Homework Answers
| 4) Revenue and expense accounts are called as Temporary accounts because : | |
| They both are the income statement accounts. | |
| The balance in both the accounts will be closed on the year end | |
| And it will be transferred to the permanent accounts like Retained earnings or owners equity. | |
| Eg : At the year end Profit in the income statement will be transferred to retained earnings account. | |
| a)decrease in assets and decrease in liability --sale of land,buildings and paying of the debt with the money | |
| b) a decrease in one asset and increase in anoher asset - purchase of buildings(decrease in cash and increase in P&E) | |
| c)a decrease in one liability and increase in aanother liability? ---taking loan and paying off accounts payable..so decrease in accounts payable and increase in debt | |
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4. Why are revenue and expense accounts called temporary or nominal accounts? 1. Give an example...
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For each of the following items give an example of a business transaction that has the described effect on the accounting equation: increase an asset and increase a liability increase one asset and decrease another asset decrease an asset and decrease
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LO 4-20 4.63 Errors and Frauds. Give an example of an error or fraud that would...
LO 4-20 4.63 Errors and Frauds. Give an example of an error or fraud that would misstate financial statements to affect the accounts as follows, taking each case independently. (Note: "Overstate" means the account has a higher value than would be appropriate under GAAP and "understate" means it has a lower value.) a. Overstate one asset; understate another asset. b. Overstate an asset; overstate stockholders' equity. c. Overstate an asset; overstate revenue. d. Overstate an asset; understate an expense. e....
EXERCISE 5-1 (temporary) and indic ISE 5-1 Classify the following accounts as real (permanent) or nominal...
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answer please MC1q4 discussion, 1 point, due 2/3 Refer to Chapter / multiple-choice question 4 below....
answer please
MC1q4 discussion, 1 point, due 2/3 Refer to Chapter / multiple-choice question 4 below. (4) According to the FASB's conceptual framework, an entity's revenue may result from a(n) A. Decrease in an asset from primary operations. B. Increase in an asset from incidental transactions. C. Increase in a liability from incidental transactions. D. Decrease in a liability from primary operations. The correct answer is D. A. A decrease in an asset from primary operations results in an expense....
3) Cash Service Revenue Salaries Expense Accounts Payable C Retained Earnings Utilities Expense Accounts Receivable Common...
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Which of the following accounts is considered a temporary or nominal account? Group of answer choices...
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Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000...
Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000 Sales Returns and Allowances: ??? Net Sales Revenue: $162,000 Cost of Goods Sold: $55,500 Gross Profit:????? Operating Expenses: $35,000 Net Income: ????? a) $162,000 b) $106,500 c) $71,500 d) $65,000 Question 4 (1 point) Performing a service for a client on account will a) increase one asset and decrease another asset b) decrease an asset and decrease a liability. c) increase an asset and...
Errors and Frauds. Give an example of an error or fraud that would misstate financial statements...
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LO 4-20 4.63 Errors and Frauds. Give an example of an error or fraud that would misstate financial statements to affect the accounts as follows, taking each case independently. (Note: "Overstate" means the account has a higher value than would be appropriate under GAAP and "understate" means it has a lower value.) a. Overstate one asset; understate another asset. b. Overstate an asset; overstate stockholders' equity. c. Overstate an asset; overstate revenue. d. Overstate an asset; understate an expense. e....
EXERCISE 5-1 (temporary) and indic ISE 5-1 Classify the following accounts as real (permanent) or nominal rary) and indicate with an X whether the account is closed. Also indicate the al statement in which each account will appear. The Building account is given as an example. Closed Income Statement Real Nominal Yes No Balance Sheet Account Title 0. Example: Building a. Prepaid Insurance b. Accounts Payable c. Wages Payable d. Services Revenue e. Rent Expense f. Supplies Expense g. Accum....
answer please
MC1q4 discussion, 1 point, due 2/3 Refer to Chapter / multiple-choice question 4 below. (4) According to the FASB's conceptual framework, an entity's revenue may result from a(n) A. Decrease in an asset from primary operations. B. Increase in an asset from incidental transactions. C. Increase in a liability from incidental transactions. D. Decrease in a liability from primary operations. The correct answer is D. A. A decrease in an asset from primary operations results in an expense....
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Financial information is found below for Trinity Company. What is the gross profit? Sales Revenue: $192,000 Sales Returns and Allowances: ??? Net Sales Revenue: $162,000 Cost of Goods Sold: $55,500 Gross Profit:????? Operating Expenses: $35,000 Net Income: ????? a) $162,000 b) $106,500 c) $71,500 d) $65,000 Question 4 (1 point) Performing a service for a client on account will a) increase one asset and decrease another asset b) decrease an asset and decrease a liability. c) increase an asset and...
Errors and Frauds. Give an example of an error or fraud that would misstate financial statements to affect the accounts as follows, taking each case independently. (Note: "Overstate" means the account has a higher value than would be appropriate under GAAP and "understate" means it has a lower value.) a. Overstate one asset; understate another asset. b. Overstate an asset; overstate stockholders' equity. c. Overstate an asset; overstate revenue. d. Overstate an asset; understate an expense. e. Overstate a liability;...
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