b) expenses and revenues The matching concept refers to the matching of costs to the revenues that those prices produce.
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On December 31, 2013, Farrell Co. Owed $1,500 in wages to employee who had actually worked throughout December but would be paid in January. If the year-end mediate is properly recorded ~ above December 31, 2013, what will certainly be the impact of the accumulation on the adhering to items because that Farrell?Net income | Cash flow from operating Activitiesa) no impact | no effectb) diminish | no effectc) increase | decreased) no result | decrease
b) decrease | no effectRecording the adjusting entry will increase salaries expense, which will minimize net income and also it will rise salaries payable, a liability. It will not influence cash flows.
The following accounts and also balances were drawn from the documents of Hoover firm on December 31, 2013:cash: $1000 accounts receivable: $850dividends: $500 typical stock: $975land: $800 revenue: $800accounts payable: $450 expense: $550 a) $3,150. B) $3,450. C) $1,800. D) $2,650.
Which of the adhering to financial statement facets is closed in ~ the end of an bookkeeping cycle?a) liabilities b) common stock c) assets d) Revenues
d) RevenuesRevenues, expenses and dividends are closed come retained earnings at the end of an accounting cycle.
Which of the adhering to is one asset usage transaction?a) Purchased machine for cash. B) videotaped supplies price at the end of the period.c) invest cash in an attention earning account. D) Accrued value expense.
b) taped supplies expense at the end of the period.Recording supplies cost at the end of the duration is one asset use transaction that decreases legacy (supplies) and decreases equity (supplies cost decreases preserved earnings). Purchasing a device for cash and investing cash in an interest earning account are asset exchange transactions. Accruing salary cost is a cases exchange transaction.
The recognition of an expense may it is in accompanied through which of the following?a) rise in assets b) A to decrease in liabilities c) A to decrease in revenue d) an increase in liabilities
d) boost in legal responsibility Recognizing an price may be accompanied by rise in legal responsibility (i.e. Account payable, wages payable) or a decrease in heritage (i.e. Cash, prepaid rental or insurance).
Which that the following accounts would not appear on a balance sheet?a) Unearned Revenue. B) earnings Payable. C) interest Revenue. D) kept Earnings.
c) interest RevenueInterest revenue is an earnings statement account. Unearned revenue, despite having words "revenue" in that is title, is a liability account that appears on the balance sheet.
James agency paid $1,800 because that one year"s rent in development beginning top top October 1, 2013. James"s 2013 earnings statement would report rental expense, and also its explain of cash flows would report cash outflow because that rent, respectively, ofa) $1,800; $1,800 b) $450; $1,800 c) $450; $450 d) $300; $1,800
Revenue ~ above account price to $4,000. Cash collection of accounts receivable price to $2,300. Prices for the period were $2,100. The agency paid dividend of $450. Net revenue for the duration wasa) $200. B) $1,450. C) $1,850. D) $1,900.
Which of the following statements is true in regard to accrual accounting?a) Revenue is tape-recorded only once cash is received.b) expenses are recorded as soon as they are incurred.c) Revenue is tape-recorded in the period when the is earned.d) Both B and C.
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d) Both B and also CRevenue is recognized when earned and expenses are known when incurred, nevertheless of as soon as cash is exchanged.