Your company received payment last month for a service that you provided this month. How will the business activity of the current month affect the basic accounting equation Multiple Choice Assets (Prepaid Expenses) will decrease, liabilities will not change, and Shareholders' equity (Service Revenue) will increase. Assets will not change; liabilities (Deferred Revenue) will decrease; and Shareholders' equity (Service Revenue) will increase. Assets (Cash) will increase, liabilities will not change, and Shareholders' equity (Service Revenue) will increase. Assets (Cash) will increase, liabilities (Deferred Revenue) will increase, and Shareholders' equity will not change.

Your company received payment last month for a service that you provided this month. How will the business activity of the current month affect the basic accounting equation Multiple Choice Assets (Prepaid Expenses) will decrease, liabilities will not change, and Shareholders' equity (Service Revenue) will increase. Assets will not change; liabilities (Deferred Revenue) will decrease; and Shareholders' equity (Service Revenue) will increase. Assets (Cash) will increase, liabilities will not change, and Shareholders' equity (Service Revenue) will increase. Assets (Cash) will increase, liabilities (Deferred Revenue) will increase, and Shareholders' equity will not change.

Name: TB 03-81 Your company received payment last month for...Your company
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: TB 03-81 Your company received payment last month for...Your company received payment last month for a service that you provided this month. How will the business activity of the current month affect the basic accounting equation?Multiple ChoiceAsse

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 3TP: Assume that you are the controller of a business that provides legal services to clients. Suppose...

See similar textbooks

Similar questions

a. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business? c. Compare general and administrative expenses to similar companies. Are they reasonable? d. What is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?
expenses. 3. Accounts often need to be adjusted because a. there are never enough accounts to record all the transactions. b. many transactions affect more than one time period. c. there are always errors made in recording transactions. d. management can't decide what they want to report. 4. The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. C. relationship between current assets and current liabilities. d. relationship between short-term and long-term liabilities. 5. The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit a. Accounts Payable. b. Purchase Returns and Allowances. C. Sales. d. Merchandise Inventory. EFocus
QUESTION 26 Which situation here might indicate a company has a low quality of earnings? The same accounting principles are used each year. Revenue is recorded when recognized Repair costs are capitalized and then depreciated. The financial statements are prepared in accordance with generally accepted accounting principles.
What Would You Do? You are responsible for preparing all of the journal entries for Regional Financial Services. You have correctly prepared the following entry for financial services provided on December 15: Your boss has asked you to change the date from December 15 to January 15 so that the business’s profit, and thus taxes, would be lower. Are you allowed to do this? What is your response to your boss? How should you handle this situation?
Assume that you are the controller of a business that provides legal services to clients. Suppose that the company has had a tough year, so the revenues have been lagging behind, based on previous years standards. What would you do if your boss (the chief executive officer [CEO] of the company) asked to reclassify a transaction to report loan proceeds of $150,000 as if the cash came from service fee revenue from clients instead. Would following the CEOs advice impact the companys accounting equation? How would reclassifying this one transaction change the outcome of the balance sheet, the income statement, and the statement of retained earnings? Would making this reclassification change the perception that users of the financial statements would have of the companys current year success and future year potential? Write a memo, detailing your willingness (or not) to embrace this suggestion, giving reasons behind your decision. Remember to exercise diplomacy, even if you must dissent from the opinion of a supervisor. Note that the challenge of the assignment is to keep your integrity intact, while also keeping your job, if possible.
a. What is your company’s primary revenue, secondary revenue, and gains? b. What is your company’s primary expenses, secondary expenses, financial activity generated expenses, and losses? c. What is the revenue trend? Does the 10-K or 10-Q discuss primary revenues, as well as other revenue types? d. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends?
1.Comment on the management's ability to manage the accounts receivable over the past two years. 2. What is a possible explanation for the decrease to the Wages and Salaries expense? 3. Explain the reason for the increase to the bank loan. 4. Comment on the current ratio. Is is good/bad? Why 5. Using all the information, make comments about the company’s overall performance over the past 2 years. • Complete this question using point form but fully justify your findings. • Comment on liquidity, solvency, and profitability • Would you recommend with company to investors? RETURN OF EQUITY IS 12.7%
The following is an effort to shift income in the period as desired by management. O a. Delay paying accounts payable. O b. Shipping products in one fiscal year rather than another. O. Not declaring dividends. O d. None of the above
*Choose true or false for the following statements: 1. The time period assumption is often referred to as the expense recognition principle. a. True b. False 2. A company's calendar year and fiscal year are always the same. a. True b. False 3. Accounting time periods that are one year in length are referred to as interim periods. a. True b. False
27.A company writes off as uncollectible an account receivable from a bankrupt customer. The company has an adequate amount in its Allowance for Uncollectible Accounts. What would be the effect of this transaction in the company's financial statements? a. Operating expenses for the period will increase. b. Total current assets will decrease. c. Net profit for the period will not be affected. d. Net profit for the period will decrease.
Suppose a business receives a bill for services rendered from one of itssuppliers. The business will pay the supplier next month. When the businessreceives the bill from its supplier, explain how this affect the accounting equationin terms of increasing or decreasing assets, liabilities, or owner’s equity?
PLEASE GIVE AN ANSWER TO THESE. THANK YOU! 1. What is the most possible reason why the balance of Home Office account in Lipa Branch’s book is higher than the balance of Investment in Lipa branch account in Home Office’s books?A. There is shipment to Lipa Branch from home office still in transit at the end of the year.B. Lipa Branch reported net income during the year but still unrecorded by the home office.C. The home office paid Lipa Branch’s liability without informing Lipa Branch.D. Lipa Branch failed to notify the home office about Lipa’s cash advances to Lina Branch. 2. Which of the following costs will be properly classified as prime costs?A. Factory overhead costs and direct material costsB. Direct labor costs and factory overhead costsC. Direct material costs and direct labor costsD. Indirect labor costs and indirect material costs 3. Under PFRS 15, what account will be presented by the entity in its statement of financial position where the customer has paid an amount of…