which of the following statements describes expenses

Reports the changes in assets, liabilities, and stockholders' equity over a period of time. D. the income statement. a. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. The health department sampled patients for 10 consecutive days and recorded each patient's lobby waiting time (in minutes). Susan recorded $82,000 as profit last year. Source: venturebeat.com Exceptions to these requirements may apply. 15. Liabilities are debts owed to outsiders. Sarbanes-Oxley Act (SOX) is the act established in 2002 to protect the interest of the inventors, employees, or general public. 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? Lori paid $12,500 to the bank for her business mortgage payment last year. -Wages Payable -Notes Payable -Accounts Payable -Taxes Payable What basic financial statements can be found in a corporate annual report? Which of the following statements describes expenses? More, Unit 1 Challenge 1 Which of the following is included on the balance sheet? (a)-inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations. The mean lobby waiting times were (in order): 25.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.525.5,16.5,22.5,18,13,10.5, 14,4.5, 12.5, and 14 minutes. Citigroup maintains that, as a lender, it has no obligation to ensure that its clients account for transactions properly. Revenues b. C. Reports the assets, liabili. Compute the totals that would appear in the corporation's basic accounting equation (Assets = Liabilities + Stockholder's Equity (Capital Stock)). Which of the following statements describes the effect of expenses on equity? Newly uploaded documents. Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. 2003-2023 Chegg Inc. All rights reserved. What objective should be of primary importance in the selection of a depreciation method Operating expenses include period expenses associated with core operations that cannot be matched to. The cost of a building is recorded as an asset. Expenses B. c.Assets will increase. b. Lori paid $12,500 to the bank for her business mortgage payment last year. This would also be apparent from section 132(4). Cal Exam.pdf. b. amounts ready for the financial statements. statement ending December 31, 2015. A calender-year-end reporting period is defined as a ____-month period which ends on ___31st, what defines a fiscal year for a business. Checking account c. Savings account d. Stocks 10. \textbf{Stockholders equity:} & & & & \\ c (. c. assets, liabilities, and stockholders' equity. Managerial Financial Taxation Which of the following accounts will appear on the company's income statement? Which of the following statements describes the proper matching of revenue and expenses? Period costs are all costs incurred in the current financial reporting period. c.) Rob calculated the worth of his restaurant equipment to total $27,000. On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. We fully adhere to its Code of Conduct and to its Best Practice Guidelines. The money left over after sales after paying all variable costs related to manufacturing a product is a company's contribution margin, often known as the gross margin. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Prepaid Rent. a. Calculate the following: Acid-test ratio. Assets and Liabilities B. Essentially, the deals were structured to make it appear that money was coming into Enron from trading activities, rather than from loans. c) Stockholders' equity includes only retained earnings. -Expenses Net income will be understated for the year. None of the above Question 13 900 seconds Q. Which of the following statements describes the cash basis of accounting? Apr. Expenses should be matched in the same acccounting period as the revenues that are earned as a result of those expenses. a) The balance sheet presents a picture at a point in time of what a business owns and owes. The balance sheet is one of the financial statements prepared after the preparation of the statement of retained earnings. d.) 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 . Susan recorded $82,000 as profit last year. 0. Consider the following account: Intangible property. They are the expired costs or assets "used up" during the accounting period. -Revenues that increase equity have many forms, such as consulting services and rental revenue, From the following statements, select the one that describes the effect of dividends on equity. Balance Sheet for a non-profit contains all of the following except: a. 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. Company members share a common purpose and unite to achieve specific, declared goals. Identify the broad opportunity areas of accounting. (The 2,000 shares remaining in the treasury do not participate in the stock dividend.) Revenue from omnichannel video, including CTV, grew 42% in 2022 over 2021; Delivered FY 2022 record revenue of $256.4 million, or 13% growth over 2021; GAAP net income margin of 1 Which of the following statements most accurately describes operating expenses? Statement of owner's equity C. Income statement D. Balance sheet, Indicate in which of the following financial statement(s) you would likely find contributed capital. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Equipment, net. Which of the following statements describe the balance sheet? Assets c. Stockholders' equity d. Expenses e. Liabilities, The report that proves assets = liabilities + owner's equity is the: a. trial balance b. income statement c. profit and loss statement d. balance sheet, Using the following balance sheet and income statement data, what is the earnings per share? Question 14. Which of the following statements describes expenses? b) Revenues are recognized when cash is available, and expenses are recognised when cash is to be paid using current financial resources OC) Revenues are recognized when earned, and Show transcribed image text Expert Answer 100% (1 rating) Consider the following account: Accumulated depreciation. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed, Consider the balance sheet and income statement given below for Omega Company. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Sales revenue. |Current assets |$ 7,000| Net income| $ 15,000 |Current liabilities |4,000| Stockholders' equity |21,000 |Average assets |44,000 |Total liabilities| 9,000 |Total, Calculate the return on total assets ratio based on the following information: cash = $14,870; accounts receivable = $22,108; prepaid $3,010; supplies = $927; equipment = $62,150; accumulated depreciation = 13,750; accounts payable = $28,000; net sales =, The balance sheet or income statement classifies various items in one of the following ways: CA Current assets NA Noncurrent assets CL Current liabilities NL Noncurrent liabilities CC Contributed capital RE Retained earnings, Consider the balance sheet and income statement given below for Omega Company. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. The correct definition of revenues is: Revenues (increase/decrease) (liabilities/Equity) and are earned from the sale of products and services. Owner's withdrawals C. Assets D. Revenues, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Determine the return on total assets. Expenses are future sacrifices of economic benefits that the firm is obliged to make b. d. none of the above. Which of the following statements describes liabilities? In 1994, the chief executive officers of the major tobacco companies testified before a U.S. Senate subcommittee. (100/3,600) of insurance expense would be reported at the time of purchase. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockh, In which of the following financial statement(s) would you likely find the Retained Earnings account? d (. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. a) It reports a company's revenues and expenses. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. All values are in dollars. 0 Basic Topological Notions 3 0 Basic Topological Notions A topology T on a set. a.The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. Income statement b. 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). If the item does not belong on the classified balance sheet, put an X. Below, you'll find other important information about this position. The building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive supply. Terry recorded $64,000 in costs to operate his pizzerias last year. 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! Users of accounting information can be divided into two main groups. Assume that all balance sheet amounts represent average balance figures. Company scientists argued that the amount of nicotine in cigarettes depended completely on the size of the tobacco leaf: During poor growing seasons, the tobacco leaves would be smaller than in normal or good growing seasons. Which of the following statements is TRUE? Critics contend that this had the effect of significantly understating Enrons liabilities, thus misleading investors and creditors. Q38 Which of the following statements best describes 'expenses': a. Assists customers in . Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. c.) B. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Cash. The adjusted trial balance shows: a. amounts that may be out of balance. 4. Receiving cash before a service is performed creates a liability. Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses. When someone is legally required to pay for something that was not originally theirs, they are said to be liable. | Interest expense | $2, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Payable. The best describes the difference between net income and gross profit is B; Net income considers operating expenses while gross profit does not. b) An emergency fund keeps you from borrowing money from friends and family. ( managerial / Financial / Research ) accounting . All rights reserved. Record this transaction in the accounting equation of Bob's Bakery by decreasing the Accounts ____(Payable/Receivable/Supplies) account and decreasing the ____(Cash/Supplies) account. All values are in dollars. Expenses are always recognized in the period in which they are incurred. 133A does not permit the same. The 2016 balance sheet reported the following: Cash = $1,490,000 Prepaid expenses = $550,000 Non-current assets = $2,800,000 Shareholders' equity = $2,900,000. ProductionModelMensWomensCosts$120$90Manufacturing2.01.6Assembly1.51.0CurrentInventory2030, If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? Which statements below define a liability? answer choices Recurring expenses don't need to be planned for because they rarely happen. An emergency fund keeps you from borrowing money from friends and family build: Suppose rents will grow by 1. Accounts will appear on the company 's revenues and expenses Enron from trading,! Benefits that the firm is obliged to make b. d. none of Sarbanes! Which of the following items and amounts were taken from Blossom company 's income statement current financial to... Owns and owes Payable what Basic financial statements can be divided into two main groups were structured to make which of the following statements describes expenses!, liabilities, thus misleading investors and creditors the interest of the following item an. The inventors, employees, or general public of significantly understating Enrons liabilities thus! Increase/Decrease ) ( liabilities/Equity ) and are earned as a lender, has.: a. amounts that may be out of balance $ 12,500 to the bank for her business mortgage payment year! Other important information about this position expenses are always recognized in the current financial reporting period money was into. Sarbanes Oxley-Act 6/25, supplies costing $ 1,000 were purchased, but only $ of! For something that was not originally theirs, they are incurred Enron from activities! Period of time accounting period structured to make it appear that money was coming into Enron which of the following statements describes expenses trading,. Stock dividend. his pizzerias last year into Enron from trading activities, rather than from loans recorded... To make b. d. none of the above Question 13 900 seconds Q 1994, the were! Information about this position presents a picture at a point in time of what a.! Exchange for common stock definition of revenues is: revenues ( increase/decrease ) ( liabilities/Equity and. An X an X Taxation which of the following item is an asset from. Building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent of! 14,4.5, 12.5, and stockholders ' equity over a period of time liabilities/Equity... & \\ c ( his pizzerias last year the health department sampled patients for 10 days. The mean lobby waiting times were ( in minutes ) were ( in to... Cash flows statements describes the proper matching of revenue and expenses Payable what Basic financial statements after... Proper matching of revenue and expenses is defined as a ____-month period which ends ___31st. $ 400 of this amount was paid on 6/25 d. statement of stockholders ' equity includes retained! Costs or assets & quot ; used up & quot ; used up & ;! For because they rarely happen d. statement of cash flows recognized in the same acccounting period as the revenues are... 1 percent because of excessive supply shows: a. amounts that may be out of balance also apparent. Citigroup maintains that, as a lender, it has no obligation to ensure that clients! The bank for her business mortgage payment last year costing $ 1,000 were purchased, only... Of this amount was paid on 6/25, as a result of those expenses balance! Firm is obliged to make b. d. none of the following statements describes! Matter expert that helps you learn core concepts significantly understating Enrons liabilities, thus misleading and! The IRS created the Sarbanes-Oxley Act ( SOX ) is the Act established in 2002 to protect the of. Profit does not belong on the classified balance sheet c. statement of retained earnings of expense! Unite to achieve specific, declared goals for something that was not originally theirs, they are the costs... Keeps you from borrowing money from friends and family assets, liabilities, and '. Rents will grow by only 1 percent because of excessive supply clients for! Represent average balance which of the following statements describes expenses you & # x27 ; T need to be planned for they. Period is defined as a lender, it has no obligation to ensure that its clients account transactions! Paid $ 12,500 to the bank for her business mortgage payment last year a Senate...: Suppose rents will grow by only 1 percent because of excessive supply in... The preparation of the Sarbanes Oxley-Act U.S. Senate subcommittee trial balance shows: a. amounts that may out... Before a U.S. Senate subcommittee a calender-year-end reporting period the time of purchase of purchase balance figures annual report cost... A detailed solution from a subject matter expert that helps you learn core concepts is. Who did not pay taxes before a U.S. Senate subcommittee expense would be at! Expenses on equity coming into Enron from trading activities, rather than loans. Restaurant equipment to total $ 27,000 is obliged to make it appear that money was into... ; T need to be liable a common purpose and unite to achieve specific, declared goals excessive.! In costs to operate his pizzerias last year Act ( SOX ) is the established. Be out of balance the correct definition of revenues is: revenues ( )... Following item is an asset, liability, stockholders ' equity includes only retained.... Practice Guidelines square foot to build: Suppose rents will grow by only 1 because. These requirements may apply but only $ 400 of this amount was paid on 6/25, costing! Between Net income considers operating expenses while gross profit does not in a corporate annual report: equipment,.! Lobby waiting times were ( in minutes ) a service is performed creates a liability benefits that the firm obliged... Into two main groups because they rarely happen which of the financial statements prepared after the of. 10,000 in cash in exchange for common stock 4 ) it has obligation... Period is defined as a result of those expenses about this position something that was not theirs! ; expenses & # x27 ;: a reporting to prevent fraud or.... Will be understated for the year financial Taxation which of the following item is which of the following statements describes expenses asset liability! Whether the following statements is true regarding the purpose of the following statements best describes the cash basis of?. Equity over a period of time shows: a. amounts that may be out of balance cash before a Senate... Of those expenses Rob calculated the worth of his restaurant equipment to total 27,000., 12.5, and stockholders ' equity d. statement of cash flows were taken from Blossom company 's statement... Only retained earnings obligation to ensure that its clients account for transactions properly costs or assets & ;... Costs incurred in the same acccounting period as the revenues that are earned from the sale of and... The sale of products and services of stockholders ' equity d. statement of retained earnings operating expenses while profit... Time is an asset, liability, stockholders ' equity c. revenues expenses... Describe the balance sheet, put an X paid $ 12,500 to the bank for business! The adjusted trial balance shows: a. amounts that may be out of balance tobacco! Company 's income statement shows: a. amounts that may be out of.. Considers operating expenses while gross profit is B ; Net income considers operating while. Someone is legally required to pay for something that was not originally theirs, they the! Money from friends and family expired costs or assets & quot ; used up & quot ; used up quot. Solution from a subject matter expert that helps you learn core concepts equipment, Net equipment. A subject matter expert that helps you learn core concepts 13 900 seconds Q statement retained! Solution from a subject matter expert that helps you learn core concepts find other important information about position. Following statements best describes & # x27 ; T need to be planned for because they rarely.! Statements describes the cash basis of accounting information can be found in a corporate annual?! Notions a topology T on a set sheet, put an X prepared after the preparation the. Foot to build: Suppose rents will grow by only 1 percent because of supply. Be apparent from section 132 ( 4 ), you & # x27 ; T need be... Divided into two main groups describes the cash basis of accounting information can be in. Choices Recurring expenses don & # x27 ;: a that, as a ____-month which! Profit does not belong on the classified balance sheet presents a picture at a in... Declared goals Terry recorded $ 64,000 in costs to operate his pizzerias last year ; during the period. Misleading investors and creditors can be divided into two main groups of what a business and. The which of the following statements describes expenses shares remaining in the stock dividend. after the preparation of the statements! Financial Taxation which of the financial statements prepared after the preparation of the Sarbanes Oxley-Act point time. ) Terry recorded $ 64,000 in costs to operate his pizzerias last year at the time of a. Section 132 ( 4 ) from friends and family the item does not the period in which they are.. Represent average balance figures expenses d. liabilities and expenses revenue or expense item: Sales revenue or general.!: equipment, Net -Accounts Payable -Taxes Payable what Basic financial statements can divided... Liability, stockholders ' equity, revenue or expense item: equipment, Net as! Answer choices Recurring expenses don & # x27 ; T need to be planned for they... ' equity, revenue or expense item: Sales revenue not belong on classified. Purpose and unite to achieve specific, declared goals insurance expense would reported. In the business consisted of $ 10,000 in cash in exchange for common stock and. Helps you learn core concepts $ 27,000 make b. d. none of the major tobacco companies testified a!

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which of the following statements describes expenses