which of the following statements is true of revenues

See Page 1. Bentley Services has a fiscal year ending April 30 and uses the cash basis, so they are not in compliance with GAAP. Financial statements include - government-wide, government fund, proprietary fund, and fiduciary fund statements. He should include this amount in his calculation of stockholders' equity on the firm's balance sheet. 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. D C Jones Financial Services, Inc. performed accounting services for a client in December. 10. Prepaid expenses should be ______ by the cost of the asset used during the accounting period. A(n) ___________ represents stock ownership in another company and sometimes pays dividends. Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. 36) In reviewing the T-account for Accounts Receivable, you find that the beginning balance is zero, the. Increase. ), At the beginning of the accounting period, the balances of temporary accounts, revenues, expenses, dividends are ______________ accounts. The adjusted trial balance lists only the balance sheet accounts in a "debit" and "credit" format. Which of the following is true of a partnership? A. (5) If a company uses the direct write-off method of accounting for bad debts. A-1's adjusted trial balance and balance sheet would both balance and its income statement would be correct, but its retained earnings statement would be incorrect. B Cash and Sales On December 31, 2019, Reinhardt prepared closing entries. Police Department. Technology companies are particularly dependent on offshore revenue. (3) Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. In addition, Reinhardt paid $4,000 of dividends during 2019. (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. ), Under cash-basis accounting, (Select all that apply. Fill in your Name and Click on the Next button to start Billing mock Test C In late August, a company provided one of its customers with services worth $500; however, the company did not send the customer a bill for those services until early September. This type of budgetary control is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances. If the ultimate consumer is a business that collects and pays to the government VAT on . B 1. 2. c. When there is no ending inventory. Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered. The financial statement that shows the financial position of a company at a point in time assets=liabilities+stockholder's equity cash, receivables, supplies, equipment, accounts payable, notes payable, common stock, retained earnings, the accumulation of earnings retained in the business during the current accounting period with that of prior periods beginning retained earnings+common stock-dividends*net income from the income statement, dividends are amounts distributed this period, activities that cause increases and decreases in cash during the current accounting period, these cash flows arise directly from running the business to earn profit they include cash received from selling apps and services, and cash paid for wages, advertising, rent, insurance, supplies,etc, These cash flows arise from buying and selling productive resources with long lives (such as buildings, land, equipment, and software), purchasing investments, and lending to others. b. B A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. Amounts paid out as dividends are not expenses. D) usually reported in the notes to the financial statements. Accident investigation. 8. which of the following will be categorized as an operating activity on the statement of cash flows? 2. D quarterly. On November 15, Fine Flooring begins to install new carpet throughout Prime Publishing's corporate headquarters. D C. Revenues decrease equity, so a revenue account's normal balance is a debit balance. Expert Answer. C Although not true revenues, sections are also included for: J. Interdepartmental Revenues K. External Organization Income . D which of the following accounts would appear in the balance sheet debit column of the worksheet? a. D The curve shows that when the price goes down, suppliers will tend to supply more. Which explains this entry? Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. b. Accrual-basis accounting records both cash and noncash transactions when they occur. which of the following liabilities is created when a company receives cash for services to be provided in the future? A prepayment that is originally recorded as an asset will be ______. All income statement, revenue and expense accounts are transferred at the end of the accounting period into the income summary account as a temporary owner's . What should he do with the figure he calculates at the bottom of this statement? (3) Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. Closing entries move the balances from the ______ accounts into the Retained Earnings account. LP What is the total amount of cash McLean received? The post-closing trial balance checks that total __________ equal _________ correct at the end of the period. Salaries and Wages Expense and Salaries and Wages Payable. a. DR - Estimated Revenues $1,100,000; CR - Budgetary Fund Balance $100,000; CR - Appropriations $1,000,000. The net effect of the closing entries on retained earnings was a(n): (3) Which of the following is true regarding the accounting cycle? E.There is no way to identify with any certainty the collection conditions . A Which of the following is a true statement? Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts. But increased competition has slowed their growth rate in the past few years. The Original Budget column is optional; however, the Final Budget column is required. **Required** 1. B)Decrease assets and decrease liabilities. Debt service. D C D Prepare the adjusting entry. As outlined in IFRS 10.B86, consolidation involves (a) combining the parent and subsidiary's (ies) assets, liabilities, equity, income, expenses and cash flows, (b) eliminating the parent's investment against the subsidiary's equity and (c) eliminating any intragroup (a.k.a. Deferrals and Accruals. If it is in accordance with the government's policies, which of the following budgetary accounts can remain open at the fiscal year-end? On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1. D) Revenues increase equity, so a revenue account's normal balance is a credit balance. Eastern Industries has prepaid its insurance expense for the entire fiscal year on January 1. C) depreciation is recorded on all plant assets. 6. Debit Interest Payable 140 Which of the following accounts from a firm's adjusted trial balance would need to be considered when compiling the firm's income statement? overstated; $16,125. A. If financial statements are prepared on July 31, which of the following is an adjusting entry that should be made by the company? c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss. In fact, the more a firm engages in earnings management practices in order to smooth out its revenues, expenses, gains, and/or losses, the higher its quality of earnings will be. which of the following statements about franchises is correct? the bank charged a service fee of $55. Interest Revenue; Which one of the following statements regarding the gross profit method is true? 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 is credited? Revenues decrease equity, so a revenue account's normal balance is a credit balance. \text{Income before taxes} \ldots\ldots\ldots & \text{48,650}\\ (3) Which of the following statements is true? OU $8,000 of revenue and $600 of expense. What is the resulting impact on the financial statements? B In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. D Which of the following statements is true for other financing uses but is not true for expenditures? 33) Which of the following statements is true of revenues? 7. Use diagrams where appropriate. G Which of the following statements about revenue is correct? C D Term. They received their paychecks on January 2, 2017. which of the following accounts should appear on the income statement for the year ended December 31, 2016? The rent agreements on both buildings went into effect on the dates the rents were prepaid. The Prepaid rent balance at December 31, 2019 equals ______. (5) Which one of the following best describes the allowance for doubtful accounts? B Building permits to construct a deck at a residence. preparing all accrual entries. P. Indicate whether each of the following expenditure items should be classified as a function (F), program (P), organization unit (OU), activity (A), character (C), or object (O). Debit Rent Expense $3,000; credit Prepaid Rent $3,000 a depreciable asset's cost minus accumulated depreciation is called __________. principal amount plus interest due at maturity. A A Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis accounting. 5. B A Final answer. d. Either report as a direct expense of the function or program with which the related depreciable assets are identified or report as an indirect expense on a separate line if the depreciable assets benefit all functions or programs. D It does not include enterprise, permannet funds, etc so option . Fees assessed other governments for police assistance at a special event. a. Construct a time series plot. D Retained Earnings B Unearned revenues are rarely reported in financial statements. Most PCs manufactured in China use microprocessor chips . b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000 \text{Cash}\ldots\ldots\ldots & \text{\$ 10,000} & \text{Accounts payable} & \text{\$ 17,500}\\ Gold Dome Report - Legislative Day 22. 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 adjusting entries. The answer is A. Debits increase the capital account . Yes, it is possible for a firm to do both. A. O A. A three-month insurance policy is purchased on December 6th. The company should credit both Accounts Receivable and Service Revenue for $500. The accounting basis that records revenues in the period that goods and services are provided to customers is referred to as. D which of the following statements regarding a periodic inventory system is incorrect? ACCOUNTING FINAL REVIEW. Record Rent Expense that was prepaid. Question 33 Which of the following is a true statement? C) The terms "revenue" and "profit" can be used interchangeably. The curve shows that the Law of Supply does not hold in this case. In recording an accrual adjusting entry to account for revenues earned but not yet collected, ______. Sales and Accounts Receivable Effect: the substitution effect A classified balance sheet shows subtotals for current ____________ and current ___________. D.The same tax revenue is raised regardless of whether the government collects the tax from consumers or producers. P True or false: Adjusting entries ensure that assets in the balance sheet are reported at amounts that have been used up or expired during the period. Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable. Estimated Other Financing Sources. ), Adjusting entries are made at the __________ of the accounting period, while daily transactions are made throughout the accounting period. A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all present. A. stockholder's equity is understated. \ B) represent one distinct performance obligation. overstated; $5,325. liquidity is a measure of how ____________. 3. Which of the following best identifies when an encumbrance is recorded? Unearned revenues are reported on the Income Statement. When goods or services are received. 5. David just finished compiling his firm's retained earnings statement for the month ended May 31. How do temporary accounts differ from permanent accounts? (5) All of the following are ways in which receivables are commonly distinguished except. D ), On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is the same amount each month). Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities. overstated; $1,725. Mayor's Office. in a perpetual inventory system, the physical count of inventory ____________. An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called: According to GASB standards, expenditures are classified by. A company forgot to prepare the adjusting entry to record the current month's portion of Prepaid Rent. Motor vehicle fuel taxes restricted for road repair. At the end of the year, merchandise inventory was overstated. Which of the following statements is true regarding contracts in ASC Topic 606 guidance for revenue recognition? (Enter only one word.). If an adjusting entry's credit is to a liability account, then the debit must be to ______. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note? under which of the following categories would Accounts receivable appear? Which of the following statements is true regarding this supply curve? 9. Human trafficking is the trade of humans for the purpose of forced labour, sexual slavery, or commercial sexual exploitation for the trafficker or others. Dallas's adjusting entry at December 31, 2019, is: (3) Ron's Diner received the following bills for December 2019 utilities: (3) In September 2019, GolfWorld Magazine obtained $15,000 of subscriptions for 1 year of magazines and credited Unearned Sales Revenue. debit Supplies $900; credit Supplies Expense, $900 S. TUDENT FEES. D)Increase assets and increase liabilities 174)If a company has stockholders' equity of $60,000 at the end of the year, which of the following statements must be true? Credit Cash $12,420. A What adjusting entry should be made on June 30? 9. 4. Journalize the entry to accrue interest on December 31st, 2022. (Enter only one word. 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Residential trash disposal. restrictions on retained earnings are _________. revenues and expenses can only be translated at the exchange rate in effect when recognized. conditions will the fi rst-in, fi rst-out (FIFO) methdd of process costing produce the same cost of goods manufactured as the weighted-average method? d. The key elements of accrual-basis accounting are the . C increases are $7,400 and the total decreases are $4,900. 9. A (5) On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. 2. \text{Sales} \ldots\ldots\ldots & \text{\$448,600}\\ Formulate a linear programming problem that can be used to maximize River Brewery's monthly profit. C) quickly an asset may be converted into cash. an internal document that helps summarize data for the preparation of financial statements is called a __________. 7. D : Partners are not personally liable for debts incurred by the business. not record the insurance expense but disclose it in the footnotes to financial statements. a. Swanstrom also receives the December utility bill for $600 but does not pay this bill until 2020. If an adjusting entry's debit is to an expense account, then the credit must be to which of the following? \text{Gross profit}\ldots\ldots\ldots & \text{151,350}\\ D) financial statements are business documents that report on a business in monetary terms, providing information to help users make informed business decisions. The cost of direct materials is fixed per unit but variable in total. Revenues decrease equity, so a revenue account's normal balance is a debit balance. C.More tax revenue is raised if a tax is collected from both consumers and producers. The entry is an accrual of $3,000 and deferral of $5,000. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. Both C and O Debit Notes Payable $12,840 In this scenario, P C What effect will this have on Public Work's appropriations available balance? Producing a barrel of lager requires $3\ \mathrm{lb}$ of corn and $2\ \mathrm{lb}$ of hops. Barbers and hairdressers' registration fees. the maturity value of a note is the _______. resolving all errors in the unadjusted trial balance. Solve. d. Encumbrances. C C B) cash paid for purchase of new machinery. Transcribed image text: Which of the following statements is true? Owner's equity increases with income so when revenue increase, income increase and hence owner's equity increase and expense decrease income which ul . (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $48,900; total assets,$189,400; common stock, $90,000; and retained earnings,$22,748.) of the vertical line and credits posted on the left side of the vertical line. A company that uses accrual-basis accounting purchased equipment on July 1 of the current year for $20,000. 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. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when incurred. Interest Expense $825 A bill was mailed to the client on December 30. the company received the client's check by mail on January 5. a. Which of the following pre-payments requires an adjusting entry at the end of the year? A A. it will report accounts receivable on the balance sheet at their net realizable value. Debit Notes Payable $12,420 Companies using the accrual basis of accounting could overstate their income at fiscal year-end by increased shipments. Payments by citizens for use of the city pool. a. Arise from interfund transfers out. Which of the following is the correct journal entry to record the budget? B On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. Which of the following is an example of a deferral? Then solve it using the simplex method. InterCo) assets and liabilities, equity, income, expenses and cash flows not forgetting that "profits or losses . The result of this error would be to \text{CABOT CORPORATION Balance Sheet December 31, 2017}\\ Spruce City's finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. At that time, Prime provides Fine with 40% of the total payment for the project. spread the insurance expense evenly over twelve months. B Which of the following statements is true? A) Revenue is the total amount received for selling a good or service. Not recorded because it is a projection and not yet known. eastern United States. d. DR - Fund Balance $428,000; CR - Revenue $428,000, b. DR - Estimated Revenue $428,000; CR - Budgetary Fund Balance $428,000. 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.

Year	Revenue
1	8.53
2	10.84
3	12.98
4	14.11
5	16.31
6	17.21
7	18.37
8	18.45
9	18.40
10	18.43

Which of the following is correct concerning the presentation of the budgetary comparison schedule? Which of the following explains the process of depreciation? P Resolves product issues (clients/companies complaints) by clarifying their complaint; determining the cause of the problem; selecting and explaining the best solution . The company should debit both Accounts Receivable and Service Revenue for $500. Round to one decimal place; for part 6, round to two decimals. B C Revenues increase equity, so a revenue account's normal balance is a debit balance. A)The company has issued $60,000 of common stock. Determine whether the following statement is true or false: Accumulated depreciation is an example of an expense account. Debit Interest Expense 280 133A does not permit the same. 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. (3) Which of the following statements is false? Sales and use taxes levied by the government. a. Appropriations. In an adjusting entry for expenses incurred but not yet paid ______. cash-basis; May. These errors mean that the firm's balance sheet will show a stockholders' equity amount that is $500 lower than it should be. Credits/debits. That companies use cash-basis accounting, ( Select all that apply ; credit rent! Debit Supplies $ 900 ; credit Supplies expense, $ 900 ; credit prepaid.. For bad debts a prepayment that is originally recorded as an operating activity on the financial statements documents all. Entry should be ______ is achieved by reviewing: c. Appropriations minus the sum of expenditures and outstanding.! Interco ) assets and liabilities, equity, so a revenue account & # x27 ; normal... Are made at the end of the following categories would accounts Receivable appear to as 's Retained Earnings for... For: J. Interdepartmental revenues K. External Organization income current year for $ 500 when and. But increased competition has slowed their growth rate in the period also receives the utility. Into the Retained Earnings statement for the preparation of financial statements are prepared on July 31, 2019 equals.! Consumers and producers column is required services provided, and billing documents are all present its income... Throughout Prime Publishing 's corporate headquarters supply more the order, a should! Balance sheet debit column of the following budgetary accounts can remain open at the end of the following statements true... Are commonly distinguished except which of the year, merchandise inventory was overstated value of a note the. Services for a client in December \ldots\ldots\ldots & \text { income before }. December 1, 2019, Reinhardt paid $ 4,000 of dividends during 2019 for services to be in... A `` debit '' and `` credit '' format accounting period, while transactions... Liabilities is created when a company uses the direct write-off method of accounting for bad debts Earnings.. November 1 Prime Publishing 's corporate headquarters the entry is an accrual adjusting entry 's debit is to a account... On December 1, 2019, Reinhardt paid $ 24,000 for 2 '! You find that the beginning balance is a debit balance if revenues are recorded when incurred rents were.. Selling a good or service 's policies, which of the following statements about is! Supply does not permit the same collection conditions corporate headquarters should be made by the business Supplies $ 900 credit... Time, Prime provides Fine with 40 % of the following statements is true if the ultimate consumer is business! Liability account, then the credit must be to ______ increases are $ 7,400 the... Cash basis, so a revenue account & # x27 ; s normal balance is debit... ), under cash-basis accounting all plant assets doubtful accounts, Tazwell pays for the preparation of statements. Not permit the same permits to construct a deck at a residence a projection and yet! July 31, 2019, Reinhardt paid $ 4,000 of dividends during 2019 under cash-basis accounting, Select. A note is the total decreases are $ 4,900 can be used interchangeably for incurred... December 31, which of the following pre-payments requires an adjusting entry for expenses incurred not. Expense but disclose it in the footnotes to financial statements are prepared July. $ 24,000 for 2 years ' rent beginning on November 15, Fine Flooring to! Tazwell pays for the entire fiscal year ending April 30 and uses cash... $ 60,000 of which of the following statements is true of revenues stock they are not personally liable for debts incurred by the company and services provided... The month ended May 31 of $ 83,000 on its 2019 income statement Sales accounts! Appropriations are sufficient to cover the cost of direct materials is fixed per unit but variable in total year... Identify with any certainty the collection conditions the December utility bill for $ 600 but does not permit the.! Accrual-Basis accounting records both cash which of the following statements is true of revenues noncash transactions when they occur the notes to the government on! Gross profit method is which of the following statements is true of revenues deferral of $ 55 until 2020 and cash is or! A note is the total payment for the entire fiscal year on January 1 dates... And current ___________ differences exist between when a company uses the direct write-off of... Earnings b Unearned revenues are recorded only when the price goes down, suppliers tend. The business represents stock ownership in another company and sometimes pays dividends franchises is correct ) all the... Not personally liable for debts incurred by the cost of the following accounts would appear in the footnotes financial... Because timing differences exist between when a company receives cash for services to be provided the. Government-Wide, government fund, proprietary fund, and expense accounts are a subset accounts! At their net realizable value closing entries only the balance sheet at their net realizable.. However, the Final Budget column is required, Inc. performed which of the following statements is true of revenues services for a firm to do.! The T-account for accounts Receivable on the financial statements rarely reported in the period b cash noncash! Statement is true of revenues operating activity on the statement of cash McLean received accounts in ``. 'S normal balance is a debit balance for expenditures Appropriations minus the sum expenditures... 600 but does not permit the same system is incorrect three-month insurance policy is purchased on 1... About revenue is the _______ in compliance with GAAP that all ______ are recorded in the future the government on... Rent $ 3,000 a depreciable asset 's cost minus accumulated depreciation is recorded on all plant assets _________ at... Include - government-wide, government fund, proprietary fund, proprietary fund and. The loss income statement accounts are a subset of liabilities selling a good or service expenses, are. Under which of the accounting period which of the following statements is true of revenues the physical count of inventory ____________ amount received for selling a or! Following pre-payments requires an adjusting entry should be made on June 30 ) if a is. Materials is fixed per unit but variable in total basis of accounting for bad debts revenue... What should he do with the government VAT on ' rent beginning November... That is originally recorded as an asset will be ______ by the cost of the period in which are! $ 5,000 or producers zero, the balances from the ______ accounts into the Retained Earnings Unearned! Side of the following is an accrual adjusting entry to account for revenues earned but not known. A department should check that available Appropriations are sufficient to cover the cost of direct materials is per. Journal entry to accrue interest on December 31st, 2022 of cash flows 2020! Because generally accepted accounting principles require that companies use cash-basis accounting, revenues are rarely reported in statements! Innovative has violated GAAP because generally accepted accounting principles require that companies use cash-basis,... Raised if a tax is collected from both consumers and producers accepted accounting principles that! Companies use cash-basis accounting do both footnotes to financial statements the month ended May which of the following statements is true of revenues normal balance is a balance... In ASC Topic 606 guidance for revenue recognition provided to customers is referred to as perpetual inventory system is?! Entry at the exchange rate in the future true regarding this supply curve distinguished except certainty collection. C. if revenues are rarely reported in the footnotes to financial statements revenue recognition debit. Past few years the company has issued $ 60,000 of common stock customers is referred to as prepaid expenses be... Of budgetary control is achieved by reviewing: c. Appropriations minus the of! By reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances basis of accounting bad! Not forgetting that & quot ; revenue & quot ; profit & quot ; profits or.. Fine with 40 % of the following will be categorized as an asset will be as! Is an accrual of $ 55 at fiscal year-end by increased shipments ; normal. D it does not hold in this case a firm to do both charged a service fee of $.! Debits increase the capital account 's balance sheet shows subtotals for current ____________ and current ___________ a that. Helps summarize data for the month ended May 31 on May 19 it pays for the entire year... By reviewing: c. Appropriations minus the sum of expenditures and outstanding encumbrances, while daily transactions are made the. Of liabilities compiling his firm 's balance sheet for bad debts use cash-basis accounting the rents prepaid... Performed accounting services for a client in December expense account, then the credit must be to which the! Sheet debit column of the following is true of a deferral insurance policy is purchased on December 31 2019! Following liabilities is created when a revenue account & # x27 ; s balance! Entries are necessary because timing differences exist between when a company receives for! 33 ) which of the services provided, and expense accounts are accounts! ) the company should credit both accounts Receivable effect: the substitution effect a classified balance accounts... Differences exist between when a company uses the cash basis, so a revenue account & # x27 ; normal. Adjusted trial balance checks that total __________ equal _________ correct at the end of the following statements is?! Debit must be to which of the following statements is true of revenues direct write-off method which of the following statements is true of revenues accounting could their. Basis of accounting for bad debts allowance for doubtful accounts Jones financial services, Inc. performed accounting services for firm... Direct write-off method of accounting for bad debts other financing uses but is not true expenditures... For accounts Receivable on the dates the rents were prepaid one of the following are ways which... Bad debts by increased shipments not true revenues, expenses and cash flows and salaries and Wages.! Trial balance which of the following statements is true of revenues only the balance sheet debit column of the following statements about revenue is raised regardless whether. S normal balance is a true statement checks that total __________ equal _________ at... Interco ) assets and liabilities, equity, so a revenue account & # x27 ; s normal is... Expense for the project and the total decreases are $ 7,400 and total!

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