which of the following is correct regarding expenses

Select the statement below that best defines prepaid accounts. Account Adjustments: Types, Purpose & Their Link to Financial Statements. Which of the following statements is correct regarding expenses.. B) Depreciation expense must be recorded in the governmental fund, but no depreciation expense is recorded in the governmental activities accounts.. Adoption expenses paid prior to the year of adoption are not eligible for the credit until the year the adoption is finalized. How would this affect the total equity of the business? Found insideOriginally published in 1961 by the founder of Rodale Inc., The Synonym Finder continues to be a practical reference tool for every home and office. Found inside – Page 162For expenses of 1855 , the sum of $ 1210 82 has been paid into the ... leaving a balance in the treasury of $ 15 40 . of these offices there has been paid ... Get the detailed answer: Which, if any, of the following is true regarding the deduction for moving expenses: a. Notes receivable is considered a(n) ______________ (asset/liability). Found inside – Page 227Journalise the following transactions regarding expenses: (a) Realisation expenses amounted to ` 2,500. (b) Realisation expenses amounting to ` 3,000 were ... In this lesson, we'll learn how to prepare a budget for a corporation, starting by planning the budget and ending with distribution. Found inside – Page 15-24They have salaries of $ 80,000 , moving expenses of $ 4,000 ... Which of the following statements regarding filing status for Federal income tax purposes is ... 19. The proposed regulations modify the safe harbor list of expenses for which distributions are deemed to be made on account of an immediate and heavy financial need by: (1) Adding “primary beneficiary under the plan” as an individual for whom qualifying medical, educational, and funeral expenses may … Twice a day, you have a chance to win $1,000!! Bear Publishing sells a nature guide. Supplies would be debited, and Cash would be credited. B)Before adjustments, debits will not equal credits in the trial balance. The use of a declining balance method of depreciation will produce lower depreciation charges in the early years of an asset’s life compared to the straight-line depreciation method. The income statement provides information about the profitability and growth of a company.b. D) The adjusting entry for prepaid expenses increases expenses and decreases liabilities. Incremental costs related to the successful negotiation of a contract should be capitalized. Which of the following statements is TRUE? a. recurring expenses don't need to be planned for because they rarely happen. b. recurring expenses are expenses that can never be stopped. c. recurring expenses should be planned for after looking at your wants. Found inside – Page 442Financial records that are complete, correct, and current are essential for: ... Expenses are recognized and recorded when incurred, even though they have ... The client paid $100 immediately, but promised to pay the balance next month. a) Prepaid … Qualified adoption expenses are taken into account in the year that the adoption becomes final. §8102a: Death gratuity for injuries incurred in connection with employee's service with an armed force. What Is a General Journal in Accounting? d. all of the above. B. $6,000 on left side of the Equipment account; $5,000 on the right side of the Accounts payable account; $1,000 on the right side of the Cash account. C) Expenses will never result in the creation of a liability account. Expenses are reported on the left side of the accounting equation. Dividends would be ______________ (debited/credited) on the ______________ (left/right) side of the T-account, and Cash would be ______________ (debited/credited) on the ______________ (left/right) side of the T-account. a. You will learn what closing entries are, what accounts are affected, and how they are made. The journal entry to record this transaction in Callie Company's books would include which of the following? Division of Federal Employees' Compensation (DFEC) §8101: Definitions. Accounts payable refer to promises to pay later, which may arise from the purchase of supplies or services. Multiple choice question. Unit 4 Which of the following expenses illustrates short term financing? (Check all that apply.). Assets would be decreased and total equity would decrease as well. The business earns $700 of consulting revenue. Brown Company provided services to a customer and immediately collected $1,900 cash. c) Prepaid expenses have not been paid and accrued expenses have been paid. Plant Assets: Definition & Accounting Issues. Rent expense, wages expense, insurance expense, Which of the following accounts are examples of revenues? A. d. Match the items on the left with their definition on the right. It is the promise of another entity to pay a specific sum of money on a specified future date. Which of the following is correct regarding posting a transaction? A. Consignment Dr. & Profit and loss on consignment Cr. Accumulated Depreciation: Definition & Formula. D. These are balance sheet accounts. Office rent is product cost and supervisors’ salaries expense is a period cost. Match the item on the left with the correct definition on the right. Which of the following is true regarding the income statement? 40. Which one of the following statements is not correct with regard to the Comptroller and Auditor General of India (CAG)?. Multiple Choice Question, © 2023 by Moray Dive School. A) Expenses represent future benefit to the company. Holt Computer Services received $200 from a customer that it had billed earlier in the month. Expenses result from products or services provided to customers Expenses increase equity. (Check all that apply.). Current & Long-Term Liabilities: Definition & Characteristics. On Jan. 2, Callie Company received a $700 payment from a customer previously billed for services performed. Explore the purpose of a balance sheet, its components, and presentation format, wherein both sides must be equal. 2. The self-employment tax rate in 2014 is 15.3 percent of self-employment profit. Which of the following statements is true regarding depreciation methods? 6. All of the following are true regarding Medical Payments coverage under the BOP, except: Choose one answer. Note: order of the equation is important. Found inside – Page 5873( 13 ) that correct ? ... ( 18 ) with the authorizations ; is that correct ? ... but it was when we were 211 regarding expenses and other matters . Paul's Programming Services paid $100 dividends. Accounting is a multi-step process. The post Which of the following is a TRUE statement regarding expenses? The journal entry to record this transaction in Callie Company's books would include a ______________ (debit/credit) to the Cash account; a ______________ (debit/credit) to the Accounts receivable account and a ______________ (debit/credit) to the Service revenue account. Deductible home office expenses of employees are for AGI deductions not limited to gross income from the business. All undergraduate tuition expenses can be excluded. The business earns $2,800 cash for services performed. With existing networks in more than 60 towns and cities, CityFibre provides wholesale connectivity to multiple business and consumer service providers, local authorities and mobile operators. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,620,000.Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2021 … Which of the following statements is true regarding QuickBooks Online? The college was to receive $1,500 per individual test. Which of the following are examples of prepaid (expense) accounts? B. e. only a and c. Answer: D [p. 405] 55.6 Which of the following is (are) true regarding an “educational benefit trust”? a. IFRS does not permit revaluation of property, plant, and equipment, and intangible assets. D. The expense recognition principle recognizes revenue in the same period in which the related revenues are earned. Which of the following formulas is correct in depicting the expanded accounting equation? 68. You also need to be able to find information on the Internet, analyze various business situations, work effectively as a member of a team, and communicate your ideas clearly. This text was developed to help you develop these skills. Found inside – Page 160Which statement is correct regarding IFRS? (a) IFRS reverses the rules ... (c) The chart of accounts under IFRS is different because revenues follow assets. An account is a record of increases and _______________ in a specific asset, liability, equity, revenue or expense. 21.09.2020 — Multiple Choice Questions. The cost of the factory equipment is an expense … Grab your share!! Found inside – Page 41Which of the following statement is/are true regarding Aarogya Setu app? ... means of livelihood and minimal or no savings to take care of their expenses. The maximum credit is $5,000 for the adoption of a child with special needs. Illustrate how to record the transaction to T-accounts by completing the following sentence. A) Expenses increase equity, so an expense account's normal balance is a credit balance. Which one of the following statements is true? 10. A creditor is an individual or organization that has a right to receive payments from a business. A. A source document identifies and describes transactions and is the basis for entering an event into the accounting system. The CAG has been awarded a fully ... 900d8beed2, © 2023 by Moray Dive School. Expenses will never result in the creation of a liability account. All of the following statements concerning dividends are true EXCEPT. Which of the following is a true statement? Don Herrmann, J. David Spiceland, Wayne Thomas. A business paid $40 in dividends. Which of the following is a true statement regarding the paying of estimated taxes? 72 a. The taxpayer expects to owe at least $100.00 in tax for the … read more Which of the following statements is true concerning the tax filing requirements if you owe Alternative Minimum Tax (AMT)? Select one: a. You can … read more A) Expenses represent future benefit to the company. Which of the following accounts has a normal debit balance? Revenues cause equity to ________________ (decrease/increase) and they are increased on the ________________ (left/right) side of the T-account. Found inside – Page 401Regarding the value or selling price of the goods produced , the amount of ... and apparently correct ; regarding replacement , selling expenses , losses by ... For tax years beginning in 2021, the maximum section 179 expense deduction is $1,050,000. Which of the following statements is accurate regarding Accounts payable? The client paid $800 immediately, The journal entry to record this transaction in Callie Company's books would include a ______________ (debit/credit) to the Cash account; and a ______________ (debit/credit) to the Service revenue account. B. Found inside – Page 578The number of inquiries regarding the finances of manufacturing concerns ... total for all the reported items of expense from the reported value of products ... C. They have no impact on the balance sheet. Illustrate how to record the transaction in the T-accounts by completing the following sentence. Found inside – Page 196Which of the following is correct regarding the trust ? The trust will fail for want of a proper purpose . b . The trust income will not be taxable to ... Equity is the owner's claim on a company's assets. B) The expense recognition principle recognizes revenue in the same period in which the related revenues are earned. Found insideThe adjustment entry for these is as follows: PrePaid Expense a/c Dr. To Expense a/c ... Accruals regarding expenses and income are adjusted only in accrual ... A) They are paid for in advance of receiving their benefits. : Expenses decrease the amount of stockholders’ equity. a. C) Expenses increase equity, so an expense account's normal balance is a debit balance. b. c. The policy excludes funeral expense. The Supplies account would be _____________ (debited/credited) on the __________ (left/right) side of the T-account and the Cash account would be ______________ (debited/credited) on the ________ (left/right) side of the T-account. B)The adoption expenses credit is subject to a phase-out. A) Prepaid expenses represent assets. On Nov.1, Lyons Company pays $2,400 cash for supplies. Choice "B" is correct. Found inside – Page 551Which one of the following statements is correct regarding the credit for adoption expenses? a. The credit for adoption expenses is a nonrefundable credit ... 113. Which one of the following could not be classified as revenue expense? In this lesson, we'll define 'liabilities.' In a journal, both the debit and credit side of the transaction can be seen. Assets are decreased and equity is decreased. She paid $1,000 immediately and put the rest on account. The general ledger is a record containing all accounts used by a company. B. B. The journal entry to record this transaction would include a _____________ (debit, credit) to the __________________ account and a _______________ (debit, credit) to the Accounts Receivable account. The cost of the factory equipment is … A) The posting process requires detailed explanations in both the journal and the ledger. A corporation purchased factory equipment using cash. The accounting cycle refers to the specific steps used to complete the accounting process and maintain an organization's financial records. Generally, you cannot deduct personal, living, or family expenses. Which of the following statements is the best definition of the Chart of Accounts? Found inside – Page 22... imputed to correct for the following : ( 1 ) the householdreported payer ... ( 2 ) the person was not billed for the event so no expense or sources of ... The same study estimates 15,600 lives were needlessly lost in states that did not expand. Which of the following statements is (are) correct regarding a journal? 15) Which of the following statements is correct regarding depreciation? The unexpired portion of prepaid accounts are treated as assets. A)Business expenses are generally refundable credits. Regarding the federal court system, which of the following statements is false? C. The sales budget will drive the cost of goods sold budget. Which of the following statements is correct regarding the drivers of operating and financial budgets? Identify which of the following formulas correctly defines how to calculate the debt ratio. Which of the following statements regarding the income statement is true?a. A. §8102: Compensation for disability or death of employee. Supplies are _____________ (assets/expenses/liabilities) until they are used. Schedule C is used only to report profit from a business O C. Schedule C is used to report profit or loss from a business OD. Which of the following statements is not true regarding prepaid expenses? a. (Check all that apply.). Which one of the following statements regarding the Revenue Recognition Principle and Expense Recognition (Matching) Principle is true? Accounts payable would be ______________ (debited,/credited) on the ______________ (left/right) side of the T-account, and Supplies would be ______________ (debited/credited) on the ______________ (left/right) side of the T-account. Found inside – Page 49Which statement is correct regarding IFRS? a. ... The chart of accounts under IFRS is different because revenues follow assets. c. proves that all ... GED Social Studies: Civics & Government, US History, Economics, Geography & World, ILTS Social Science - Economics (244): Test Practice and Study Guide, Financial Accounting: Homework Help Resource, UExcel Business Law: Study Guide & Test Prep, DSST Human Resource Management: Study Guide & Test Prep, Introduction to Human Resource Management: Certificate Program, Human Resource Management: Help and Review, College Macroeconomics: Homework Help Resource, Introduction to Macroeconomics: Help and Review, UExcel Business Ethics: Study Guide & Test Prep, Principles of Business Ethics: Certificate Program, DSST Computing and Information Technology: Study Guide & Test Prep, Introduction to Computing: Certificate Program, Adjusting Entries: Definition, Types & Examples, Working Scholars® Bringing Tuition-Free College to the Community. a. recurring expenses don't need to be planned for because they rarely happen. See Page 1. 2. Objective of financial reporting. Revenues are reported in the period in which cash is received, and expenses are reported when cash is paid out. Paul's Programming Services paid $100 in cash dividends. The correct answer is “the consignor and is sent to the consignee” (option 1). Assets: Things of value owned by the business, Which of the following accounts impact equity? Having a basic understanding of fundamental accounting terms is a good idea for everyone. d. b. B. Enter $8,000 on left side of Cash; enter $8,000 on the right side of Service revenue. Equipment is a(n) ______________ (asset/liability/expense) account. Companies have a number of different types of assets that they have to keep track of. Which of the following statements is correct regarding the deductibility of an individual's medical expenses? Found inside – Page 152We have had enough experience with these activities to make some judgment . ... that from your evidence none of that was U.S. funds , is that correct ? Which of the following accounts would be considered an asset? a. Which of the following statements is the correct definition of a liability? b) Prepaid expenses have been incurred and accrued expenses have not been incurred. A corporation purchased factory equipment using cash. Journal entries for both are illustrated with examples. a.. 46. Sales $17,600 $16.00. B. The amount of business interest expense disallowed as a deduction in the current year under section 163(j) is carried forward to the next taxable year (a “disallowed business interest expense carryforward”). Which one of the following statements is correct regarding the credit for adoption expenses? Education Exception to Additional Tax on Early IRA Distributions. Found inside – Page 69Regarding expenses, even if revenues are higher than expected, ... In case of failing to meet these targets, a financial plan to correct the situation in a ... Contact the local Chamber of Commerce to get an economic profile. Which statement is not correct regarding "Gram Sabha"?. a. B) Prepaid expenses are shown in a special section of the income statement. All rights reserved. (Check all that apply.). 19. D) Prepaid expenses appear in the balance sheet. Found inside – Page 325Court did not pronounce any order regarding expenses . Cheyne . Pending these proceedings , on 23d October and 6th December 1890 A B granted two cheques ... Find IRS forms and answers to tax questions. Later in the day, when we announce the keyword, go to our website, 921wvtk.com and enter to win. Adjusted Trial Balance: Definition, Preparation & Example. Which of the following statements is correct regarding expenses. The underlying theme of the conceptual framework is. A. these items are expenses to the employer. The correct answer is option a) Prepaid expenses have been recorded and accrued expenses have not been recorded. It doesn't have to be difficult, though, as we'll show here. Prepaid expenses are shown in a special section of the incomestatement. When they are used up, their costs are reported as ______________ (assets/expenses/liabilities). d. Objective of financial reporting. Expenses increase owners’ equity and decrease liabilities. Per Unit. a. Which of the following is not true regarding a credit card expense? However, Paypal is not a law firm and is not likely giving legal advice to anyone regarding anything. Proudly created with. We are also able to handle any complex paper in any course as we have employed professional writers who are specialized in different fields of study. We’re giving away $2,000 a day, that’s $10,000 a week!! In this lesson, we will be discussing one of those steps - creating an adjusted trial balance. Learn what a current ratio is and why it is so important to understand when evaluating the health and future of a company. The contribution margin ratio increases as the number of units sold increase c. The contribution margin ratio multiplied by the variable expense per unit equals the Which of the following statements is not true regarding prepaid expenses? Since expenses are the costs of doing business and cause equity to __________________ (increase/decrease), expenses are increased on the __________________ (right/left) side of their T-account. The adoption expenses credit NOT allowed if the adoption falls through. An increase in project scope is likely to increase project cost.. Found inside – Page 495EXPENSES OF OPERATION It should be noted that in the above financial statements ... the following figures regarding expenses were secured by the examiners ... Tuition, fees, and charges are subject to change by administrative, federal or state legislative changes, or University of Memphis Board of Trustees action, and changes become effective on the date enacted. Which of the following statements are true? 1. J. Jackson invested $1,000 in his business in exchange for common stock. Expenses are increased on the left side of their T-account because they decrease equity. Which of the following lists of items contain only examples of prepaid (expense) accounts? Operating Cycle in Accounting: Definition & Formula. d) Prepaid expenses have not been recorded and accrued expenses have not been recorded. Which of the following statements regarding this purchase is correct? Found inside – Page 425... and we certify that the following is a correct summary of the information contained therein : Net profit from the 55 publications during the year 1916. A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions. Sunshine Company received and paid for a utility bill of $50. B. Which of the following statements are accurate regarding supplies? A record of increases and decreases in a specific asset, liability, equity, revenue, or expense item, Which of the following items would be considered "cash" and reflected in a company's Cash account? There are several types of accounts that impact equity. Which of the following describes a general ledger? New Jersey. Answer to: Which of the following is not true regarding taxes deducted from an employee's earning? Found inside – Page 482Further , Matson is correct regarding the State's omission of the ... The most obvious item of projected expense for 1986 which begs examination is Matson's ... Found inside – Page 488... regarding expenses as born by yourselves and myself which are correct and are ... freight and handling charges and other necessary expenses of unloading ... (Check all that apply. Multiple choice question. Question I am a former Employee, and I need to access my W2 Form. Found inside – Page 2032A. That is correct . ... A. I checked the owner's audited statement regarding expenses , and again I conܕ ܕ Richard S. Nesser , for Respondent - Cross . Pay your taxes. Depreciation expense must be recorded in the governmental fund, but no depreciation expense is recorded in the … - Definition & Model. Show how to record this transaction to the T-accounts by selecting the correct answer below. See how the ratio is calculated and what components go into this important figure. We help you understand and meet your federal tax responsibilities. A. a. IFRS does not permit revaluation of property, plant, and equipment, and intangible assets. After allocating the home-related expenses between the business office and the rest of the home, which of the following statements regarding the sequence of deductibility of the expenses allocated to the home office business use is correct? a. Which statement best describes a T-account? (Check all that apply.). b. 17 Merchandise may need to be returned for a variety of reasons, including defects, damages or wrong sizes. Show how to record this transaction to the T-accounts by selecting the correct answer below. Get your share of the $10,000 we’re giving away each week. ), Given the descriptions below, which is (are) true regarding notes receivable? a. $50 on left side of the Utility expense account; $50 on the right side of the Cash account. Given the following information for Jackson's Boots, calculate its Debt Ratio for the current year. Found inside – Page 7... but good care , feeding and advertising and the following of the show ring ... correct accounts kept regarding expenses and receipts , until a thorough ... Unearned Revenue would be credited and listed second. Show how this transaction should be entered into T-accounts of Gunner Company, by selecting the correct answer below. A T-account may be used as a tool to visualize the effects of a transaction. The income statement consists of assets, expenses, liabilities, and revenues.d. The text and images in this book are in grayscale. Found inside – Page 28It is supposed to cover the extra expenses incident to traveling . ... The answer to the agency's second question , regarding reimbursability of the payment ... ANSWER: B. d. An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. C) Prepaid expenses become expenses only as goods or services are used up. C) When they are used, their costs become expenses. Which one of the following statements is correct regarding the credit for adoption expenses? a. Holt Computer Services purchased $2,000 of new equipment and paid immediately. Match the definition on the left with the term/item on the right. Multiple Choice. c. Companies must classify expenses by nature. Good Luck!! A medical expense paid by credit card is deductible in the year the amount is charged to credit card (rather than in a subsequent year when the credit card bill is paid).Choice "d" is incorrect. Accounting Q&A Library Which of the following statements regarding the adoption expenses credit is not true? Get your refund status. Expenses are increased on the left side of their T-account because they decrease equity. C. Up to $5,250 in tuition benefits can be excluded. Self-employment tax is similar to Social Security and Medicare taxes. Which of the following statements is (are) correct regarding a T-account? Which of the following is not true regarding service department expenses? their very small exactly the same in regards to short term Loan. D. (Check all that apply.). Current Ratio in Accounting: Definition, Formula & Analysis. C. Prepaid expenses become expenses only as goods or services are used up. Smith Company purchased $8,000 of supplies on credit. When entering a transaction into a general journal, the entry would be dated; then the accounts _____________ (debited/credited) would be listed first; then the accounts ___________________ (debited/credited) would be listed next; and finally, a(n) __________________ would be included to show the details of the transaction. Learn the definition of the accounting cycle, and explore the process, including its 10 basic steps, and how when they are done a new accounting period begins. True or false: At the end of the period, the assets will still equal the liabilities plus equity. At best, in the US, Paypal is ensuring it is in compliance with laws relating to banking/secure transactions and other financial-services laws. A. Expenses are increased on the left side of their T-account because they decrease equity. Question Paper May 2018. Which of the following statements regarding the trial balance is correct? Revenues would be increased, so equity is increased. Contribution margin $7,920 $7.20 A. The expanded accounting equation is: _______________ = _______________ + common stock + _______________ - _______________ - dividends. © copyright 2003-2021 Study.com. View full document. B) They are assets. The stockholders of a business received a $1000 dividend. (Check all that apply.). The income statement shows the results of a company’s operations at a specific point in time.c. Found inside – Page 237Details regarding expenses charged to the fund for administering the plan or fund . ... with an appropriate transition period for existing plans . Disclaimer: The following information is not intended to be comprehensive and is subject to change. Which of the following statements about revenues is correct? The Dividends account is used to record ________________ (investments/dividends/expenses/revenues) by the owner and has a ______________ (positive/negative) impact on equity. If her deductible long-term care insurance premiums, her medical expense premiums, and her after-tax, out-of-pocket expenses total at least 10% of her income, the excess amount is tax deductible. The Equipment account would be ______________ (debited/credited) on the ______________ (left/right) side of the T-account and the Cash account would be ______________ (debited/credited) on the ______________ (left/right) side of the T-account. CityFibre has network rollouts underway with plans to pass up to 8 million homes and businesses with open-access full fibre […] Show how to use T-accounts to record this transaction by selecting the correct answer below.
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