance sheet. b. balance sheet in the property, plant, and equipment section c. current assets and other equity Net income for the period is. d.liabilities, withdrawal of cash made by the owner will be found in the b.AICPA Changes in the capital balance of a sole proprietorship are attributed to the following factors: Earning and spending money from the business. d. $365,000. Under what conditions does each approach provide a good estimate of a stock's value? Statement of owner's equity C. Income statement D. Balance sheet, Unearned revenue or Deferred Revenue is reported in the financial statements as: a) A revenue on the balance sheet. Use the following worksheet to answer the following questions. c. the adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts, Use the adjusted trial balance for Stockton Company. (b) total assets on the balance sheet. Which of the following has steps of the accounting cycle in proper sequence (some steps may be missing)? Use the following worksheet to answer the following questions. b. Retained earnings increase with an . Income statement c. Adjusted trial balance d. Statement of owner's equity, What particular item of financial or operating data appears on both the income statement and the statement of owner s equity? Unearned rent, representing rent paid for the next six months' occupancy, would be reported on the landlord's balance sheet as a(n): a. The statement begins with the opening equity balance for the period, adding and subtracting items . (1) The income statement columns in the worksheet show that debits are equal to $55,800 and credits are $62,705. 2. an increase in a asset and an increase in owner's equity 3. an increase in an asset and a decrease in another asset 4. a decrease in an asset and a decrease in a liability 5. a decrease in an asset and a decrease in owner's equity Transactions: a) Received cash for common stock b) Purchased supplies for cash Current Year Prior Year Consultation services $1,000,000 $ 800,000 Design services 1,800,000 1,500,000 Using a horizontal analysis, which is correct? |Current assets |$ 7,000| Net income| $ 15,000 |Current liabilities |4,000| Stockholders' equity |21,000 |Average assets |44,000 |Total liabilities| 9,000 |Total, Using the following balance sheet and income statement data, what is the earnings per share? b. expenses, drawings, and owner's equity. How should the kitchen of a Chinese restaurant be structured? b.been incurred but not paid and not recorded Most computerized accounting systems use principles from manual systems. a. It is also known as net assets since it is equivalent to the total assets of a company minus its. The standard deviation? Adjusting entries are journalized and posted to the ledger. Machinery. D. The sum of the materials, labor and overhead costs paid during the period. The required financial statements for public traded companies include: 1. Which of the following account groups are nominal accounts? a.cash received on customer's account After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are $37,875 and $32,735, respectively. \text {Pension expense} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$2,500,000 & \\ Balances of the current asset and current liability accounts at the end and beginning of the year are listed b, Where are dividends declared and paid to stockholders reported or included on the financial statements? be carried over to the Credit column of the balance sheet on the work sheet. 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)? Under which type of inventory system is an inventory subsidiary ledger maintained? a. the beginning balance of owner's equity b.The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts. Required If the individual subsidiary ledger accounts contained the following data: Cadence Company, Vendor, $200, credit balance Franklin Enterprises, Customer, $750, debit balance Marcelo Construction, Client, $125, debit balance Peyton Supplies, Supplier, $375, credit balance The accounts receivable control account and the accounts payable control account balances would be a. A/R, $1,375; A/P, $375 b. A/R, $525; A/P, $175 c. A/R, $875; A/P, $575 d. A/R, $750; A/P, $700 _3. All of the financial statements are for a period of time except the: A. owners equity statement B. balance sheet C. statement of cash flows D. income statement. (a) What is the expected number of mismatches? a. closing entries For example, for each $100 charged on Visa cards, a merchant might receive only$98. a. d. Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Cr., Accounts Payable Dr. _13. a.statement of owner's equity c.B1B e-commerce b.Debit Cash; Credit Taylor Thomas, Drawing 7. List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance. c.Fees Earned The balance sheet should be prepared a.after the income statement and before the statement of owner's equity b.before the income statement and after the statement of owner's equity c.after the income statement and the statement of owner's equity d.before the income statement and the statement of owner's equity c.expansion of a product line report to management c. statement of shareholders equity. (c) total liabilities on the balance sheet. Select the best explanation for the entry. a. balance sheet in the current assets section B) budgeted balance sheet. a.Cash, debit; Wages Expense, credit $17,673 d.B1C e-commerce, The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n) _____ are the exact opposite of the related _____. Prepare an income statement, statement of changes in stockholders' equity, year end balance sheet, and statement of cash flows for each year. The work sheet at the end of August has $6,700 in the Balance Sheet credit column for Accumulated Depreciation. Year 2 production is expected to be 195,000 billable hours. a.debit Merchandise Inventory, $158,000; credit Cost of Merchandise Sold, $158,000 the balance sheet and the statement of owner's equity. b.Wages Payable c.Land; Accounts Payable; Drawing A. prepare an adjusted trial balance List and discuss the purpose of each financial statement, the order in which the financial statements are prepared, and the information included in each financial statement (information in the back of Chapter 3). c.Liabilities, revenues, and owner's equity are increased by credits. When preparing the statement of owner's equity, the beginning capital balance can always be found. a.debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800 The f, Using the following balance sheet and income statement data, what is the current ratio? b) Statement of owner's equity, balance sheet, income statement. a.supply chain management Balance sheet C. Income statement D. Statement of owner's equity. The cashier scans 800 items. b. The following are steps in the accounting cycle. The companies settled on a purchase price of $211,331. d.Unearned Rent. c. revenues and expenses, the drawing account. analyze and record the transactions in the journal, d. analyze and record the transactions in the journal, The last step of the accounting cycle is to _____. -Rent Expense remain on the Income Statement section of the work sheet. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: The journal entry to close Fees Earned, $750, and Rent Revenue, $175, during the year-end closing process would be, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas. Assets and liabilities are reported on: A. the statement of stockholders' equity. c. debit Owner's Capital; credit Insurance Expense Yes. c. unadjusted balance shee. How will this transaction affect net income? a.debit to Merchandise Inventory and a credit to Cost of Merchandise Sold (the previous years total assets were $200,000 and s, Stockholders' equity: a. is usually equal to cash on hand b. includes paid-in capital and liabilities c. includes retained earnings and paid-in capital d. is shown on the income statement, Potential stockholders and lenders are interested in a company's financial statements. Shareholder's Equity: The owners' interest in a corporation is called shareholder's equity. The statement of owner's equity should be prepared a. before the income statement and after the balance sheet b. before the income statement and balance sheet c. after the income statement and balance sheet d. after the income statement and before the balance sheet 2. Identify each account as either a balance sheet account or an income statement account. Assume that the capital account started with a beginning balance of $10,000. depreciation expense the last day of the accounting period, although they are actually journalized after the end of the accounting period, Closing entries are dated in the journal as of. c. balance sheet as a liability. None of these choice, a. the debit column of the balance sheet on the work sheet, Net income on the Income Statement section of the work sheet will $115,000. Get access to this video and our entire Q&A library, What Are Financial Statements? b.adjusting entry for depreciation b. other revenues and property, plant and equipment Record the following closing entries on page 25 of the general journal. d.analysis, Managerial accountants would be responsible for providing information regarding Income Summary 925, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, accounting test 2 (grice, troy university). a.increases assets, increases owner's equity Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? a. an expense on the income statement b. a revenue on the income statement c. an asset on the balance sheet d. owner's equity on the balance sheet, Using the following balance sheet and income statement data, what is the total amount of working capital? b. before the income statement and after the statement of owner's equity. This would affect the income statement by having \text {Postretirement benefits expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 750,000 & \\ Which of the following statements is false? d.IRS, The unearned rent account has a balance of $72,000. he Microsoft product most commonly used to create a spreadsheet is, The post-closing trial balance differs from the adjusted trial balance in that it does not. $5,500 b. Now that you know all about the four basic financial statements, read on to learn what financial statement is prepared first. September 4, 2020. c.decreases assets, increases liabilities Which include parts of the plain of Ganges River? c.$35,000 Changes in retained earnings are commonly reported in the: - Statement of cash flows - Balance sheet. b. the ending balance of owner's equity Statement of changes in stockholders' equity c. Statement of cash flows d. Balance sheet, A list of assets, liabilities, and retained earnings is called: a. c. either the Adjusted Trial Balance or the Income Statement columns of the end-of-period spreadsheet c. after the income statement and balance sheet. b.proprietorship d. other liabilities and long-term liabilities, a. current liabilities and long term liabilities, The following accounts are closed at the end of the accounting period except _____. 6. b. Rent Revenue, Fees Earned, Miscellaneous Expense. a. c.balance sheet current liabilities and long-term liabilities, Debts listed as current liabilities are those that, added to liabilities and the two are equal to assets. (a) Notes payable (b) Advertising expense (c) Owner's capital (d) Cash (e) Service revenue, In which of the following financial statement(s) would you likely find the Retained Earnings account? b. is used to summarize account balances and adjustments for the financial statements b.after the income statement and before the balance sheet a.are owed to the owner and will never be paid Statement of cash flows B. c.after the income statement and balance sheet c. current liabilities and long-term liabilities, After posting the first closing entry to the owner's capital account, the balance will be increased (decreased) by, c. the net income (net loss) for the period. c. Design services showed an increase in revenue of 25%. Statement of Comprehensive Income. Fixed overhead was$900,000. Like any financial statement, the heading is made up of three lines. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: In what order should they be prepared? b.$228,830 either the adjusted trial balance or the income statement columns of the work sheet, In the accounting cycle, the last step is, Ordinarily begins on the first day of a month and ends on the last day of the following twelfth month. c. in the Balance Sheet columns of the work sheet An adjusted trial balance is prepared. the Debit column of the balance sheet on the work sheet. Statement of Cash Flows. Classify it as a current asset, a current liability, an expense, a fixed asset, a long-term debt, a revenue, or a stockholders' equity account. Refer to the information for Kellman Company above. b. Identify the statement: 1- Balance sheet 2- Balance sheet and retained earnings statement 3- Income statement, On the statement of owners equity, the beginning capital is $48,000, the Net Income for the year is $20,000 and the drawing for the year is $78,000, what will the ending capital amount be? a. investments plus net income (loss). After posting the second closing entry to the income summary account, the balance will be equal to, the net income or net loss for the period. In which journal would the payment of salaries be posted? Building Balance Sheet and statement of Owner's Equity-Debit, and income statement-Credi. Is the Retained Earnings account found on the balance sheet or the income statement? The classified balance sheet will show which liability subsections? c.debit Cost of Merchandise Sold, $5,000; credit Merchandise Inventory, $5,000 b.expenses overstated and therefore net income understated 2,500 a. is the probability of more than 30 mismatches? c.revenues less expenses (order is not important) C. both the balance sheet and the income statement. The following amounts were taken from a company's balance sheet: 2. Year1234MNominalMoneySupply(billions)380.95400420441gMGrowthRateofNominalMoneySupply(percent)PPriceLevel(index)Year2=10095.2105.0110.25Inflation(percent). The Statement of Owner's Equity should be prepared after the income statement because this statement needs to list the net income or net loss of the Our experts can answer your tough homework and study questions. c.Sales Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM), An equity statement also referred to as a statement of owners equity or statement of changes in equity is a financial statement that a company is required to prepare along with other important financial documents at the end of a reporting period. -Depreciation Expense, Closing entries are dated in the journal as of, the last day of the accounting period, although they are actually journalized after the end of the accounting period, added to liabilities and the two are equal to assets. Determine the total liabilities for the period. Net income is $2,298. Unearned Fees appear on the: a. balance sheet in the current assets section. Answer the question to help you recall what you have read. Cash $16,000 2. b. balance sheet as an asset. c. Net income is $26,205. c. is a working paper that is required Dec. 31Owner's Capital925 B. in the operating section of the income statement. Depreciation expense would be found on which of the following financial statements? Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. b. An appraisal reported the market value of the land to be $221,555. a.Account titles of liabilities often include the term "payable." a. a.Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance. D. statement of cash flow. The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet c. The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of$125 per unit. c. preparing the financial statements Determine the balance in Salaries Expense on July 1 after reversing entries have been journalized and posted to the ledger. a. are due to be paid in 5 to 10 years b. Adv, The net income reported on the income statement for the current year was $1,387,000. accounts payable The Statement of Owner's Equity should be prepared investments plus net income (loss) less withdrawals When preparing the Statement of Owner's Equity the beginning balance should be followed by ____ to arrive at the ending balance of owner's equity. a.B2B e-commerce Key Takeaways Stockholders' equity is the value of a business's assets that remain after subtracting liabilities. d.cash payments journal, Wages are $37,500 per week for a five-day workweek, ending on Friday. d. The adjusted trial balance will be used to record the adjustments for the period. aggregate supply, or both? |Current assets| $ 7,000| Net income| $ 15,000 |Current liabilities |4,000| Stockholders' equity| 21,000 |Average assets |44,000| Total liabilities|.

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