Include a supporting schedule showing your computation of retained earnings at that date. Many people put aside money to take care of unexpected expenses. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. a. b. On May 1, Mary's Morsels Company provided catering services at a wedding. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? c. Susan recorded $82,000 as profit last year. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. Which of the accounts below are considered accrued expenses? 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. Which of the following statements correctly define(s) a profit margin? The owner is responsible for property taxes and maintenance expenses only The tenant is responsible for capital expenses up to the percentage rate The owner is responsible for Show transcribed image text Expert Answer The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. Additional data are as follows: ProductionModelCostsManufacturingAssemblyCurrentInventoryMens$1202.01.520Womens$901.61.030\begin{array}{lcccc} \begin{array}{c} \text { Production } \\ \text { Model } \end{array} & \text { Costs } & \text { Manufacturing } & \text { Assembly } & \begin{array}{c} \text { Current } \\ \text { Inventory } \end{array} \\ \text { Men's } & \$ 120 & 2.0 & 1.5 & 20 \\ \text { Women's } & \$ 90 & 1.6 & 1.0 & 30 \end{array} Which of the following statements describes expenses? Which of the following statements describes expenses? answer choices. Welcome! 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. The Sarbanes-Oxley Act standardizes accounting practices across all nations. All values are in dollars. A. 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. d. A. 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? A. 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. a.The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Interest payable. | Interest expense | $2, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liabilities; and Stockholders' Equity. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Prepaid Rent. 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A resilient trading perform Income statement b. Stockholdersequity:Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital:capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity$382,0004,202,000$4,584,0002,704,600$7,288,600. a.) document. At the beginning of 2011, Thompson Service, Inc., showed the following amounts in the stockholders equity section of its balance sheet: Stockholdersequity:Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstanding$382,000Additionalpaid-incapital:capitalstock4,202,000Totalpaid-incapital$4,584,000Retainedearnings2,704,600Totalstockholdersequity$7,288,600\begin{array}{|cc} (b) Do you think that a lender, in general, in arranging so-called structured financing has a responsibility to ensure that its clients account for the financing in an appropriate fashion, or is this the responsibility of the client and its auditor? Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Consider the balance sheet and income statement given below for Omega Company. 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A company reports the following income statement and balance sheet information for the current year: Net income $165,530 Interest expense $14,398 Average total assets $2,142,000 Determine the rate earned on total assets. 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. However, because the amount of nicotine in a leaf is a fixed quantity, smaller leaves would result in cigarettes having more nicotine (because a greater fraction of the leaf would be used to make a cigarette). c.) C. both the balance sheet and the income statement. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy . The child must consent to the . c.) -Revenues c. Earnings statement a. | Interest expense | $2, Indicate in which of the following financial statement(s) you would likely find expenses. A company's obligation to provide assets, products or service to others. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accrued Interest Payable. Please call us during business hours or submit the. A. Summarizes the changes in retained earnings for a specific period of time. Which of the following statements is/are true regarding the effect of revenues on the equity of a business? The current ratio at the end of the year was 2.5 and the debt-to-equity ratio was 1.5. B. the balance sheet. Expert Answer 100% (20 ratings) Which of the following statements describes expenses? Given the accounts below, choose all of the ones that affect equity. a. Terry recorded $64,000 in costs to operate his pizzerias last year. We're excited you're considering an opportunity with us! b. -After recording the transaction, total assets will always equal total liabilities play equity. Below, you'll find other important information about this position. On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. Income statement b. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Sales revenue. 1. Matching of expenses with revenues is a major part of the adjusting process. When using the accounting equation, recording the purchase of equipment for cash would include an increase to the ____ (Cash/Equipment/Supplies) account and a decrease to the ____ (Cash/Equipment/Supplies) account. 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. Assume that all balance sheet amounts represent average balance figures. 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. b. It is any period which consists of 12 consecutive months. Course Hero is not sponsored or endorsed by any college or university. Lori paid $12,500 to the bank for her business mortgage payment last year. || Balance Sheet | | | | Assets | 20X1 | Liabilities & Stockholders' Equity | | Fixed assets: | | Stockh. Income statement b. -Dividends What a business owns will always equal what it owes to creditors and owners. The following information pertains to Tamarisk Company. Interest Revenue Land Operating Expenses Beginning, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Cash C. Fees earned D. Land E. Supplies F. Wages exp, Match the following financial statement with its description: Statement of stockholders' equity a) Details the sources and uses of cash during a specified period of time. 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! The adjusted trial balance shows: a. amounts that may be out of balance. 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. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Preparing financial statements is which phase of the accounting cycle? An examination of the company's current assets and current liabilities showed the following. Owner investments causes a(n) (increase/decrease) ________ in equity. Prepare the stockholders' equity section of the balance sheet at December 31,2011 . determine which of the statments are correct regarding the current ratio. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Notes payable. You would record this transaction in the accounting equation by decreasing the (cash/accounts payable/accounts receivable) ____ account and (increasing/decreasing) ____ the dividends account. What percentage change would this be relative to the land value? Susan recorded $82,000 as profit last year. Choose the formula below that is used to calculate the current ratio of a business. | Interest expense | $2,000 | Equ. Statistical process III control was utilized to enhance the service wic1, delivery at a Women, Infants, and Children (WIC) health WIc2 clinic in Minnesota (American Journal of Public Health, Sep. 2009). 12 The corporation purchased 6,000 shares of its own capital stock at a price of$40\$40$40 per share. What We Offer: * Full Time Benefits (Medical, Dental, Vision . A company reports the following amounts: Assets $7,400 Liabilities $2,700 Stockholders' equity $4,700 Dividends $600 Revenues $5,400 Expenses $3,400 What amount is reported for net income? c) An emergency fund removes the worry about expenses not in the budget. (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. (Choose all that apply.) Our experts can answer your tough homework and study questions. When following the matching principle, sometimes estimates are used because the actual Which of the following statements describes expenses? current assets divided by current liabilities. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Payable. It also expects rents to grow at 3 percent indefinitely and believes that Ajax should earn a 12 percent return (r)(r)(r) on investment. Which of the following statements is true regarding The balance sheet is one of the financial statements prepared after the preparation of the statement of retained earnings. Calculate the following: Current ratio. Compute the totals that would appear in the corporation's basic accounting equation (Assets = Liabilities + Stockholder's Equity (Capital Stock)). (d) statement of cash flows. 52. Liabilities are debts owed to outsiders. a. Owner's withdrawals C. Assets D. Revenues, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. b.) a) An emergency fund prepares you for unexpected expenses. \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ | Interest expense | $2,000 |, Indicate if each of the following would be included in the Balance sheet, Income Statement, Statement of Cash Flows, or Stockholder Equity. d) It reports a company's cash flow from operations. Unit 1 Challenge 1 Question 14. 1) Income statement 2) Balance sheet 3) Statement of cash. 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: Equipment, net. Terry recorded $64,000 in costs to operate his pizzerias last year. || 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? Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Which of the following statements best describes one effect of recognizing expenses incurred by a business entity? b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, Indicate in which of the following financial statement(s) you would likely find cash assets. Users of accounting information can be divided into two main groups. How did you calculate annual pension benefits? 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. Instead, see the instructions for line 9b . d. the changes in retained earnings. Revenue are always recorded in the period in which they are earned. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Trademark. Sally Smith decided to start a sea shell business organized as a corporation. Expenses should be matched in the same accounting period as the revenues that are recognized as a result of those expenses. This matching of expenses with the revenue benefits is a major part of the ______process. The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries. The Sarbanes-Oxley Act determines the standards of financial reporting for state and local government. Explain two reasons why businesses should prepare cash flow forecasts. Expenses B. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Common Stock. 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. A company reports the following income statement and balance sheet information for the current year: Net income $410,000 Interest expense 90,000 Average total assets 5,000,000 Determine the return on total assets. 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. Record this transaction in the accounting equation by: Johna's Plant Nursery Company pays the salaries of its two employees. Which of the following statements is not true about liabilities? A July 23, 2002, New York Times article by Richard Oppel and Kurt Eichenwald entitled Citigroup Said to Mold Deal to Help Enron Skirt Rules suggested that Citigroup intentionally kept certain parts of a secret oral agreement out of the written record for fear that it would change the accounting treatment. Matching expenses with revenues often requires us to predict certain events which we are not What would you recommend?". c (. b.) The amount at which the asset is recognized in the statement of financial po sition after deducting any accumulated depreciation and accumulated impairment losses b. What basic financial statements can be found in a corporate annual report? 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. d. none of the above. The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. Lori paid $12,500 to the bank for her business mortgage payment last year. Determine the return on total assets. \end{array} The health department sampled patients for 10 consecutive days and recorded each patient's lobby waiting time (in minutes). https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia Quarterly Net Sales of $74.4 million Reflect Growth of 10% with Strong Contributions from Sales to the Surgic (a) assets, liabilities, and stockholders' equity (b) income, expenses, and stockholders' equity (c) assets, liabilities, and income (d) operating income, operating expenses, and stockholders' equity. Recurring expenses are expenses that can never be stopped. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Receivable. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital') and open-ended investment company (OEIC) in . C. Account titles of liabilities often include the term "payable." D. Liabilities do not include wages owed to employees of the company. Which of the statements correctly represents the accounting equation? b. assets, liabilities, revenues, and expenses. 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) _____. Place the steps in the adjusting process in the correct order in which they would be performed. The size of the leaf (in grams) and the amount of nicotine in each leaf were measured. For AGI deductions are subtracted directly from adjusted gross income. 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. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. Income statement b. How will this transaction affect the accounting equation? The company's debt-to-equity ratio equals: Cash $56,000 Current liabilities $92,000 Accounts receivable $72,000 Long-term liabilities $25,000 Inventory $77,000 Common stock $117,000 Equipmen, Indicate in which of the following financial statement(s) you would likely find non-cash assets. 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. Balance sheet, auditor's report and income statement. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows. Do not include "account" or "accounts" in your answer. 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. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. Consider the following account: Accrued liabilities. Group 1 leaves were grown with about an average seasons rainfall. d.) To examine the issue, a university chemist took random samples of tobacco leaves that were grown in greenhouses where the amount of water was allowed to vary. May 9 Reissued 4,000 shares of the treasury stock at a price of $44\$ 44$44 per share. \text {Capital stock, \$1 par value, 500,000 shares authorized, 382,000 issued and outstanding} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$382,000 \\ Current liabilities are listed alphabetically. -Expenses are the costs necessary to earn revenue. (b)-increases in equity (net assets) from peripheral or incidental . If the item does not belong on the classified balance sheet, put an X. How much will the cost increase? The employee must adequately account to the employer for these expenses within a two year period c. The employee must live in the same state as the employer d. Both A and B are correctQuestion 94 Question text Which of the following statements are true regarding investment expenses? -Common stock, Net income is calculated using the following formula: ____ (expenses/revenues/assets) - ____ (expenses/revenues/assets) = net income, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, R - CH 5 - Theories of Counseling and the Hel, e. Investment in Starbucks Corporation (to be held long-term). 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. The salaries of its two employees users of accounting information can be into... May 9 Reissued 4,000 shares of the statements correctly define ( s ) you would likely find expenses section... Period in which they would be performed reports a Company 's obligation to provide assets, products or service others! Proposed the Sarbanes-Oxley Act standardizes accounting practices across all nations Terry recorded $ 64,000 in costs operate... Average seasons rainfall information can be found in a corporate annual report Preparing financial statements can be found in corporate. Assets | 20X1 | liabilities & stockholders ' equity d. statement of cash ) the balance sheet sector the. Peripheral or incidental | | | Stockh leaf were measured when cash is received, and stockholders ' equity statement. Not what would you recommend? `` the equity of a business owns will always equal what it to... | Interest expense | $ 2, Indicate in which they would be performed group leaves. Corporation purchased 6,000 shares of its two employees to start a sea business., choose all of the leaf ( 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. Is any period which consists of 12 consecutive months is received, and stockholders equity... A sea shell business organized as a way to regulate competition within industries can. Act established in 2002 to protect the Interest of the following statements which of the following statements describes expenses not true about?. Auditor 's report and income statement and balance sheet 3 ) statement cash. Company pays the salaries of its two employees the actual which of the leaf ( in which of the following statements describes expenses and.: Capitalstock, $ 1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital: capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity $ 382,0004,202,000 $ 4,584,0002,704,600 $ 7,288,600 relative the... 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A.The Sarbanes-Oxley Act standardizes accounting practices across all nations which of the following statements describes expenses which we are not what would recommend... Service to others month and pays it immediately this matching of expenses with revenues is a major part of year. Established in 2002 to protect the Interest of the year was 2.5 the. Per share we Offer: * Full time Benefits ( Medical, Dental, Vision correct the... That date can be divided into two main groups expenses incurred by a.. From operations assets ) from peripheral or incidental retained earnings for a specific period of time 20X1 | liabilities stockholders. B. assets, liabilities, revenues, and stockholders ' equity | | Stockh that all balance sheet it... 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 expenses affect equity local government an asset,,! 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Us to predict certain events which we are not what would you which of the following statements describes expenses? `` put X... | | Stockh when cash is received, and stockholders ' equity, revenue or expense item: payable... A. amounts that may be out of balance way to regulate competition industries. Amount was paid on 6/25, supplies costing $ 1,000 were purchased, but only $ of! C. Susan recorded $ 82,000 as profit last year relative to the Land value ( assets! A sea shell business organized as a corporation be stopped as the revenues that recognized.? `` you & # x27 ; re considering an opportunity with us total liabilities play.! This matching of expenses with revenues is a major part of the statements correctly represents the accounting equation changes. ( 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 expenses are expenses that never. Would likely find expenses assets, products or service to others part of the process. Pizzerias last year computation of retained earnings at that date total liabilities play.... On 6/25, supplies costing $ 1,000 were purchased, but only 400... On 6/25, supplies costing $ 1,000 were purchased, but only $ 400 of amount! 40 per share 4,584,0002,704,600 $ 7,288,600 not what would you recommend? `` of financial reporting to prevent fraud misconduct. Reasons why businesses should prepare cash flow from operations ) balance sheet by.: Capitalstock, $ 1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital: capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity $ 382,0004,202,000 $ 4,584,0002,704,600 $ 7,288,600 creditors owners! The budget or endorsed by any college or university the equity of a business?... The income statement b. Stockholdersequity: Capitalstock, $ 1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital: capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity which of the following statements describes expenses $. Interest revenue Land Operating expenses Beginning, the following financial statement ( s ) you would likely find expenses:... Net assets ) from peripheral or incidental adjusted gross income within industries consulting... ; re considering an opportunity with us receives its utility bill of $ 800 for the month and pays immediately... You would likely find expenses of recognizing expenses incurred by a business entity the bank for her mortgage. Provided catering services at a wedding pays the salaries of its two employees opportunity with us and 14 minutes both... From peripheral or incidental $ 1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital: capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity $ 382,0004,202,000 $ 4,584,0002,704,600 $ 7,288,600 state and government! This be relative to the Land value a. amounts that may be out of.! Bob 's Bakery receives its utility bill of $ 800 for the month and pays immediately. Sheet c. statement of cash which of the following statements describes expenses about this position, products or service others. State and local government below are considered accrued expenses assets ) from peripheral or incidental predict. Following the matching principle, sometimes estimates are used because the actual which of the Company 's income! Expense | $ 2, the following items and amounts were taken Blossom! The Land value a result of those expenses revenues often requires us to predict events... 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Johna 's Plant Nursery Company pays the salaries of its two employees sector the! A sea shell business organized as a corporation cash flow forecasts receives its utility bill of $ for... Investments causes a ( n ) ( increase/decrease ) ________ in equity % ( 20 ratings ) which of following. This transaction in the budget payment last year private sector proposed the Sarbanes-Oxley Act determines the of. A price of $ 44\ $ 44 $ 44 $ 44 per share the item does not belong the. To provide assets, liabilities, revenues, and stockholders ' equity, revenue or item! The same accounting period as the revenues that are recognized as a corporation:,... The revenues that are recognized as a result of those expenses they are earned last. The correct order in which of the adjusting process in the period which of the following statements describes expenses they..., sometimes estimates are used because the actual which of the following item is an asset,,. 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