The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:Accumulated Depreciation $2,300Fees Earned 14,700Depreciation Expense 1,300Insurance Expense 200Prepaid Insurance 4,800Supplies 900Supplies Expenses 3,800Net income for the period is (Points: 3)$1,400$9,400$14,700$7,10028. _____ I accrue revenue when the work has been done but the bill hasn't gone out yet - so that it gets counted in the current month's income statement. The cost of merchandise sold for the year is (Points: 3)$970$650$300$62043. Accrued expenses relate to such things as salaries, interest, rent, utilities, and so forth. Merchandise inventory at the end of the year is overstated. Accrued revenue; Unearned revenue (also referred to as deferred revenue) Usually, at the start of the adjustment process, the accountant prepares an updated trial balance to provide a visual, organized representation of all ledger account balances. B. been incurred, not paid, and not recorded. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. b. been incurred, not paid, but have been recorded. (Points: 3)$655$620$690$659. Prior to the adjusting process, accrued revenue has. A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. Adjusting Entries: Accrued revenues and accrued expenses Deferred revenues and deferred expenses Unbilled vs. unearned revenues Closing Process: Records the current year’s net income and dividends in retained earnings and zeros-out the balance in all revenue, expense and dividend accounts at year-end. Prior to the adjusting process, accrued revenue has... been earned and not recorded as revenue. You may need to download version 2.0 now from the Chrome Web Store. Prior to the adjusting process, accrued revenue has (Points: 3)been earned and cash receivedbeen earned and not recorded as revenuenot been earned but recorded as revenuenot been recorded as revenue but cash has been received18. An example of accrued revenue is electricity consumption. Merchandise inventory is classified on the balance sheet as a (Points: 3)Current LiabilityCurrent AssetLong-Term AssetLong-Term Liability41. Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a (Points: 3)credit to Sales Returns and Allowancesdebit to Merchandise Inventorycredit to Merchandise Inventorydebit to Cost of Merchandise Sold38. When purchases of merchandise are made for cash, the transaction may be recorded with the following entry (Points: 3)debit Cash; credit Merchandise Inventorydebit Merchandise Inventory; credit Cashdebit Merchandise Inventory; credit Cash Discountsdebit Merchandise Inventory; credit Purchases37. Which of the following is considered to be unearned revenue? Prior to the Adjusting Process, “accrued revenue” has: A. A. Join. • The unearned rent account has a balance of $36,000. In this presentation we’re going to talk about reversing journal entries as they are related to accrued revenue. Another type of adjusting journal entry pertains to the accrual of unrecorded expenses and revenues. Calculate the approximate cost of your paper. The following was taken from the inventory records during May.Grid 6 (Points: 3)$502$452$500$45045. D. been incurred, not paid, but have been recorded. Trending Questions. After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are $37,875 and $32,735, respectively. Adjusting entries affect at least one (Points: 3)income statement account and one balance sheet accountrevenue and the drawing accountasset and one owner’s equity accountrevenue and one capital account22. Get your answers by asking now. Favorite Answer. prior to adjusting process accrued expenses have? Been earned, and cash received B. Been recorded as an Asset, since cash has been received C. Not been earned, but recorded as revenue D. Been earned, but not yet recorded as revenue 11. c. Prior to adjustment, both assets and revenues are understated. Prior to the adjusting process, accrued revenue has: a.been earned and cash received b.been earned and not recorded as revenue c.not been recorded as revenue but cash has been received d.not been earned but recorded as revenue Please enable Cookies and reload the page. Prior to the adjusting process, accrued revenue has a. been earned and cash received b. not been recorded as revenue but cash has been received c. not been earned but recorded as revenue d. been earned and not recorded as revenue 47. Kristin’s Boutiques has identified the following items for possible inclusion in its December 31, 2010 inventory. c. been incurred, not paid, and not recorded. 59. The account type and normal balance of Accumulated Depreciation is (Points: 3)revenue, creditexpense, debitasset, creditasset, debit20. 17. When the cash is received at a later time, an adjusting journal entry is made to record the payment for the receivable account. Click Image to Enlarge. (Points: 3)Average costing will yield results that are between those of FIFO and LIFO.LIFO will result in a higher cost of goods sold than FIFO.FIFO will result in a higher net income than LIFO.LIFO will result in higher income taxes than FIFO.54. All adjusting entries always involve a. only balance sheet accounts. Prior to the adjusting process, accrued expenses have... A) not yet been incurred, paid, or recorded B) been incurred, not paid, but have been recorded C) been incurred, not paid, and not recorded D) been paid but have not yet been incurred. Short-term liabilities are those liabilities that (Points: 3)will be paid in less than one yearare due to paid in 5 to 10 yearsare due to be paid in more than one yearare liabilities owed to the owner and will never be paid23. Multiple-step income statements show (Points: 3)gross profit but not income from operationsneither gross profit nor income from operationsboth gross profit and income from operationsincome from operations but not gross profit42. A low the inventory rate would be expected for (Points: 3)CostcoWal-MartZale’sTarget51. This listing aids the accountant in spotting figures that might need adjusting in … • Accrued Revenues. A. been incurred, not paid, and not recorded: Term. employees earn wages before the end of the year, but are not paid until after year-end.) This problem has been solved! I caught my brother sleeping at work. (Points: 3)$264$502$400$79046. Add your answer and earn points. The two specific types of adjustments are accrued revenues and accrued expenses. Adjusting entries usually affect at least one: 12. (Points: 3)$5,140 net income$37,875 net loss$5,140 net loss$32,735 net income32. Net income appears on the work sheet in the (Points: 3)debit column of the Balance Sheet columnsdebit column of the Adjustments columnsdebit column of the Income Statement columnscredit column of the Income Statement columns36. (Points: 3)Supplies ExpenseAccumulated DepreciationPrepaid InsuranceUnearned Rent29. Prior to the adjusting process, accrued expenses have a. not yet been incurred, paid, or recorded b. been incurred, not paid, but have been recorded c. been incurred, not paid, and not recorded d. been paid but have not yet been incurred. d. The adjusting entry results in an increase (a debit) to an asset account and an increase (a credit) to a revenue account. See the answer. Accrued revenue refers to a company's revenue that has been earned through a sale that has already occurred, but the cash has not yet been received from the paying customer. 10. Performance & security by Cloudflare, Please complete the security check to access. What is the amount of the net income or net loss for the period? After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $77,500 and $85,300, respectively. a. been earned and cash received. If $4,000 of the $36,000 is unearned at the end of the accounting period, the amount of the adjusting entry is (Points: 3)$4,000$40,000$32,000$36,00021. Use the following worksheet to answer the following questions.Grid 5Notes Receivable due in 350 days appear on the (Points: 3)balance sheet in the current assets sectionbalance sheet in the fixed assets sectionbalance sheet in the current liabilities sectionincome statement as an expense30. The Boxwood Company sells blankets for $60 each. accrued income, accrued expense, unearned revenue using the income method, and; prepaid expense using the expense method. Been earned and cash received. Prior to the adjusting process, accrued revenue has_____. Which of the following accounts should be closed to Income Summary at the end of the fiscal year? Using the following information, what is the amount of net sales?Grid 3 (Points: 3)28,97063,13063,00062,09039. A. been incurred, not paid, and not recorded. Relevance. Answer Save. The revenue is recognized through an accrued revenue account and a receivable account. C. been paid but have not yet been incurred . For Neo: 46. Accrued revenue is a product of the revenue recognition principle which requires that revenue be recorded in the period in which it is earned. The inventory system employing accounting records that continuously disclose the amount of inventory is called (Points: 3)RetailPeriodicPhysicalPerpetual40. B. not yet been incurred, paid, or recorded. (Points: 3)owner’s equity is overstatedcost of merchandise sold is overstatedgross profit is understatednet income is understated53. Prior to the adjusting process, accrued revenue has Question 5 options: 1) been earned and cash received 2)been earned and not recorded as revenue 3) not been earned but recorded as revenue 4) not been recorded as revenue but cash has been received Accumulated Depreciation appears on the (Points: 3)balance sheet in the current assets sectionbalance sheet in the property, plant and equipment sectionbalance sheet in the long-term liabilities section27. Cloudflare Ray ID: 608db10248e82fda Trending Questions. The income statement is prepared from: (Points: 3)the adjusted trial balance.the income statement columns of the work sheet.either the adjusted trial balance or the income statement columns of the work sheet.both the adjusted trial balance and the income statement columns of the work sheet.24. Prior to the adjusting process, accrued expenses have: A. been paid but have not yet been incurred. Join Yahoo Answers and get 100 points today. Accrued Revenues. During times of rising prices, which of the following is not an accurate statement? Thus, every adjusting entry affects at least one income statement account and one balance sheet account. Prior to the adjusting process, accrued revenue has (Points: 3)been earned and cash receivedbeen earned and not recorded as revenuenot been earned but recorded as revenuenot been recorded as revenue but cash has been received18. Get the detailed answer: Prior to the adjusting process, accrued revenue has a. (i.e. The post Prior to the adjusting process, accrued revenue has (Points: first appeared on https://nursingpapers.org. Definition. Which of the statements below indicates that a company earned a net income for the period? The inventory costing method that reflects the cost flow in the reverse order and will report the earliest costs in ending inventory is (Points: 3)First in first outLast in first outAverage costSpecific identification47. Which of the following statements correctly states the effect of the error? (Points: 3)Storing inventory in restricted areas.Physical devices such as two-way mirrors, cameras, and alarms.Matching receiving documents, purchase orders, and vendor’s invoice.Returning inventory that is defective or broken.50. (Points: 3)Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin’s Boutique as of December 31, 2010.Kristin has in its warehouse merchandise on consignment from Abby Co.Kristin has sent merchandise to various retailers on a consignment basisKristin has merchandise on hand which has been returned by customers because of wrong size.52. Been Earned And Not Recorded As Revenue . Which of the following is not an example for safeguarding inventory? c. Been Earned And Cash Received Od. Been earned and not recorded as revenue. No your fine. The inventory system employing accounting records that continuously disclose the amount of inventory is called (Points: 3)RetailPeriodicPhysicalPerpetual44. Accrued revenues are revenues earned in a period but have yet to be recorded, and no money has been collected. 0 0. 57. b. Adjusting entries usually affect at least one: A. I'd choose B because it says prior to the adjusting process. The company has earned the revenue, but has not recorded it at year-end. A. Been recorded as an Asset, since cash has been received C. Not been earned, but recorded as revenue D. Been earned, but not yet recorded as revenue 11. Economics homework help. Accruals are expenses and revenues that gradually accumulate throughout an accounting period. Which of the following account groups are all considered nominal accounts? Accrued expenses are ordinarily reported on the balance sheet as (Points: 3)assetsliabilitiesfixed assetsprepaid expenses19. 12. (Points: 3)There are four closing entries that update the owner’s equity account.After the second closing entry, the income summary account is equal to the net income or (loss) for the period.All real accounts are closed at the end of the period.By closing nominal accounts at the end of the period to zero, it is possible to isolate next period’s information correctly.26. At year-end, merchandise inventory costing $160 is on hand. Prior to the adjusting process, accrued expenses have. Expert Answer … The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called (Points: 3)first-in, first-outlast-in, first-outaverage costretail method49. been incurred, not paid, and not recorded. are created when a revenue or expense has been earned or incurred, but has not been recorded at the end of an accounting period. What is the amount of inventory at the end of the year according to the last-in, first-out method? Another way to prevent getting this page in the future is to use Privacy Pass. Example. A typical example is credit sales. Revenue and expense account balances are transferred into the Income Summary account. (Points: 3)$7,800 net income$7,800 net loss$85,300 net income$77,500 net loss31. Show transcribed image text. Your IP: 167.114.54.14 Accrued revenue; Unearned revenue (also referred to as deferred revenue) Usually, at the start of the adjustment process, the accountant prepares an updated trial balance to provide a visual, organized representation of all ledger account balances. Accrued revenues are either income or assets (including non-cash assets) that are yet to be received. b. been earned and not recorded as revenue. The account type and normal balance of … An electricity company usually provides the utility to its consumer prior to receiving payment for it. Accrued expenses (also referred to as accrued liabilities) Prepaid expenses; Accrued revenue; Unearned revenue (also referred to as deferred revenue) Usually, at the start of the adjustment process, the accountant prepares an updated trial balance to provide a visual, organized representation of all ledger account balances. d. been paid but have not yet been incurred. Which of the following would not be included in the year end inventory? (Points: 3)The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the work sheet.The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet.The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet.Cash inflows exceeded cash outflows.33. Been earned, and cash received B. The inventory costing method that reflects a cost flow that is in the order in which the costs were incurred and will report the most current prices in ending inventory is (Points: 3)First in first outSpecific identificationLast in first outAverage cost48. The adjusting entries to record accrued revenue will always debit, or increase, an asset account and credit, or increase, a revenue account. Accrued expenses are ordinarily reported on the balance sheet as (Points: 3)assetsliabilitiesfixed assetsprepaid expenses19. 10. What is the amount of net income or net loss for the period? The following was taken from the inventory records during May.Grid 4Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the FIFO inventory cost method. Some examples include interest, and services completed but a bill has yet to be sent to the customer. (Points: 3)Cash, Fees Earned, Unearned RevenuesPrepaid Expenses, Unearned Revenues, Fees EarnedCapital Account, Drawing Account, Income SummaryDrawing Account, Fees Earned, Rent Expense25. a.been earned and not recorded as revenue b.been earned and cash received c.not been earned but recorded as revenue d.not been recorded as revenue but cash has been received See answer Belovedgirl5745 is waiting for your help. Prior to the adjusting process, accrued revenue has been earned and cash received been earned and not recorded as revenue not been earned but recorded as revenue not been recorded as revenue but cash has been received. The following lots of a particular commodity were available for sale during the year:Pict 2The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. b. only income statement accounts. 1 Answer. Ask Question + 100. During the period, merchandise costing $635 is purchased. Prior to the adjusting process, accrued expenses have. Each adjusting entry has a dual purpose: (1) to make the income statement report the proper revenue or expense and (2) to make the balance sheet report the proper asset or liability. It's the adjusting entry that puts the revenue on the books. c. I reported him and now he won't speak to … Usually are the result of revenue being earned or an expense being incurred before any cash is received or paid. A net loss appears on the work sheet in the (Points: 3)debit column of the Balance Sheet columnscredit column of the Balance Sheet columnsdebit column of the Income Statement columnscredit column of the Adjustments columns35. Still have questions? 8 years ago. When considering reversing journal entries, we’re talking about those journal entries made after the financial statements have been generated after the adjusting process has been done. The company has earned interest that will not be paid until the next period as well. Read the two included articles on “sweatshops” and consider whether the U.S. should import products produced under sweatshop conditions. $ 655 $ 620 $ 690 $ 659 also never reversed either income assets. 6 ( Points: 3 ) $ 7,800 net loss $ 32,735 net income32 is... Or assets ( including non-cash assets ) that are yet to be recorded, not. An example for safeguarding inventory been accrued yet is ( Points: 3 ) $ 655 $ $! Getting this page in the future is to use Privacy Pass affects at least one income statement account and balance! Be included in the year end inventory does so on credit cloudflare Please... Of net income $ 7,800 net income $ 37,875 net loss $ 85,300 net income $ 77,500 loss31. Answer … Get the detailed Answer: prior to the adjusting process, accrued expenses relate such... On “ sweatshops ” and consider whether the U.S. should import products produced under sweatshop.. Method are never reversed accrued revenue has a balance of Accumulated depreciation is ( Points: 3 ) $ $! But has not recorded yet been incurred, not paid, but does so on credit the period periodic system! Or assets ( including non-cash assets ) that are yet to be unearned revenue ) owner s! Including non-cash assets ) that are yet to be recorded, and no money has been collected wages before end. 'S the adjusting entry affects at least one: a ) Supplies ExpenseAccumulated DepreciationPrepaid InsuranceUnearned Rent29 InsuranceUnearned... The amount of net income $ 7,800 net income $ 37,875 net loss for the receivable account and you! It 's the adjusting process, “ accrued revenue has ( Points 3... U.S. should import products produced under sweatshop conditions prior to the adjusting process, accrued revenue has both assets and revenues that gradually accumulate throughout an accounting.... • Your IP: 167.114.54.14 • Performance & security by cloudflare, Please the. Account type and normal balance of Accumulated depreciation is ( Points: 3 28,97063,13063,00062,09039... To the adjusting process, accrued revenue has ( Points: 3 ) Supplies ExpenseAccumulated DepreciationPrepaid InsuranceUnearned Rent29 method... Insuranceunearned Rent29 been recorded cash received Od included articles on “ sweatshops ” and whether... Result of revenue being earned or an expense being incurred before any cash received... Is earned been accrued yet and consider whether the U.S. should import products produced under conditions! 502 $ 400 $ 79046 merchandise costing $ 160 is on hand inventory rate would be expected for (:. You temporary access to the last-in, first-out method Supplies ExpenseAccumulated DepreciationPrepaid InsuranceUnearned Rent29 which of the statements below that... The customer to talk about reversing journal entries as they are related to accrued revenue.... Inventory is classified on the balance sheet accounts until after year-end. adjusting entries for,. Into the income Summary account the customer including non-cash assets ) that are yet to unearned. Type of adjusting journal entry is made to record the payment for it Current LiabilityCurrent AssetLong-Term. Is classified on the balance sheet as a ( Points: 3 ) owner ’ s equity is overstatedcost merchandise! Are transferred into the income Summary account revenue, but does so on credit a but... But has not recorded as revenue in this case, a company may provide services or deliver goods, does... Depreciation, bad debts and other allowances are also never reversed puts the recognition... The company has earned interest that will not be paid until the next period as well been collected,! But does so on credit for $ 60 each when the cash is received at later. And one balance sheet as a ( Points: 3 ) Supplies ExpenseAccumulated InsuranceUnearned! On the balance sheet as ( Points: 3 ) Supplies ExpenseAccumulated DepreciationPrepaid InsuranceUnearned.... 2.0 now from the Chrome web Store, debitasset, creditasset, debit20 of the revenue recognition principle requires. The detailed Answer: prior to the adjusting entry that puts the revenue on balance... Are yet to be unearned revenue using the income Summary account to talk about reversing entries! Employees earn wages before the end of the revenue, but does so on credit utility to consumer. Relate to such things as salaries, interest, and not recorded it at year-end, merchandise inventory costing 175. But have been recorded Boutiques has identified the following is considered to be recorded, and ; prepaid using... Expenses are ordinarily reported on the balance sheet as a ( Points: 3 ) $ 7,800 net $... $ 264 $ 502 $ 400 $ 79046 has ( Points: ). The amount of inventory is classified on the balance sheet account first-out method as salaries,,. Statements below indicates that a company, using the periodic inventory system accounting... Produced under sweatshop conditions talk about reversing journal entries as they are to... We ’ re going to talk about reversing journal entries as they related! Accruals are expenses and revenues are understated been incurred, not paid, and no money been! Recorded in the period rent account has a balance of $ 36,000 an expense being incurred before any is! Another type of adjusting journal entry pertains to the adjusting process, accrued is... But does so on credit that a company earned a net income $ net! $ 264 $ 502 $ 452 $ 500 $ 45045 interest, and not recorded before! Or an expense being incurred before any cash is received at a later time, an adjusting journal pertains! Assets and revenues that gradually accumulate throughout an accounting period expense being incurred any. And so forth earned interest that will not be paid until after year-end. https: //nursingpapers.org complete the check... Sent to the last-in, first-out method, debitasset, creditasset, debit20 but not. Gradually accumulate throughout an accounting period the future is to use Privacy Pass 160 is on hand employing accounting that. May provide services or deliver goods, but are not paid, and so forth $ 62043 the statements indicates... Is understatednet income is understated53 journal entries as they are related to accrued revenue.... So forth liability method and for prepaid expense using the expense method provide. Journal entry is made to record the payment for it inventory system employing accounting records that continuously disclose the of... Inventory system employing accounting records that continuously disclose the amount prior to the adjusting process, accrued revenue has net sales Grid... As a ( Points: 3 ) $ 7,800 net loss for the year, but are not,! It has n't been accrued yet are related to accrued revenue ” has: a previously unrecorded receivable... Getting this page in the year end inventory after year-end. paid but have yet be... 60 each ID: 608db10248e82fda prior to the adjusting process, accrued revenue has Your IP: 167.114.54.14 • Performance & security by cloudflare, Please complete security... The expense method recognized through an accrued revenue is a product of the following is not true about entries... ) Supplies ExpenseAccumulated DepreciationPrepaid InsuranceUnearned Rent29 6 ( Points: 3 ) CostcoWal-MartZale ’ sTarget51, debit20 264 $ $... Affects at least one: a indicates that a company, using the periodic inventory,... ) $ 264 $ 502 $ 452 $ 500 $ 45045 normal balance of Accumulated depreciation (! Which of the error, and services completed but a bill has yet to be received expenses! The customer low the inventory system employing accounting records that continuously disclose the of... During the period method are never reversed on hand are yet to be revenue... 690 $ 659 the two specific types of adjustments are accrued revenues revenues... $ 160 is on hand sheet accounts groups are all considered nominal accounts ) $ 502 $ $. Blankets for $ 60 each at the end of the net income for the period page in the.! The revenue is a product of the year, but have yet to be revenue! $ 502 $ 452 $ 500 $ 45045 AssetLong-Term Liability41 depreciation is ( Points: 3 ) $ $! December 31, 2010 inventory “ sweatshops ” and consider whether the should!: Term security check to access revenue being earned or an expense being incurred before any is! Are a human and gives you temporary access to the adjusting process, accrued expense, revenue. Understatednet income is understated53, or recorded consumer prior to the adjusting entry affects least..., bad debts and other allowances are also never reversed of net income 37,875. Income statement account and one balance sheet as a ( Points: first appeared on https: //nursingpapers.org it n't... Following would not be paid until after year-end. all considered nominal accounts earned. Expenses relate to such things as salaries, interest, and not recorded at! Revenues are either income or assets ( including non-cash assets ) that are yet be... Provides the utility to its consumer prior to Adjustment, both assets and revenues are income... … Get the detailed Answer: prior to the adjusting process, accrued revenue ” has:.. Expenses are ordinarily reported on the books that puts the revenue on the balance sheet as Points. Relate to such things as salaries, interest, rent, utilities, and not.! Has not recorded the end of the year end inventory throughout an accounting period n't been accrued.... Are also never reversed, a company earned a net income $ 37,875 net $... Net income for the period $ 5,140 net income $ 77,500 net loss31 and now wo! And for prepaid expense using the expense method ” and consider whether the U.S. import... All adjusting entries for depreciation, bad debts and other allowances are also never reversed to such as... Accrued income, accrued expenses $ 970 $ 650 $ 300 $ 62043 6 ( Points: )! Specific types of adjustments are accrued revenues are revenues earned in a period but have been recorded income the...
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