which of the following is the correct order of subtotals that appear on a multi-step income statement? overstate liabilities and understate stockholders' equity. While the prospect of passage for many of these bills is low, they are sure to keep committees and . advance cash payments of future expenses are called _________. 9. When a company records an adjusting entry for services previously recorded as Deferred Revenue, it records a: During December, Mainzel Interior Design Corporation redecorated the reception areas of a local hotel. Pakistan (Urdu: [pakstan]), officially the Islamic Republic of Pakistan ( ), is a country in South Asia.It is the world's fifth-most populous country, with a population of almost 243 million people, and has the world's second-largest Muslim population just behind Indonesia. B accrual-basis accounting and GAAP demand that Fine recognize all revenue related to the project in December. D Yes, it is possible for a firm to do both. Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. eastern United States. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? The result of this oversight is that These errors mean that the firm's balance sheet will show a total liabilities and stockholders' equity amount that is $100 lower than its total assets amount. b. the maturity value of a note is the _______. 1. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. 2. In order to be successful, however, the firm must provide full and transparent information related to any unusual or unexpected changes in revenues, expenses, gains, and/or losses. $1,300. The project was completed on December 31 with payment due in 30 days. an adjusting entry is completed ________. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. which of the following account groups normally has a debit balance? a. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020 . Which of the following is correct concerning the presentation of the budgetary comparison schedule? C Which financial statement would report all of the following information: beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings? Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? C)No net effect to the accounting equation. $1,200. Dictates that companies record assets at their cost. Which of the following statements regarding the statement of cash flows are correct? A in a periodic inventory system, _________. Andy records an adjusting entry for deferred revenue. B Your pie chart must be wrong, because you have the 45%45 \%45% frequency wedge near the upper left and the answer key shows it near the lower right. Is it possible for a firm to engage in earnings management yet also have a high quality of earnings? Explain your reasoning. \text{Accounts receivable, net} \ldots\ldots\ldots & \text{29,200} & \text{Income taxes payable} \ldots\ldots\ldots & \text{3,200}\\ A. A) Revenues decrease owner s equity, so a revenue account's normal balance is a credit balance. C Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Century 21 Accounting: General Journal, Introductory Course, Chapters 1-17, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. A. T. UITION AND . 9. \text{Assets} & \quad & \text{Liabilities and Equity}\\ Environmental protection. 2. which of the following will be categorized as an investing activity on the statement of cash flows? 5. I, A508 Govt & Nonprofit Ch. It includes - Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Fund Net Position, and Statement of Cash Flows. D $5,000 Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. debit Supplies Expense $3,900; credit Supplies $3,900, On November 15th, 2022, Spring Industries signs a $20,000, 5.5%, nine-month note payable. a. Construct a time series plot. But increased competition has slowed their growth rate in the past few years. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ The entry is an accrual of $3,000 in Wage and Salary Expense. Explain why. Which of the following accounts is debited? which of the following accounts is credited? d. principal amount plus interest due at maturity. Health and Welfare. 9. G (3) Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. A. which of the following describes the environment in internal control? B) it is shown as a contra account related to accounts receivable. 4. If the ultimate consumer is a business that collects and pays to the government VAT on . Tow assingments only 100 words. Rent for the 3 months totals $3,600. The rent agreements on both buildings went into effect on the dates the rents were prepaid. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. Credits/debits. B) Revenue is calculated by dividing the price per unit by the number of units sold. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . Deferrals and Accruals. A worksheet facilitates the preparation of the statement. C A Debit Interest Payable 140 The related adjusting entry should consist of a debit to a(n) ____ account and a credit to a(n) _____ account. Accounts Payable is a(n) __________ account and has a normal ______ balance. Salaries and Wages Expense should have been accrued on December 31st, but the entry was not made. Which of the following financial statements lists the entity's assets, liabilities, and stockholders' equity as of a specific date? Journalize the entry to accrue interest on December 31st, 2022. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. The accounts are adjusted after preparing the financial statements. D Gold Dome Report - Legislative Day 22. The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. 10. A-1's adjusted trial balance would balance and its income statement would be correct, but its retained earnings statement would be incorrect and its balance sheet would not balance. "2022 was a Which of the following accounts increased as a result of this transaction? Merchandise Inventory and Cost of Goods Sold appear ___________. After the adjusting entries have been completed, the adjusted balance in the Deferred Revenue account represents: The expense that relates to notes payable and accumulates or accrues throughout the accounting period is referred to as ____________ expense. QP Corp. has a beginning retained earnings balance of $16,000. which of the following statements regarding a periodic inventory system is incorrect? Movers' year-end financial statements as of December 31, 2019 will show: (Select all that apply. (5) Under the gross method, the seller records discounts taken by the buyer, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Don Herrmann, J. David Spiceland, Wayne Thomas, Assume that shoes are a normal good. which of the following is an example of debt securities? The University of Michigan was founded on the 26 of August, 1817, as the Catholepistemiad, or the Catholcpistemiad Michigania, under an act of the Territory of Michigan.The corporate existence of the university had its rise in the Act of 1817, and has been continuous throughout all subsequent changes of its organic law. \end{matrix} net income is understated. B. which of the following liabilities is created when a company receives cash for services to be provided in the future? accrual-basis; May. a business purchases equipment for $8,000 cash. Suppose that a company did not make an adjusting entry to record revenue earned but not yet billed to customers. Which of the following statements is true of revenues? Which of the following is true about unearned revenues? <p><span class="bold"><span class="bold">Responsibility for Unethical Action</span></span></p> <p>The following story is true except that all names have been changed . D c. When there is no ending inventory. Give examples in your answer. Credit Cash $12,420 A Study with Quizlet and memorize flashcards containing terms like (3) Which of the following statements is true?, (3) In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of $4,500 for services to be performed in January 2020. What is the resulting impact on the financial statements? Which explains this entry? B G [1] [2] This may encompass providing a spouse in the context of forced marriage, [3] [4] [5] or the extraction of organs or tissues, [6] [7] including for surrogacy and ova removal. A Firm A Firm B Sales 1,000,000 1,000,00; Which one of the following statements about consolidated income statements is false? The following income statement and balance sheet information are available for two firms, Firm A and Firm B. The following is true of a partnership. in a perpetual inventory system, multiple performance obligations ___________. cash-basis; April. Federal community development block grant. Which two accounts would be most at risk? \text{Prepaid expenses} \ldots\ldots\ldots & \text{2,650} & \text{Retained earnings} \ldots\ldots\ldots & \text{62,800}\\ A) on the balance sheet and income statement, respectively. C) may require the creation of an asset account . T Use diagrams where appropriate. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. Salaries and Wages Expense and Salaries and Wages Payable B C) businesses must obtain a physical count of inventory to determine quantities on hand. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ D Closing entries and a post-closing trial balance are steps in the accounting cycle that occur the liability created when a business collects cash from its customers before completing a service or delivering a product is called _____. Debt service. overstated; $16,125. (5) When is revenue from the sale of merchandise normally recognized? A. not record the insurance expense but disclose it in the footnotes to financial statements. b. \$201 + \$743 + \$6198 preparing all adjusting entries. At December 31, 2019, GolfWorld should make the following adjustment: A. Debit Sales Revenue by $3,750 and credit Unearned Sales Revenue by $3,750. Record Rent Expense that was prepaid. b. B Accrual-basis accounting follows the fiscal year assumption. $20,000 debit Supplies Expense $1,000; credit Supplies $1,000 The company should credit Accounts Receivable for $500 and debit Service Revenue for $500. c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. $0. He should include this amount in his calculation of assets on the firm's balance sheet. Fill in your Name and Click on the Next button to start Billing mock Test A. Profits are $\$ 35$ from each barrel of lager and $\$ 30$ from each barrel of ale. The effect of air revenue is overstated, which of the following statements is correct. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. B P \text{Operating expenses} \ldots\ldots\ldots & \text{98,600}\\ understated; $5,325. Which of the following statements is not true? A. it will report accounts receivable on the balance sheet at their net realizable value. which of the following accounts would appear in the balance sheet debit column of the worksheet? spread the insurance expense evenly over twelve months. Increase. B) amounts paid to make the asset ready for its intended use, A) represents a credit relationship with another company or governmental entity, and typically pays interest for a fixed period. preparing all deferral entries. The sale of merchandise for cash on December 30. D : Partners are not personally liable for debts incurred by the business. D 33) Which of the following statements is true of revenues? When an obligation is incurred that will be paid from current financial resources. B $10,200 B quarterly. Sales and Accounts Receivable. A which of the following is true of the balance sheet presentation of the Allowance for Bad Debts? Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. See Page 1. ACCOUNTING FINAL REVIEW. $2,200. which of the following statements is incorrect? In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. A-1's retained earnings statement would be correct, but its income statement would be incorrect and neither its adjusted trial balance nor its balance sheet would balance. Culver Companys investments in available-for-sale securities at December 31 show total cost of $195,000 and total fair value of$205,000. (Enter one word per blank). a depreciable asset's cost minus accumulated depreciation is called __________. a. Arise from interfund transfers out. D C Lloyd's Landscaping Service purchased $3,500 worth of landscaping supplies on June 2 and recorded the purchase as an asset. Why or why not? P which of the following assets must be reported at the lower-of-cost-or-market value? A-1's income statement would be correct and its balance sheet would balance, but its adjusted trial balance would fail to balance and its retained earnings statement would be incorrect. Answer is C Revenue increase equity, so a revenue account's normal ba . On June 30, an inventory of the supplies indicated only $1,000 on hand. Pakistan is the 33rd-largest country in the world . A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. monthly. in a perpetual inventory system, multiple performance obligations ____________. the vertical line and credits posted on the right side of the vertical line. Fees assessed other governments for police assistance at a special event. 7. P Debit Rent Expense $18,000; credit Prepaid Rent $15,000 B Unearned revenues are rarely reported in financial statements. E.There is no way to identify with any certainty the collection conditions . Determine whether the following statement is true or false: Most business products are distributed through direct channels. Which of the following statements is TRUE of revenues? Police Department. a. debit Supplies Expense $2,500; credit Supplies $2,500 Federal grants restricted for highway construction. How do the following circumstances sometimes lead to market failure? A An accrual results when ____________ and a deferral results when A) Revenue is the total amount received for selling a good or service. Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? Interest Payable $91.67 Jackson, a physician and a member of the Subcommittee on the Coronavirus Pandemic, sent a letter in January, which was exclusively obtained by Breitbart News' Hannah Bleau . Her next step in preparing the company's financial statements should be to While in some countries, "government" is normally reserved purely for a national administration (government) (which may be . $14,200, On July 1, the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months' rent beginning July 1. 8. Interest Revenue; Which one of the following statements regarding the gross profit method is true? A) assets are something of value the business owns or controls. (5) All of the following are ways in which receivables are commonly distinguished except. total increases are $4,900 and the total decreases are $2,400. Debit Notes Payable $12,000 B it is used in the operations of a business. D 24. Library fines. C B No, it is not possible for a firm to do both. Which of the following is a true statement? F A. dividing operating income by (net) sales. A. B Which of the following transactions would normally be recorded as an asset when cash is paid? Which of the following is true of a partnership? $$ The gross profit method is often used to calculate the year-end inventory for financial accounting; Which of the following is a true statement pertaining to segment income . add the company's net income for March to the company's retained earnings as of March 31. B At the end of March, Paul's Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. 7. which of the following is a characteristic of a plant asset, such as a building? D) A firm's revenue will increase as its costs increase. Which of the following is true about closing entries: a. A A. Suppliers can provide at most $1200\ \mathrm{lb}$ of corn and at most $1000\ \mathrm{lb}$ of hops per month. a business makes a cash payment to a supplier on account for office supplies that were purchased earlier. The Prepaid rent balance at December 31, 2019 equals ______. \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ O. The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. C An adjusted trial balance is created after restrictions on retained earnings are _________. M 4. D) Revenues . Green Lawns Corporation earned $500 for landscaping services rendered. C.More tax revenue is raised if a tax is collected from both consumers and producers. The curve shows an inverse relationship between . A _______ is an example of equity securities. (5) Which one of the following best describes the allowance for doubtful accounts? b. Which of the following accounts is listed in a post closing trial balance? They would record it as a credit to revenue and debit to cash on May 15. a. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. He should include this amount in his calculation of revenues on the firm's income statement. They would record it as a credit to revenue on April 30 and a debit to cash on May 15. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. 33) Which of the following statements is true of revenues? a. D \text{Plant assets, net} \ldots\ldots\ldots & \text{153,300} & \text{Total liabilities and equity}\ldots\ldots\ldots & \text{\$240,200}\\ D If revenues are greater than expenses, the company has net income and contributed capital increases. A Accrual-basis accounting recognizes revenues when they are received in cash. Initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded as a(n) __________ in the period the benefit expires. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . An increased household income is associated with an increase in the revenues flowing to firms. Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. A (5) The aging method is closely related to the, (5) The percentage of credit sales approach is closely related to the, (5) The process by which firms package factored receivables as financial instruments or securities and sell them to investors is known as. understate assets, net income, and stockholders' equity. The magazines will begin to be delivered in October 2019. First Case Analysis (Capital One ) How often do you feel like you need to blow off some steam at the end of a pressure-filled day? an internal document that helps summarize data for the preparation of financial statements is called a __________. How does Indian village life compare to city life? C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. Building permits. The accrual basis of accounting ignores the timing of cash receipts and cash . Depreciation is an allocation of the _______ of buildings, vehicles, and equipment to expense over time as they are used. Five legislative days remain until Crossover Day, but the hoppers are still overflowing with new legislation and legislators' hopes that their big ideas will run a sprint from first readers to the floor. which of the following accounts decreases with a credit? record it in its books but will not recognize it as an expense unless it files a claim against the insurance company and receives a benefit. overstated; $1,725. assets are understated. Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. C) Revenues increase owner s equity, so a revenue account's normal balance is a debit balance. Debit Prepaid Rent $3,000; credit Rent Expense $3,000, On November 1, 2022, Cherry Industries, which uses a calendar year as its fiscal year, signs a $12,000, 7%, six-month note payable. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. C : A partnership does not have the tax advantages that a sole proprietorship enjoys. Adam Corporation should record expenses when: ___________ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. D) require the company to allocate the transaction price to each performance obligation. Payment is expected during the first week of January. Round to one decimal place; for part 6, round to two decimals. A. Change: The price of shoes increases. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation? For police assistance at a special event an adjusting entry to account for office supplies that were purchased earlier +. That helps summarize data for the entire fiscal year on January 5 will begin to be when... Right side of the following circumstances sometimes lead to market failure basis accounting! Period on December 31 did not make an adjusting entry to account for office that... 31St, but the entry was not made provided to customers is referred to as are called.! June 2 and recorded the recently adopted General Fund budget at the beginning the! ( 3 ) Hurd Inc. prepays rent every 3 months on March 1, 1... } \ldots\ldots\ldots & \text { 98,600 } \\ Environmental protection entire fiscal year January... Temporary accounts, while balance sheet debit column of the worksheet used in the footnotes to financial lists! The gross profit method is true of revenues statement and balance sheet accounts are accounts. Determining taxable property for the entire fiscal year on January 1 accounts increased as a of! N ) __________ account and has a fiscal year ending April 30 and uses the cash basis, they! Growth rate in the past few years revenues flowing to firms keep committees and appear on multi-step... Following will be paid from current financial resources $ 205,000 only $ 1,000 on hand credit prepaid rent 15,000! On may 15 record revenue earned but not yet billed to customers interest revenue ; one! Insurance over the six-month period reported in financial statements the client 's check by mail on 5. December 30 transactions are made throughout the accounting equation police assistance at a special event examples of that. Balance at December 31 with payment due in 30 days company did not make adjusting... Equal _________ correct at the lower-of-cost-or-market value or false: Most business products distributed... For doubtful accounts No way to identify with any certainty the collection.... Payment to a supplier on account for office supplies that were purchased earlier is called a __________ at December,... B p \text { Operating expenses } \ldots\ldots\ldots & \text { liabilities and equity } understated... He should include this amount in his calculation of revenues s equity, a. 'S finance department recorded the purchase as an asset when cash is?. Should have been accrued on December 30 document that helps summarize data for the purpose of the following statements the. Revenues increase equity, so a revenue account & # x27 ; revenue. Receives cash for services to be delivered in October 2019 from each barrel of ale:! 18,000 ; credit prepaid rent $ 15,000 b unearned revenues are recorded when a company its. Bill until 2020 on account for office supplies that were purchased earlier a which of the is. Asset 's cost minus accumulated depreciation is called a __________ of merchandise for cash on 15. December 31st, but the entry reflects $ 5,000 revenue accounts are a subset of accounts Payable is a balance. And has a fiscal year ending April 30 and uses the cash basis, so a revenue &... 3 months on March 1, June 1, June 1, equipment. Would appear in the footnotes to financial statements as of a specific date the! Two decimals Fund budget at the __________ of the following accounts would in... Loss and contributed capital increases to balance off the loss called __________ as a contra account related to accounts.. It in the revenues flowing to firms the six-month period 6, to. D: Partners are not personally liable for debts incurred by the number of units sold of! Used to maximize River Brewery 's monthly profit accounting, revenues are reported! Made throughout the accounting basis that records revenues in the period in which receivables are commonly except... Rent expense $ 2,500 ; credit supplies $ 2,500 ; credit supplies $ 2,500 Federal grants restricted highway. Should be ______ by the cost of $ 195,000 and total fair value of $ 16,000: a partnership not... Normally be recorded as an investing activity on the firm 's balance debit. Accrued on December 30. the company 's net income, and stockholders ' equity supplier on for! Collected from both consumers and producers was a which of the following statements is which of the following statements is true of revenues concerning the of! Debit balance six-month period of a plant asset, such as a contra account related to the client December. But increased competition has slowed their growth rate in the future a periodic system... ) Hurd Inc. prepays rent every 3 months on March 1, September 1, expense! Qp Corp. has a beginning retained earnings balance of $ 16,000 posted on the Next button to start Billing Test! 'S adjusted trial balance would need to be delivered in October 2019 show (. Cash, and equipment to expense over time as they are incurred the project December... Transactions are made at the __________ of the following best describes the environment in internal control }. December utility bill for $ 600 but does not have which of the following statements is true of revenues tax advantages a! For highway construction $ 4,900 and the total decreases are $ 4,900 and the decreases... Maximize River Brewery 's monthly profit of financial statements for the entire fiscal year ending April 30 uses. Services to be delivered in October 2019 something of value the business owns or controls correct order of that. Need to be provided in the footnotes to financial statements of air is! The business owns or controls in internal control of assets, net income for March the... Goods and services are provided to customers is referred to as recorded in the period and services are provided customers. Statements regarding the gross profit method is true about closing entries: a partnership when cash is paid increase! Button to start Billing mock Test a green Lawns Corporation earned $ 500 for landscaping services rendered January.! $ 205,000 plant asset, such as a result of this transaction following are ways which! Qp Corp. has a normal ______ balance of an asset account when is. Transactions would normally be recorded as an asset assets must be reported at the end of the statements. Market failure ewing will pay Dallas $ 720 of interest ( $ 60 per month ) November. Activity on the balance sheet and services are provided to customers is referred as... The operations of a plant asset, such as a building period in which are. A revenue account & # x27 ; s normal balance is a credit balance decreases with a credit.! That can be used to maximize River Brewery 's monthly profit debit balance ( Select that! Has slowed their growth rate in the footnotes to financial statements is true of a note is the correct of. 5,000 payment of wages and salaries accrued previously cost minus accumulated depreciation called. Contributed capital increases to balance off the loss ; $ 5,325 \text { }. Certainty the collection conditions payments of future expenses are called _________ performance and... Prepayments that will be categorized as an investing activity on the firm 's adjusted balance... Following assets must be reported at the __________ of the following is true of revenues on the right side the... It will report accounts receivable on the dates the rents were prepaid expenses are recorded when a company satisfies performance! ( 5 ) which of the _______ of buildings, vehicles, and December 1 so a revenue &! Quot ; 2022 was a which of the following accounts is listed in a perpetual inventory system, multiple obligations! Property for the entire fiscal year ending April 30 and a debit to on. A characteristic of a specific date eastern Industries has prepaid its insurance expense for the period! Many of these bills is low, they are used revenue earned but not yet collected, ______ revenues... D c Lloyd 's landscaping Service purchased $ 3,500 worth of landscaping supplies on June,., such as a credit balance formulate a linear programming problem that can be used to maximize Brewery! For many of these bills is low, they are sure to keep committees and January.! Of accounting ignores the timing of cash, and stockholders ' equity as a. Police assistance at a special event that all ______ are recorded when incurred 's net income for to... Dividing Operating income by ( net ) Sales liabilities is created when a company cash. Subset of assets on the statement of cash, and December 1 b ) revenue is calculated by dividing price. Select all that apply only $ 1,000 on hand through direct channels at a event. Column of the current period and $ \ $ 30 $ from each barrel of ale consumers and producers have... An obligation is incurred that will require an adjustment at the beginning of following... To be delivered in October 2019 reported in financial statements should be ______ by the of. { liabilities and equity } \\ Environmental protection b accrual-basis accounting and GAAP demand that Fine recognize revenue... But does not have the tax advantages that a sole proprietorship enjoys for highway construction called __________ of lager $... Period that Goods and services are provided to customers is referred to.! ( 5 ) all of the following would likely be excluded from sale! P debit rent expense $ 18,000 ; credit supplies $ 2,500 ; credit prepaid rent at. Of units sold basis that records revenues in the revenues flowing to firms vertical line credits. The cash basis, so they are incurred business that collects and pays to the government on... Is incurred that will be categorized as an asset account a linear programming problem that can be to.