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. https://www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia c. Consider the following account: Unearned subscription revenues. Which of the following statements most accurately describes financial accounting's view of period costs? What is gross profit? d. the changes in retained earnings. Expenses should be matched in the same acccounting period as the revenues that are earned as a result of those expenses. Consider the balance sheet and income statement given below for Omega Company. Given the following list of accounts, identify which are classified as liabilities. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. Multiple Choice Insurance premiums cover specific periods and are charged to expense when they are paid. Stockholders' equity will be overstated at year-end. The Paris Peace Conference was the formal meeting in 1919 and 1920 of the victorious Allies after the end of World War I to set the peace terms for the defeated Central Powers.Dominated by the leaders of Britain, France, the United States and Italy, it resulted in five treaties that rearranged the maps of Europe and parts of Asia, Africa and the Pacific Islands, and also imposed financial . Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Interest payable. -Salaries expense will be increased. a. c.) Lori paid $12,500 to the bank for her business mortgage payment last year. To apply to this position and be considered, click the Apply button located above this message and complete the application in full. In every financial statement, there exists single and double underlines. Which of the following statements describes expenses? c.) Terry recorded $64,000 in costs to operate his pizzerias last year. 4. Record this transaction on May 1 in the accounting equation of Mary's Morsels by: Increasing accounts receivable and increasing revenue. Dan and Den, Inc. reports the following assets and liabilities. Cal Exam.pdf. Reports the changes in assets, liabilities, and stockholders' equity over a period of time. Select one: a. What would land value be now? | 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. A. The college paid immediately. Companies take various forms, such as: voluntary associations, which may include nonprofit organizations . Given the statements below, choose the most accurate definition of dividends. a.) C. Account titles of liabilities often include the term "payable." D. Liabilities do not include wages owed to employees of the company. Jan. 3 Declared a dividend of $1 per share to stockholders of record on January 31, payable on February 15. Consider the following account: Accrued liabilities. Expenses B. More, Unit 1 Challenge 1 At the present time, Ajax believes that the site could support a 300,000 rentable square foot project with average rents of 20 dollars per square foot and operating expenses equal to 40 percent of that amount. a. recurring expenses don't need to be planned for because they rarely happen. Balance sheet C. Income statement D. Statement of owner's equity, Current asset section of the GTD balance sheet consists of cash, accounts receivable, and prepaid expenses. c.) Terry recorded $64,000 in costs to operate his pizzerias last year. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows, An income statement does which of the following? Which of the following statements is not true about liabilities? -Dividends Sally Smith decided to start a sea shell business organized as a corporation. | Interest expense |. The cost (or an amount substituted for cost) of the asset less its residual value b. The size of the leaf (in grams) and the amount of nicotine in each leaf were measured. \text{Total paid-in capital } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$4,584,000\\ c. assets, liabilities, and stockholders' equity only. c. Susan recorded $82,000 as profit last year. B. Ajax Investment Company is considering the purchase of land that could be developed into a class A office project. Test to determine whether the leaf sizes differ between the three groups. Understand what a balance sheet is, learn what a balance sheet shows, examine its format, and see an example of a balance sheet. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. None of the above Question 13 900 seconds Q. If you completed Part III, don't include in column (d) any benefits shown on line 28. Scout24 reaches the upper end of its 2022 annual guidance and expects growth to continue in 2023. The Sarbanes-Oxley Act standardizes accounting practices across all nations. Income statement b. One of the accusations made was that tobacco firms added nicotine to their cigarettes, which made them even more addictive to smokers. Consider the following account: Retained earnings. b.) Income statement b. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. Use the format illustrated in Exhibit 12-6. Explain two reasons why businesses should prepare cash flow forecasts. 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. . Tell whether each of the following items would appear on the income statement, statement of changes in shareholders' equity, balance sheet, or statement of cash flows. Identify whether the following item is an asset, liability, stockholders' equity, revenue or expense item: Common stock. Which of the following statements describes expenses? Total debits to expense accounts should be equal total credits to revenue accounts. Which of the following statements best describes one effect of recognizing expenses incurred by a business entity? Use the following categories: Current Assets; Long-term Investments; Property, Plant, and Equipment; Intangible Assets; Current Liabilities; Long-term Liabilities; and Stockholders' Equity. b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date. | Interest expense | $2, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. This matching of expenses with the revenue benefits is a major part of the ______process. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Sales. 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} Produce an individual professional report where ratio and cash flow analysis is performed to evaluate the current and past performance of the company and its sustainability in the . a) The balance sheet reports the revenue and expenses for a specific period of time. A. Current liabilities are listed alphabetically. | Interest expense | $2,000 | Equ. -Wages Payable -Notes Payable -Accounts Payable -Taxes Payable Assume that all balance sheet amounts represent average balance figures. 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. All rights reserved. Privacy Statement, Stuvia is not sponsored or endorsed by any college or university, Also available in package deal from $105.48, Pennsylvania State University - All Campuses, Rutgers University - New Brunswick/Piscataway, University Of Illinois - Urbana-Champaign, Essential Environment: The Science Behind the Stories, Everything's an Argument with 2016 MLA Update, Managerial Economics and Business Strategy, Primates of the World: An Illustrated Guide, The State of Texas: Government, Politics, and Policy, IELTS - International English Language Testing System, TOEFL - Test of English as a Foreign Language, USMLE - United States Medical Licensing Examination, Sophia Accounting Fundamentals UNIT 1 CHALLENGE 1: Overview of Accounting, Sophia Pathways Accounting Milestones with Answers Exam Study Guide Revisions, Updated Study Guide, Correctly Answered Questions, Test bank Questions and Answers with Explanations (latest Update), 100% Correct, Download to Score A, Sophia Over 300 Documents Various Topics Milestones Bundle, Questions with Complete Answers, Sophia Accounting Fundamentals UNIT 1 CHALLENGE 1: Overview of Accounting. Stockholdersequity:Capitalstock,$1parvalue,500,000sharesauthorized,382,000issuedandoutstandingAdditionalpaid-incapital:capitalstockTotalpaid-incapitalRetainedearningsTotalstockholdersequity$382,0004,202,000$4,584,0002,704,600$7,288,600. Please call us during business hours or submit the. Financial reporting standards for state and local government are determined by the, governing body known as __________, while international standards are compiled in. The current ratio at the end of the year was 2.5 and the deb, The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. June 1 Declared a 5 percent stock dividend to stockholders of record at June 15 , to be distributed on June 30 . Balance Sheet for a non-profit contains all of the following except: a. d.) Place the steps in the adjusting process in the correct order in which they would be performed. Which of the following is included on the balance sheet? This would also be apparent from section 132(4). Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Supplies expense. 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 Reporting Kyle matched expenses with revenue earned in the current period. -the Accounts Payable account will be increased. 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. Watch the full episode on Rumble or listen to the podcast on SpotifyIt is the one-year anniversary of the Russian invasion of Ukraine and the decision by the U.S. and its NATO allies to treat the war as its . Determine the amount that should appear on the balance sheet as the total current assets: Cash $ 25,000 Short-Term Investments 10,000 Accounts Receivable 20,000 Allowance for Uncollectible Accounts 50. Instructions Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders. The Sarbanes-Oxley Act develops and enforces secur. which of the following statements descibes why accrual accounting better reflects a business's performance? | Interest expense |. 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). Calculate the following: Current ratio. Which statements below define a liability? We're available through e-mail, live chat and Facebook. 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) Part A Reformatted Financial Statements and Financial Analysis Based on the same company chosen in the group assignment, reformat the company's financial statements for the past five years in an excel spreadsheet. The company's current ratio at the end of the year was 2.5 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. b.) Correct answers: 1 question: Which of the following describes an expense? The following information pertains to Tamarisk Company. b. Course Hero is not sponsored or endorsed by any college or university. Apr. always able to do. A company reports the following income statement and balance sheet information for the current year: Net income $125,000 Interest expense 25,000 Average total assets 2,000,000 Determine the rate earned on total assets. c.Assets will increase. 521. Long-term liabilities are listed after Stockholders' Equity. The health department sampled patients for 10 consecutive days and recorded each patient's lobby waiting time (in minutes). a.) How did you calculate annual pension benefits? What basic financial statements can be found in a corporate annual report? B. Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. a. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. All values are in dollars. From AGI deductions are generally preferred over deductions for AGI. Income statement B. The 2016 balance sheet reported the following: cash, $1,490,000; prepaid expenses, $550,000; noncurrent assets, $2,800,000; and shareholders' equit. a) The balance sheet presents a picture at a point in time of what a business owns and owes. Record this transaction in the accounting equation for Russell's consulting service by: Increasing both cash and accounts receivable; and increasing revenues. May 9 Reissued 4,000 shares of the treasury stock at a price of $44\$ 44$44 per share. 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? The income statement describes a company's revenues and expenses along with the resulting net income or loss over a period of time due to earnings related activities. level. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Retained Earnings. 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. Revenues and expenses B. The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes. Capital expenditures budget b. They are the expired costs or assets "used up" during the accounting period. \text {Total stockholders equity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$7,288,600\\ It restricts accounting errors and fraudulent financial activities. Three different groups of tobacco leaves were grown. Liabilities are debts owed to outsiders. Answer these questions about your completed spreadsheet. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Accounts Payable. The expenses must have a business connection b. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. an accounting system that uses the matching principle to determine when to recognize revenues, which of the following statements best describes the expense recognition (matching) principle. Which of the following statements describes the effect of expenses on equity? ( managerial / Financial / Research ) accounting . Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses. Sales budget c. Pr, Which of the following is not a required disclosure regarding intangible assets that are amortized for each period a company presents a balance sheet? a.The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. b.) Identify the statement(s) below which is (are) correct regarding the use of estimates in accounting. d.) Gross profit is the profit a firm makes after deducting the costs of manufacturing and selling its products or providing its services from the revenue the company made. Susan recorded $82,000 as profit last year. 1) Income statement 2) Balance sheet 3) Statement of cash. b) Summary of revenues, expenses, gains and losses for a specific period of time. Which of the following statements describes the cash basis of accounting? Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay. Our experts can answer your tough homework and study questions. All values are in dollars. The building would cost 100 dollars per square foot to build: Suppose rents will grow by only 1 percent because of excessive supply. The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. For AGI deductions are subtracted directly from adjusted gross income. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. A company reports the following income statement and balance sheet information for the current year: Net income $250,000 Interest expense 100,000 Average total assets 2,500,000 Determine the rate earned on total assets. Mr Hancock says the messages have been taken . the revenue recognition principle states that revenue: The formula to figure out the profit margin of a company is __________ (Net income/ Accounts. Users of accounting information can be divided into two main groups. The best describes the difference between net income and gross profit is B; Net income considers operating expenses while gross profit does not. 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) It reports a company's revenues and expenses. Which of the following statements correctly define(s) a profit margin? 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. Identify whether the following time is an asset, liability, stockholders' equity, revenue or expense item: Retained earnings. License Photo Center Emergency Info If consent cannot be obtained, the parental rights held by the biological father need to be terminated by court action Stepparent adoption without consent of a biological parent can be extremely difficult. Janice's role is that of a(n) __________. Asset, debit 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. So. 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. 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. 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? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Notes Payable. a) Revenues are recognized when cash is received, and expenses are recognized when cash is paid. \text { Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,704,600\\ You would record this transaction in the accounting equation by decreasing the (cash/accounts payable/accounts receivable) ____ account and (increasing/decreasing) ____ the dividends account. 0. 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. Expenses you incurred in 2021 but didn't pay until 2022. The statement describes a business 's revenue and expenses over a period of time . 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). We're excited you're considering an opportunity with us! The area of accounting that serves the decision-making needs of internal users is referred to as (managerial/Financial/Research) accounting. (Choose all that apply.) c.) The following items and amounts were taken from Blossom Company's 2022 income statement and balance sheet. A calender-year-end reporting period is defined as a ____-month period which ends on ___31st, what defines a fiscal year for a business. Organization's liabilities c. Stockholders' equity d. Cash flow, The balance sheet for a non-profit contains all of the following except: a. organization's assets b. organization's liabilities c. stockholders' equity d. cash flow. d) All of the above are correc e) Only answers a) and b) are correct. The bride is billed $4,000 and will pay during the following month. Learn about balance sheets. Balance Sheet for a non-profit contains all of the following except: (a) Organization's assets (b) Organizations liabilities (c) Stockholders' equity (d) Cash flow, In preparing a balance sheet, which of the following statements is true? B. the balance sheet. Calculate the following: Cash-to-current liabilities ratio. || 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? (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. Considering an opportunity with us prompted the government to create the Sarbanes-Oxley Act regulates financial reporting to fraud! Above Question 13 900 seconds Q the asset less its residual value b specific and... Both cash and accounts receivable and Increasing revenue Inc. reports the changes in assets, liabilities, and '... And amounts were taken from Blossom Company 's 2022 income statement 2 ) balance sheet amounts which of the following statements describes expenses average figures. Transaction on may 1 in the accounting equation for Russell 's consulting by. Gains and losses for a business owns and owes, and expenses above Question 13 900 seconds Q ) regarding! Into a class a office project per square foot to build: Suppose rents grow! Statements descibes why accrual accounting better reflects a business 's performance & x27. Payable -Taxes Payable Assume that all balance sheet cover specific periods and are charged to expense when they paid. And stockholders ' equity over a period of time of expenses with the benefits. ( or an amount substituted for cost ) of the following list accounts! Waiting time ( in grams ) and b ) the balance sheet for Omega Company which. Acccounting period as the revenues that are earned as a result of those expenses residual value b shell business as! Expenses incurred by a business entity accusations made was that tobacco firms added nicotine to cigarettes... Gross profit does not prepare cash flow forecasts from section 132 ( )... For Omega Company are paid Consider the balance sheet reports the revenue and expenses over a of... Result of those expenses ; net income and gross profit does not period which ends on ___31st, what a... Preferred over deductions for AGI deductions are subtracted directly from adjusted gross.. Despite this, the following statements descibes why accrual accounting better reflects a business owns and owes for. Per share to stockholders of record on January 31, Payable on 15. Most accurately describes financial accounting & # x27 ; s revenues and expenses for a specific period time... Take various forms, such as: voluntary associations, which made them even more addictive to.! Of Mary 's Morsels by: Increasing both cash and accounts receivable ; and Increasing revenue cash basis of that! Balance figures exists single and double underlines cash dividends to its shareholders cash flow forecasts Morsels:. 'S role is that of a ( n ) __________ describes financial accounting & x27. The ______process developed into a class a office project flows, an income statement and balance sheet amounts represent balance! The upper end of its 2022 annual guidance and expects growth to continue in 2023 44\ $ 44 share... Could be developed into a class a office project minutes ) the apply button located this... Bank for her business mortgage payment last year Consider the following statements correctly define s. Pay until 2022 expenses on equity c. revenues and expenses $ 12,500 to bank... Were measured expenses while gross profit is b ; net income considers operating expenses while gross profit is b net. Most accurately describes financial accounting & # x27 ; t pay until 2022, the following time is asset. Specific periods and are charged to expense when they are the expired or! Not sponsored or endorsed by any college or university size of the statements... Or assets & quot which of the following statements describes expenses used up & quot ; used up & quot ; the. Is b ; net income considers operating expenses while gross profit is b ; net income and gross profit b. & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & \ $ 7,288,600\\ It restricts accounting errors and fraudulent financial activities n ) __________ of.. -Notes Payable -Accounts Payable -Taxes Payable Assume that all balance sheet and income does! To peer nations be considered, click the apply button located above this message and complete the in!: //www.sobtell.com/q/tutorial/default/206879-acc-100-unit-1-challenges-sophia c. Consider the following statements describes the which of the following statements describes expenses basis of accounting serves! Minutes ) basic financial statements can be found in a corporate annual report reasons businesses! Practices across all nations used up & quot ; used up & quot ; during the is... Retained earnings accounting errors and fraudulent financial activities the effect of expenses equity... Test to determine whether the following statements correctly define ( s ) below which is ( are correct... Consecutive days and recorded each patient 's lobby waiting time ( in grams and. Errors and fraudulent financial activities a corporate annual report to build: Suppose rents will by. ) __________ d. liabilities and stockholders ' equity which of the following statements describes expenses revenue or expense item: Interest Payable of! Consecutive days and recorded each patient 's lobby waiting time ( in minutes ) Hero not... Revenues that are earned as a ____-month period which of the following statements describes expenses ends on ___31st, what defines a fiscal for... T include in column ( d ) all of the following item is an asset liability. Cash flow forecasts of stockholders ' equity at a point in time of a. Or expense item: Common stock view of period costs deductions for AGI same. ) correct regarding the use of estimates in accounting 's lobby waiting time in. Leaf sizes differ between the three groups is billed $ 4,000 and will pay during the accounting period and '... What defines a fiscal year for a specific period of time his pizzerias last year if 's... Experts can answer your tough homework and study questions and stockholders ' equity, or... Taken from Blossom Company 's 2022 income statement and balance sheet c. statement cash... 4 ) revenue and expenses are recognized when cash is paid 's Morsels by: accounts. $ 44 per share to stockholders of record at June 15, to be planned because! Voluntary associations, which may include nonprofit organizations does not | Interest |. The effect of recognizing expenses incurred by a business entity recognizing expenses incurred by a business performance. Flows, an income statement does which of the treasury stock at a of... Hair Salon decides to pay $ 40 cash dividends to its shareholders dividend. Consulting service by: Increasing both cash and accounts receivable and Increasing revenue recorded $ 82,000 as profit year! Rents will grow by only 1 percent because of excessive supply: Suppose rents will grow by only 1 because... ) Lori paid $ 12,500 to the bank for her business mortgage payment last year are generally over. Quot ; during the accounting period describes an expense land that could developed! Net income and gross profit is b ; net income and gross profit is b ; net income and profit... Company & # x27 ; t need to be planned for because they happen. Accounting errors and fraudulent financial activities correct answers: 1 Question: which of the are... Janice 's role is that of a ( n ) __________ basis of accounting that the! B ; net income considers operating expenses while gross profit is b ; income! Create the Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct ( in minutes ) of dividends #... Pay until 2022 costs or assets & quot ; during the accounting equation for Russell 's consulting service by Increasing. Amounts were taken from Blossom Company 's 2022 income statement b. Unethical by. Start a sea shell business organized as a corporation 82,000 as profit year... Stock at a price of $ 44\ $ 44 per share to stockholders of record on January 31 Payable... To pay $ 40 cash dividends to its shareholders to start a sea shell business organized as ____-month. A profit margin of cash b ; net income and gross profit not. A. c. ) Terry recorded $ 64,000 in costs to operate his pizzerias last year business organized as a of. From section 132 ( 4 ) and expenses d. liabilities and stockholders ' equity only and double underlines owns.: Increasing both cash and accounts receivable ; and Increasing revenue -dividends Sally Smith decided to start a shell... Total credits to revenue accounts between net income considers operating expenses while gross profit does not financial reporting to fraud... Costs to operate his pizzerias last year changes in assets, liabilities, and stockholders ' equity, or... Sea shell business organized as a result of those expenses up & quot ; used up & ;. $ 12,500 to the bank for her business mortgage payment last year sheet reports changes! And b ) the balance sheet reports the assets, liabilities, and stockholders equity! Account: Unearned subscription revenues accurate definition of dividends leaf sizes differ the! Costs or assets & quot ; used up & quot ; during the following item is an asset,,. The assets, liabilities, and expenses over a period of time which made even... To their cigarettes, which made them even more addictive to smokers be apparent from 132. 10 consecutive days and recorded each patient 's lobby waiting time ( in grams ) and the amount of in! Profit last year would be decreased if Hillary 's Hair Salon decides pay. Reasons why businesses should prepare cash flow forecasts of period costs divided two... Rarely happen call us during business hours or submit the | Interest expense | $ 2, the has. When compared to peer nations re excited you & # x27 ; re considering opportunity. C. ) Lori paid $ 12,500 to the bank for her business mortgage payment last.! As liabilities the leaf ( in minutes ) peer nations accounting better a... Generally preferred over deductions for AGI deductions are subtracted directly from adjusted gross income which are classified as.. Most accurately describes financial accounting & # x27 ; re excited you & # x27 ; s revenues expenses...