Which of the following statements is false? 1. An income statement reports revenues earned less expenses incurred. 2 An unadjusted trial balance is a list of accounts and balances after adjusting entries have been recorded and posted to the ledger 3. Interim financial reports can be based on a time period shorter than on year, such as a one-month or three-month accounting periods.
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Which of the following statements is false?
1. An income statement reports revenues earned less expenses incurred.
2 An unadjusted
3. Interim financial reports can be based on a time period shorter than on year, such as a one-month or three-month accounting periods.
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- Allowance for Uncollectible Accounts is a contra asset account, which means that its normal balance is a credit. However, it is possible for the account to have a debit balance before year-end adjustments are recorded. Explain how this could happen. How does an accountant calculate the year-end adjustment for Allowance for Uncollectible Accounts with a debit balance before year-end adjustments recorded? Please explain both answers in good detail answerBusinesses using the allowance method for the recognition of uncollectible accounts expense commonly experience four accounting events: a. Recognition of uncollectible accounts expense through a year-end adjusting entry. b. Write-off of uncollectible accounts. c. Recognition of revenue on account. d. Collection of cash from accounts receivable. Required Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shown here. Use the following coding scheme to record your answers: increase is +, decrease is –, leave the cell blank for not affected. In the cash flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is entered as an example. Effect of Events on the Financial Statements Balance Sheet Income Statement Stockholders' Net Event Assets Liabilities Revenue Expense Cash Flow Equity Income 1. %3D + 2. 3. 4. +A. Discuss briefly how transactions are accounted for events after the reporting period.B. How do you make adjustments for a non-counter balancing error and does it affect the present financial statements?C. In case the books of accounts are not yet closed what financial statements account/accounts must be adjusted? Why?
- 9. PostingA. Accumulates the effects of ledger entries and transfers them to the general journal.B. Is done only for income statement activity because activity related to the statement of financial position does not require postingC. Is done once every year.D. Transfers journal entries to the ledger accounts.What is the major difference between the unadjusted trial balance and the adjusted trial balance? The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts. Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processing even if it is not in balance. The adjusted trial balance will be used to record the adjustments for the period. The adjusted trial balance will show the net income (loss) as an additional account.1. Prepare an income statement for the month ended July 31, 20Y2. Refer to the lists of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If there is a net loss, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the income statement.
- Choose from the following list to best complete the statements below. a. Temporary b. Permanent c. One or more d. One e. Zero balances f. Income Summary 1) _accounts generally consist of all balance sheet accounts, and these accounts are not closed. 2) Permanent accounts report on activities related to future accounting period(s), and they carry their ending balances into the next period. 3) Temporary accounts accumulate data related to accounting period(s). 4) accounts include all income statement accounts, the withdrawals account, and the Income Summary account. Choose from the following list to best complete the statements below. a. Temporary b. Permanent c. One or more d. One e. Zero balances f. Income Summary 1. accounts generally consist of all balance sheet accounts, and these accounts are not closed. 2. Permanent accounts report on activities related to future accounting period(s), and they carry their ending balances into the next period. 3. Temporary accounts accumulate data…At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years: Reported net income was 27,000 in 2018 and 35,000 in 2019. The allowance for doubtful accounts had a zero balance at the beginning of 2018. No accounts were written off during 2018 or 2019. Ignore income taxes. Required: 1. What is the correct net income for 2018 and 2019? 2. Prepare the adjusting journal entry in 2020 to correct the errors.Use T-Account to show and calculate: a) Balance for each account as WXY recorded at year end Dec. 31, 2020. b) Identify the incorrect JE c) Show Corrected Balance for each account, plus Gross Profit. d) Determine the overstatements and/or understatements that would result from the error, include Gross Profit.
- The collection of customer’s account is credited to accounts payable. What is the effect of the error in the net income of the current period and in subsequent period? Group of answer choices A. Cannot be determined based on the given information B. Understated C. Overstated D. No effectUsing the allowance method, the effect on the current year’s financial statements of writing off an account receivable generally is to a. Decrease total assets.b. Decrease net income.c. Both a. and b.d. Neither a. nor b.Which of the follwing in correct? a. Balance sheet accounts are considered temporary accounts and these accounts have balances that are carried forward from year to year. b. Balance sheet accounts are considered permanent accounts and these accounts have balances that are carried forward from year to year. c. Balance sheet accounts are considered permanent accounts and these accounts have balances that are closed each year. d. Profit and Loss accounts are considered permanent accounts and these accounts have balances that are closed each year.