Review the following statements regarding a petty cash fund used in a business. Which of the following statements is true regarding the Worker Adjustment and Retraining Notification (WARN) Act? Adjustments for accounts that affect expenses are handled in opposite ways when using the direct versus the indirect method. The beginning inventory of the current period Is the beginning inventory of the previous period. For financial statements prepared in accordance with generally accepted accounting principles, the accrual basis of accounting is required because of the matching principle. All of the following statements regarding vertical analysis are true except. Overview. L!J Read about this The income statement Is the first financial statement prepared after preparing the adjusted trial balance. 1. b. c.Adjusting entries are not posted to the ledger. Which of the following statements is true regarding the cumulative translation adjustment? e) None of the choices are listed Adjustments help to ensure the related accounts on the balance sheet and income statement are up to date and complete. Adjusting entries are not posted to the ledger. 2. The ending Inventory of the previous period is the ending Inventory of the current period. Which of the following statements regarding tip income is true? All of the following statements with respect to the IRS seizure and sale of a taxpayerâs property to satisfy the taxpayerâs tax bill are correct except: a seizure may not be made on any property if the estimated cost of the seizure and sale exceeds the fair market value of the property to be seized Select the one that is correct. 32) One purpose of performing analytical procedures in the planning phase of an audit is to assess the client's financial condition. a Most federal, state, and local government organizations are covered by this law. Correct answer: a Learning Objective 18.4 ~ explain the nature of an investment entity. The legal acquirer under AASB 3 and the accounting acquirer under AASB 10 do not have to be the same entity. To adjust the Inventory account balance from a debit balance of $35,000 to a debit balance of $40,000, the following adjusting entry will be needed: Let's also assume that the Purchases account sh⦠d.None of these statements are true. Which of the following statements is correct regarding the ACE adjustment? a. C. In a vertical analysis of an income statement, each item is stated as a percent of total expenses. d. The adjusting journal entry at the end of each month should include a debit to ⦠>>Decentralization often allows decisions to be made more rapidly, since not as many layers of management are needed for approval. Which of the following is an influence on a child's adjustment to divorce? Let's assume that at the end of the year a physical count of inventory is taken and it has an actual cost of $40,000. ~Your answer is correct! These are the amounts that were previously referred to as "above-the-line" deductions because they appeared on the first page of the tax returns that were in use in 2017 and earlier years. Adjusting entries are optional with accrual-basis accounting. b This Act requires employers to provide 10 days' advance written notice of either a plant closing or a mass layoff once the decision is made by management. This balance will be the only amount in the account Inventory until the end of the year. The entity identified under AASB 10 as the parent will be the acquirer under AASB 3. c. IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements. adjusts net income for the changes in balance sheet accounts to calculate the cash from operating activities C. b) All adjustments are made at the beginning of the accounting period. A. $35,913.06 $2,596.13 $1,298.06 $10,384.50 $34,615.00 2. Persistent poverty appears to be more damaging to children's self-esteem, peer relations, and conduct than does intermittent hardship. c) Adjustments will correctly allocate cash to revenue or expenses. B) Documentary evidence is more reliable when it is ⦠Which of the following statements is true regarding the sales comparison approach? 40. '-'Your answer is correct. The note is due in 90 days and has an interest rate of 7.5%. Indicate which of the following statements are true or false regarding the work sheet. Which of the following statements regarding decentralized organizations are correct? A check written against the ⦠The ACE adjustment can be either positive or negative. _____ The work sheet cannot be used as a basis for posting to ledgers. !J Reed about this The cashier of a fund will write checks for small payments like postage, supplies and deliveries. a.Adjusting entries are dated as of the first day of the new accounting period. You are already subscribed. ⦠Which of the following statements is true regarding the documents in ⦠What would be the amount required for the December 31, 2010 adjusting journal entry? Schedule 1: Adjustments to Income . d.None of these statements are true. Which of the following statements is correct? When operations are discontinued, a company has multiple line items to report on its financial statements. Any tips you reported to your employer are to be included in the wages in box 1 (Wages, tips, other compensation) of your Form W-2. Which of the following statements is correct regarding reporting comprehensive income? Feedback: Correct. 13.Which of the following statements is true regarding adjusting entries? Explain how the assessment of a client's financial condition can affect the auditor's decisions concerning evidence accumulation in later phases of the audit. ... Certain subsequent events may provide evidence about conditions at the date of the balance sheet and require adjustment of the statements in accordance with the applicable financial reporting framework. B. The full amount was credited to the liability account Unearned Legal Fees. 13. A Accumulated other comprehensive income is reported in the equity section of the balance sheet. Which of the following statements is correct regarding adjustments? Determine which of the following statements is correct regarding the relationship of ending inventory and beginning inventory. c.Adjusting entries are not posted to the ledger. a) Adjustments are made to the subject property to reflect differences among the comparable sales chosen for comparison b) Adjustments are made to the sales prices of the comparable properties to make them representative of the subject propertyâs characteristics c) When the adjustments are complete, the ⦠B. Multiple Choice C) A partner's basis may never be reduced below zero C ) Relief of partnership debt decreases a partner's tax basis ( Partnership fines and penalties do not affect a partner's basis. Adjustments are needed to ensure that the accounting system includes all of the revenues and expenses of the period. A. Which of the following statements is correct regarding the effect poverty can have on children? Select one: A: Changes in the cumulative translation adjustment are reported in the income statement at each statement date. B: The cumulative translation adjustment account affects the amount of gain or loss reported upon the sale of a foreign subsidiary. Financial statements are written records that convey the business activities and the financial performance of a company. l! The IFRS grants limited exemptions from the general requirement to comply with each IFRS effective at the end of its first IFRS reporting period. Which of the following statements regarding a partner's basis adjustments is false? 457,015 Subscribers. a. >>All large organizations are decentralized to some extent. Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In preparing financial statements. (Points : 7.5) Accrued revenues have not been earned and unearned revenues have been earned. A. A change in accounting estimate is an adjustment of the carrying amount of an asset or liability, or related expense, resulting from reassessing the expected future benefits and obligations associated with that asset or liability. Free Adjusting Entries Cheat Sheet. a) Adjustments are optional. Which of the following statements is correct regarding different LCOE calculation methods? Corresponds to CLO 4(a) Which of the following statements is correct regarding accrued revenues and unearned revenues, before adjusting entries have been made? A positive AMT adjustment occurs if the ACE amount exceeds the unadjusted AMTI. 32. A merchandising company will have an adjusting entry for accrued expenses. b. Adjustments for accounts that affect revenues are handled in opposite ways when using the direct versus the indirect method. (Check all that apply.) Your adjustments to income are entered in Part II of Schedule 1. Disclosure on Income Statements . Which of the following statements is correct regarding the adjusting entries for a merchandiser versus a servic A service company will have an adjusting entry for accrued expenses. C A separate statement of comprehensive income is required. V Your answer is correct! d) Adjustments update assets, liabilities and owner's equity. The following shows how to reflect the adjusting journal entries. If you are an indirectly tipped employee (for example, a busser or bartender) you are not required to report tips to your employer. None of these statements are true. On January 1, the Seigel Law Firm received a $12,000 cash retainer for legal services to be rendered ratably over the next 6 months. Which of the following statements is true regarding adjusting entries for this liability account? Which of the following statements is correct regarding written representations from management? a. Which of the following statements is nota correct statement regarding audit evidence? 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