Solution for Which of the following statements is (are) true regarding the current (2020) US GAAP accounting treatment for intangible assets?… Adjustments are needed to ensure that the accounting system includes all of the revenues and expenses of the period. For fill-in-the-blank questions press or click on the blank space provided. Molly Maids provides cleaning services. A) The format of the audit report for public and nonpublic entities are identical. Adjusting entries always include ___________________________. True: Reporting financial information the same way from one fiscal period to the next is an application of the accounting concept Adequate Disclosure. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. Which statement(s) concerning cash is (are) true? Answer: A. An accounting period is the period of time covered by a company's financial statements. B. 5. Which statement(s) concerning cash is (are) true? b. 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. An account is said to have a credit balance if ________________________. Cash will always have more debits than credits. 16. Which of the following statements concerning repair and maintenance expenditures is true? Examples include selling, general and administrative (SG&A) expenseSG&ASG&A includes all non-production expenses incurred by a company in any given period. Allen Marks is the sole Stockholder of Great Marks Company. The accrual basis does not consider the revenue recognition principle. Since the work sheet is an informal aid, the accountant can use any format desired or choose not to prepare a work sheet at all. Common accounting periods for external financial statements include the calendar year (January 1 through December 31) and the calendar quarter (January 1 through March 31, April 1 through June 30, July 1 through September 30, October 1 through December 31). C. The equation can be stated as assets minus liabilities equals equity. Prior to the adjusting process, accrued revenue has ______________________. If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is _____. Common accounting periods for external financial statements include the calendar year (January 1 through December 31) and the calendar quarter (January 1 through March 31, April 1 through June 30, July 1 through September 30, October 1 through December 31). The left side of a T-Account is called the debit side. 25. C. Decreases stockholders' equity and decreases assets. The last day of the accounting period. 9. You are already subscribed. 21. The correct entry would be: 11. Your cash flow statement shows you how cash has changed in your revenue, expense, asset, liability, and equity accounts during the accounting period. This cycle consists of the following steps: 1. Read more about the author. The operating cycle for a retailer that sells on credit is: 19. D. All of the above are true. 14. _____ The work sheet is essentially a working tool of the accounting. D. Increases the balance of an expense account. The equation is an optional tool for accountants to use. 18. The annual accounting period for these businesses may be the 52- or 53-week fiscal years ending on the Saturday closest to February 1 or any other date. Calendar months such as March 1 through March 31, November 1 through November 30, etc. 1. Been earned and not recorded as revenue. 30. A. False: Total operating expenses on an income statement are deducted from gross profit to find income from operations. 23. 17. The amount of the credits exceeds the amount of the debits. A. Profit is the excess of cash inflows from income over cash outflows for expenses b. b. A. 2. According to IAS 38 Intangible assets, which of the following statements concerning the accounting treatment of research and development expenditure are true? Which of the following statements concerning payback analysis is true? 38) Which of the following statements is true concerning the acquisition of existing debt of a consolidated affiliate in the year of the debt acquisition? Providing a service to a customer on account ____________________________. A) Canadian Treasury bills tend to pay a higher rate of return than do long-term bonds. The assertion of completeness is an assertion that the financial statements are thorough and include every item that should be included in the statement for a given accounting period. All of the following statements regarding a work sheet are true except: 13-week fiscal quarters such as the 13 weeks ending on the last Saturday in April, etc. 12. Fiscal quarters such as May 1 through July 31, August 1 through October 31, etc. 4. 17. The statement of cash flows describes the company’s cash receipts and cash payments for a period of time. Analyze and journalize transactions. Receiving cash for services performed _________________________. Which of the following statements is true concerning the accounting for a partnership going through liquidation? C. Cash is increased by debiting the account. 15. C. What is the amount of net income of Great Marks Company during 2018, assuming that as of December 31, 2018, assets were $995,000 and liabilities were $270,000? Increases assets and decreases assets. A.) A. 28. The equipment had not yet been paid for. The retailers' quarterly accounting periods will be the 13-week periods, and the monthly accounting periods will be a 4- or 5-week time period. It can be called the profit and loss statement b. The heading must indicate the length of time the report covers c. It shows the change in the entity’s cash balance for the period d. It is divided into two sections, income and expenses 18. Which of the following entries records the receipt of cash for two months' worth of cleaning fees? During the closing process, the "Income Summary" account is closed-out to the _____________ account. It is common for … On occasion, it may also include depreciation expense, marketing expenses, CEO salary, and … If a company pays for an insurance policy that covers the next 12 months, which of the following needs to be journalized? Its quarterly accounting periods would be July 1 through September 30, etc. Closing entries are dated in the journal as of ___________________. If a magazine publisher receives an advance payment covering a 6-month magazine subscription, which of the following needs to be journalized? Office Equipment - credit balance of $500. It is also common for U.S. retailers to have accounting periods that end on a Saturday. Which of the following balances is always due to an error? The statement concerning accrual accounting that is true is: a. If a law firm has provided legal services to clients and the legal services have not been recorded, which of the following needs to be journalized? A) Cash flows from operations may be higher than expected for the company's sales B) The company may offer trade discounts to lengthen the collection period C) The company should expand operations with its excess cash A debit may signify a(n) __________________. B. A. 1.Which is a true statement regarding the accounting equation? There are at least four companies in a connecting affiliation. A work sheet does not substitute for financial statements. 4- or 5-week fiscal months such as the 4 weeks ending the last Saturday of February, etc. Which of the statements below are true regarding this process? _____ The work sheet is distributed to management and other interested parties. 19. The payback method ignores the time value of money concept. All of the following statements regarding income statement columns on the worksheet are true except: b) the balances in the income statement credit column are unearned revenues. Which of the following fixed asset accounts listed below will not have a related contra-asset account? 8. C. Increases assets and increases stockholders' equity. 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