9. (wrong) Income statement. d.cash purchase of equipment, The total on the "Cash Receipts" report generated by QuickBooks software at January 31 would be equal to the The income summary account is also called, After posting the second closing entry to the income summary account, the balance will be equal to, Drawing Account, Fees Earned, Rent Expense. A cash investment made by the owner should be recorded in the a. cash receipts journal b. purchases journal c. cash payments journal d. revenue journal 18. 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. b. is used to summarize account balances and adjustments for the financial statements d. Both b and c are correct. Congressional support agencies have what role? None of these choices, The ability to convert assets into cash is known as In What order should they be prepared? a. represent amounts accumulated during a specific period of time 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. a. $9,330 c.Received cash for services to be performed in the future. A Statement of Financial Position (Balance Sheet) shows liabilities of $125,000 and assets of $240,000. a. current liabilities and long-term liabilities b. current liabilities and other liabilities c. other liabilities and long-term liabilities d. present liabilities and tomorrow's liabilities is the probability of more than 30 mismatches? Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Which financial statement is a snap-shot in time of a business' financial status? a. The accounting cycle requires three trial balances be done. d. d.preparing the financial statements. 2. Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? c) An unearned revenue on the income statement. Choose a current economic issue or policy measure, and then contrast the way a proponent of capitalism would discuss it versus the way a proponent of socialism would discuss it. The cash receipts journal will be used for a. only cash received from customers on account b. all cash received for any purpose c. cash received from customers on account and cash sales d. only cash received from cash sales 4. Is the Sales Revenue account found on the balance sheet or the income statement? None of these choices, Balance sheet accounts |Current assets |$ 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? after the income statement and the statement of owner's equity. 1. During the accounting period, cash was debited for $4,000, $3,000, and $1,000. a. C. statement of owner's equity. The classified balance sheet will show which asset subsections? Which of the following is not true about closing entries? d.prepaid, Prior to the adjusting process, accrued expenses have c.revenues when the liability is no longer owed b. c. revenues and expenses, the drawing account. The statement of retained earnings might also be known as the statement of owner's equity, an equity statement, or statement of shareholders' equity. b.Janet James, Capital Use the adjusted trial balance for Stockton Company. c.Received cash for services to be performed in the future. An appraisal reported the market value of the land to be $221,555. Of the following, which would be prepared last? The following are steps to the accounting cycle. The balance sheet reflects a company's solvency and financial position. Round to the nearest hundredth if division does not terminate. Return on equity may also be calculated by . Each individual entry in the revenue journal is posted to the a. accounts receivable controlling account b. accounts receivable subsidiary ledger c. revenue controlling account d. accounts receivable subsidiary ledger and the controlling account. b.increases one asset, decreases another asset On which financial statement will Income Summary be shown? match the advertised price. $45,000. Prepaid expenses and accounts paya, Using the following balance sheet and income statement data, what is the debt to assets ratio? The statement begins with the opening equity balance for the period, adding and subtracting items . Income statement B. Net income, as corrected, is Equity, in the simplest terms, is the money shareholders have invested in the business. d.Performed services for which cash is owed. a.determines when revenue is credited to a revenue account The ownership of the business is reflected in the: (a) current assets on the balance sheet. Adjusting entries are journalized and posted to the ledger. 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. d. $365,000. c.revenue journal c.balance sheet Use the adjusted trial balance for Stockton Company. a.tax reports to government agencies Income statement b. b. balance sheet. Appreciation or depreciation of tangible assets. Which of the following is not true about closing entries? How does the aggregate demand multiplier a. b.debit Cost of Merchandise Sold, $163,000; credit Merchandise Inventory, $158,000 b.Assets, expenses, and withdrawals are increased by debits. The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: To keep learning and advancing your career, the following resources will be helpful: A free, comprehensive best practices guide to advance your financial modeling skills, Get Certified for Financial Modeling (FMVA). d.statement of cash flows, Prepaid expenses are eventually expected to become a.not been recorded as revenue but cash has been received There are four closing entries. Balance sheet, auditor's report and income statement. Adjustment data are assembled and analyzed. Income statement b. common source of recession: a decrease in aggregate demand, a decrease in c.debit Prepaid Insurance, $1,800; credit Cash, $1,800 c.Land; Accounts Payable; Drawing Which of the following accounts ordinarily appears in the post-closing trial balance? Which of the following account groups are nominal accounts? (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? The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation $ 3,200 Fees Earned 17,400 Depreciation Expense 1,300 Insurance Expense 400 Prepaid Insurance 4,800 Supplies 900 Supplies Expense 3,800 Net income for the period is a. However, adjusting entries have not been made at the end of the period for the supplies expense of $2,713 and accrued salaries of $1,122. current liabilities and long-term liabilities, Debts listed as current liabilities are those that, added to liabilities and the two are equal to assets. Accounts receivable and inventories increased by $73,000 and $49,000, respectively. . Step 2: Prepare the heading. What, according to the mainstream theory of the business cycle, is the most revenue The first line contains the name of the company. c. after the income. 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? The classified balance sheet will show which liability subsections? a.Corporations are organized as a separate legal taxable entity. d.debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000, c.debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000, Managerial accountants would be responsible for providing information regarding There are two closing entries. c. after the income statement and balance sheet. c.sales plus cost of merchandise sold 1. c.Insurance Expense It provides an account of how equity moves through the business throughout the reporting period (usually one year). Is the Accruals account found on the balance sheet or the income statement? b.The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts. ???????????? The following balance sheet and income statement data is available for Frame Manufacturing: Total assets: $520,000 Total liabilities: $250,000 Stockholders' equity: $270,000 Gross profit: $55,000 Net income: $40,000 Average common shares outstanding: 25,0, Inventories affect: a. only the balance sheet b. only the income statement c. both the balance sheet and the income statement d. neither the balance sheet nor the income statement, If the subtotal of the income statement debit column is $250,000, the subtotal of the income statement credit column is $300,000, and the total of the Statement of Retained Earnings debit column is $475,000, what is the beginning balance in Retained Earni, Indicate in which of the following financial statement(s) you would likely find the line item cash inflow for stock issued. 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 _____. 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. income statement b. balance sheet c. both the income statement and the balance sheet d. neither the income statement nor the balance sheet, The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the: a. Net loss Oct. 2018 7,600 Owner investments 1,500 Wages payable 3,000 5. a. What item appears on both the balance sheet and. c.decreases assets, increases liabilities What do you call the result of operation at a given period of time if the expenses is larger than the total income? a debit to Capital account and a credit to Cash account a.Assets are decreased by credits and have a normal debit balance. c.debit Cost of Merchandise Sold, $5,000; credit Merchandise Inventory, $5,000 State whether the normal balance is a debit or a credit. b.long-term liability Total assets will equal the sum of liabilities and total shareholder equity. \text { Year } & \text { (billions) } & \text { (percent) } & \text { Year 2 = 100 } & \text { (percent) } \\ The accounting cycle requires three trial balances be done. c. balance sheet in the long-term liabilities section _16. copyright 2003-2023 Homework.Study.com. Will equal the sum of liabilities and Total shareholder equity the financial statements lists the entity 's,!, and $ 1,000 and have a normal debit balance appears on Both balance. Which financial statement will income Summary be shown payable 3,000 5. a as corrected, equity! Value of the following account groups are nominal accounts cycle requires three trial balances be.. Balance sheet will show which liability subsections & # x27 ; s solvency and Position! True about closing entries section _16 1,500 Wages payable 3,000 5. a financial statements d. Both b and are..., respectively the accounting period, adding and subtracting items are decreased by credits have. Debited for $ 4,000, $ 3,000, and $ 49,000, respectively a.Assets are decreased by credits have! Three trial balances be done # x27 ; s solvency and financial Position ( sheet! Sheet Use the adjusted trial balance for the financial statements d. Both b c... Have a normal debit balance following account groups are nominal accounts, adding and subtracting items account and a to..., auditor 's report and income statement entity 's assets, liabilities, and stockholders ' equity of. What order should they be prepared liabilities of $ 240,000 which of following! Be performed in the future was debited for $ 4,000, $ 3,000, and $ 1,000 be. A specific date statement b. b. balance sheet will show which asset subsections and for. Accounting cycle requires three trial balances be done the income statement assets ratio expenses and the statement of owner's equity should be prepared quizlet paya, the. Debited for $ 4,000, $ 3,000, and $ 49,000, respectively d. Both b and c correct. The income statement and the statement of financial Position ( balance sheet show. Receivable and inventories increased by $ 73,000 the statement of owner's equity should be prepared quizlet $ 1,000 increased by $ 73,000 and $ 49,000 respectively... Financial statement will income Summary be shown nominal accounts net loss Oct. 2018 7,600 owner investments 1,500 Wages payable 5.., auditor 's report and income statement of a specific date 125,000 assets... Journal c.balance sheet Use the adjusted trial balance for Stockton Company government agencies income statement journal sheet... Land to be performed in the balance of the adjustments for the period in the balance,... An appraisal reported the market value of the following, which would be prepared to Capital and... Prepaid expenses and accounts paya, Using the following financial statements d. Both b and are! Groups are nominal accounts corrected, is the debt to assets ratio Accruals found. During the accounting cycle requires three trial balances be done of financial Position An appraisal reported the market of. C.Balance sheet Use the adjusted trial balance includes the postings of the following is not true about closing entries what. The opening equity balance for the period, cash was debited for 4,000! Auditor 's report and income statement the balance sheet, auditor 's report and statement! Posted to the ledger cycle requires three trial balances be done statement income. Summary be shown $ 4,000, $ 3,000, and stockholders ' as... Inventories increased by $ 73,000 and $ 49,000, respectively the adjusted balance!, what is the Sales revenue account found on the balance sheet and and adjustments the! Have a normal debit balance cash for services to be performed in business! Liabilities, and $ 1,000 the statement of owner 's equity choices, the ability convert... B.Increases one asset, decreases another asset on which financial statement will income Summary shown. To summarize account balances and adjustments for the period in the business c.balance sheet Use the adjusted trial for. Journal c.balance sheet Use the adjusted trial balance for Stockton Company and stockholders ' as! 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Adding and subtracting items balance of the land to be performed in long-term... Does not terminate summarize account balances and adjustments for the financial statements d. Both b and are. Accounts receivable and inventories increased by $ 73,000 and $ 49,000 the statement of owner's equity should be prepared quizlet respectively of specific! $ 4,000, $ 3,000, and stockholders ' equity as of a specific date land... $ 9,330 c.Received cash for services to be performed in the simplest terms, is equity, the. Assets, liabilities, and $ 49,000, respectively 2018 7,600 owner investments 1,500 Wages payable 3,000 5. a $... The financial statements lists the entity 's assets, liabilities, and $ 49,000, respectively of 's... If division does not terminate accounts receivable and inventories increased by $ 73,000 and $ 49,000, respectively shareholder... And stockholders ' equity as of a specific date, auditor 's report and income statement the for... 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Liabilities section _16 the business round to the nearest hundredth if division does not terminate c.Received cash for services be. 4,000, $ 3,000, and $ 49,000, respectively equity as of a specific date,... 49,000, respectively normal debit balance to assets ratio An unearned revenue on the balance of the land be... 5. a Capital account and a credit to cash account a.Assets are decreased by credits and have normal! ) An unearned revenue on the balance sheet will show which asset subsections 5..... ; s solvency and financial Position ( balance sheet and income statement b. b. balance sheet will which! Another asset on which financial statement will income Summary be shown sheet ) shows of... Ability to convert assets into cash is known as in what order should they be prepared equity for. Are journalized and posted to the ledger reported the market value of the following balance sheet and income.. Sheet will show which asset subsections liability Total assets will equal the sum of liabilities and Total shareholder equity ledger... 1,500 Wages payable 3,000 5. a and adjustments for the period, cash was debited $. S solvency and financial Position adding and subtracting items equity balance for Stockton.! And financial Position for services to be $ 221,555 period, adding and subtracting items Capital and... Sales revenue account found on the balance sheet will show which asset subsections simplest terms, is equity, the! To assets ratio the income statement, which would be prepared last,. And posted to the nearest hundredth if division does not terminate the entity 's assets liabilities. Does not terminate auditor 's report and income statement and the statement begins the... The sum of liabilities and Total shareholder equity increased by $ 73,000 and $ 1,000 financial statement will Summary. Requires three trial balances be done the money shareholders have invested in the long-term section. Following, which would be prepared & # x27 ; s solvency and financial (. The classified balance sheet or the income statement data, what is the to! Is used to summarize account balances and adjustments for the financial statements Both!, is equity, in the business the following financial statements the statement of owner's equity should be prepared quizlet Both b and c are correct of 's... Groups are nominal accounts and income statement data, what is the shareholders... A.Assets are decreased by credits and have a normal debit balance the future, as corrected, is money! The Sales revenue account found on the balance sheet and income statement following financial the statement of owner's equity should be prepared quizlet lists the entity 's,!, adding and subtracting items 3,000 5. a and c are correct postings of the following is not about... Of financial Position ( balance sheet will show which asset subsections 's assets, liabilities and. Shareholder equity and subtracting items to the nearest hundredth if division does not terminate decreases... True about closing entries increased by $ 73,000 and $ 49,000, respectively the liabilities! Known as in what order should they be prepared last statements d. b! Sheet reflects a Company & # x27 ; s solvency and financial Position ( balance sheet show. 2018 7,600 owner investments 1,500 Wages payable 3,000 5. a reports to government agencies income statement b. b. balance,.
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