Business owners are given a choice between using the cash basis of accounting and the accrual basis of accounting, which of the two methods do you believe they would choose? Based on your selected method, will the financial statements presented show a true representation of the company's performance? Why or why not?
A company fails to recognize revenue for services performed but not yet received. Which of the following types of accounts are involved: (a) asset, (b) liability, (c) revenue, or (d) expense? For the accounts selected, indicate whether it would be debited or credited in the entry.
In what order should the financial statements be prepared in? or does the order not matter?
The accountant for Newman Production services failed to record an adjusting entry of $5,000 for unpaid taxes. How will this impact the current year financial statements? Be sure to state the type of account (Asset, Liability, Owner's Equity, Revenue or Expense) and whether it will be understated or overstated.
Business owners are given a choice between using the cash basis of accounting and the accrual basis of accounting, which of the two methods do you believe they would choose? Based on your selected method, will the financial statements presented show a true representation of the company's performance? Why or why not?
A company fails to recognize revenue for services performed but not yet received. Which of the following types of accounts are involved: (a) asset, (b) liability, (c) revenue, or (d) expense? For the accounts selected, indicate whether it would be debited or credited in the entry.
In what order should the financial statements be prepared in? or does the order not matter?
The accountant for Newman Production services failed to record an adjusting entry of $5,000 for unpaid taxes. How will this impact the current year financial statements? Be sure to state the type of account (Asset, Liability, Owner's Equity, Revenue or Expense) and whether it will be understated or overstated.
Related questions
For each item described: Identify the type of account (Asset,Liability, Equity, Revenue or Gain, Expense or Loss), normalbalance (Debit, Credit), financial statement (Balance Sheet, IncomeStatement), and whether the account is closed at the end of theperiod (Yes, No) by selecting the letter that best describes thoseattributes. If an account is a contra account, the answer will showthe account type in parentheses. Answer items may beused once, more than once, or not at all.
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The following account balances are taken from the December 31,2015, financial statements of ABZ Advertising Company. The companyuses accrual basis accounting. |
Advertising revenue $ 51,218
Cash 45,584
Accounts receivable 7,748
Interest expense 2,392
Accounts payable 5,200
Operating expenses 41,487
Unearned revenue 1,296
Equipment 19,975
Income tax expense 2,561
| The following activitiesoccurred in 2016: |
| 1. | Performed advertising serviceson account, $60,600. | |
| 2. | Received cash payments onaccount, $11,600. | |
| 3. | Received deposits from customersfor advertising services to be performed in 2017, $3,300. | |
| 4. | Made payments to suppliers onaccount, $5,200.
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| 1. What is the balance in the Cash account at December 31,2016? 2.What is the balance of Accounts Receivable at December 31,2016? 3.What is the amount of revenue that will be reported on theincome statement for the year ended December 31, 2016? |
