Question

What is the Accounting Term to Describe the following type of Accounting Transaction ? Cash is...

What is the Accounting Term to Describe the following type of Accounting Transaction ? Cash is exchanged before any Good or Services is Used or Provided.

Group of answer choices

*Deferral

*Cash Basis

*Revenue

*Expense

*Prepaid

*Accrual

*Depreciation

Operating Income Less Other Income and Expenses will Equal ?

Cost of Good Sold

Gross Profit

Retained Earnings

Income Before Income Taxes

Net Income

Homework Answers

Answer #1
1
Deferral is used to describe Cash is exchanged before any Good or Services is Used or Provided.
Examples of deferral include Unearned Revenue, Prepaid expenses.
Deferral is correct option
Note: Prepaid also denotes cash paid or received in advance before any Good or Services is Used or Provided.
2
Operating Income Less Other Income and Expenses will Equal Income Before Income Taxes
Income Before Income Taxes is correct option
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2. The Larson Company prepared the following income statement using the cash basis of accounting: THE...
2. The Larson Company prepared the following income statement using the cash basis of accounting: THE LARSON COMPANY Income Statement, Cash Basis Year Ended December 31, 2017 Service revenue $460,000 Expenses 220,000 Profit $240,000 Additional data: 1. Service revenue includes $40,000 collected from a customer for whom services were provided in 2016, and who was billed in 2016. 2. There are an additional $15,000 of expenses that were incurred on account, for which payment will not be made until 2018....
DEF Industries, a private company, is considering a change to the cash basis of accounting from...
DEF Industries, a private company, is considering a change to the cash basis of accounting from the accrual basis of accounting. This year, DEF reported $140,000 of total accrual basis expenses on the income statement. At the beginning of the year, DEF had of $21,000 of accrued expenses and $8,000 of prepaid expenses. At the end of the year, DEF had $18,000 of accrued expenses and $4,000 of prepaid expenses. DEF also reported $12,000 of depreciation expense for the year,...
TaiShar Industries, a private company, is considering a change to the cash basis of accounting from...
TaiShar Industries, a private company, is considering a change to the cash basis of accounting from the accrual basis of accounting. This year, TaiShar reported $35,000 of total accrual basis expenses on the income statement. At the beginning of the year, TaiShar had of $15,000 of accrued expenses and $2,000 of prepaid expenses. At the end of the year, TaiShar had $24,000 of accrued expenses and $6,000 of prepaid expenses. TaiShar also reported $7,000 of depreciation expense for the year,...
Use the accrual basis of accounting for the following chart of accounts: Balance Sheet Accounts Cash...
Use the accrual basis of accounting for the following chart of accounts: Balance Sheet Accounts Cash Petty cash Accounts receivable Prepaids Equipment Accumulated depreciation Accounts payable Accrued liabilities Income Statement Accounts Revenue Insurance expense Hydro expense Depreciation expense For the transactions listed below indicate the account that should be debited and credited: Description Debit Account Credit Account Receive invoice to pre-pay insurance premium for 1 year Prepaids Cash Amortise 1-month of above prepaid insurance Insurance expense Prepaids Issue invoice to...
Dr. Jones maintains her books on a cash basis. At year end, her CPA converts them...
Dr. Jones maintains her books on a cash basis. At year end, her CPA converts them to an accrual basis. Dr. Jones provides the following information regarding her cash basis income for 2019: Cash receipts $400,000 Cash payments $300,000 Balance 12/31/18 Balance 12/31/19 Other information: Accounts receivable 105,000 85,000 Unearned revenue 35,000 10,000 Accrued expenses 220,000 199,000 Prepaid expenses 22,000 27,000 Accumulated depreciation 100,000 130,000 No plant assets were sold during 2019. Calculate accrual basis revenue, accrual basis expense and...
The cash flows used to analyze Mergers & Acquisitions: Group of answer choices Are before tax....
The cash flows used to analyze Mergers & Acquisitions: Group of answer choices Are before tax. Are the same as those used in regular capital budgeting analysis. Exclude interest and depreciation on a before-tax basis; and then adds back depreciation and subtracts retained earnings. Generally do not account for revenue and expenses. Both C and D.
QUESTION 1 Co. XYZ Balance Sheet Assets: Cash and marketable securities                              &nbs
QUESTION 1 Co. XYZ Balance Sheet Assets: Cash and marketable securities                                $300,000 Accounts receivable                                                 1,125,000 Inventories                                                               1,837,500 Prepaid expenses                                                          24,000 Total current assets                                                $3,286,500 Fixed assets                                                              2,700,000 Less: accumulated depreciation                               1,087,500 Net fixed assets                                                      $1,612,500 Total assets                                                             $4,899,000 Liabilities: Accounts payable                                                      $240,000 Notes payable                                                              825,000 Accrued taxes                                                                42,000 Total current liabilities                                           $1,107,000 Long-term debt                                                            975,000 Owner’s equity                                                         2,817,000 Total liabilities and owner’s equity                        $4,899,000 Co. XYZ Income Statement Net sales (all credit)                                                $6,375,000 Less: Cost of goods sold                                           4,312,500 Selling and administrative expense                           1,387,500 Depreciation expense                                                  135,000 Interest expense                                                          127,000 Earnings before taxes                                               $ 412,500 Income taxes                                                                225,000 Net income                                                                $ 188,000 Common stock...
Exercise 218 a-b Hal Corp. prepared the following income statement using the cash basis of accounting:...
Exercise 218 a-b Hal Corp. prepared the following income statement using the cash basis of accounting: HAL CORP. Income Statement, Cash Basis For the Year Ended December 31, 2020 Service revenue (does not include $25,000 of services rendered on account       because the collection will not be until 2021) $370,000 Expenses (does not include $15,000 of expenses on account because       payment will not be made until 2021) 220,000 Net income $150,000 Additional data: 1. Depreciation on a company automobile for the...
QS 16-26B Direct: Computing operating cash outflows LO P5 CRUZ, INC. Comparative Balance Sheets December 31,...
QS 16-26B Direct: Computing operating cash outflows LO P5 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 62,700 $ 15,700 Accounts receivable, net 27,000 33,300 Inventory 56,600 62,500 Prepaid expenses 3,500 2,900 Total current assets 149,800 114,400 Furniture 70,500 82,200 Accum. depreciation—Furniture (10,900 ) (6,200 ) Total assets $ 209,400 $ 190,400 Liabilities and Equity Accounts payable $ 9,900 $ 14,000 Wages payable 5,900 3,300 Income taxes payable 1,000 1,800 Total current liabilities 16,800 19,100...
Problem 5-4A Wolford Department Store is located in midtown Metropolis. During the past several years, net...
Problem 5-4A Wolford Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance. Accounts Payable $ 34,840 Accounts Receivable 22,360 Accumulated Depreciation—Equipment 88,400 Cash 10,400 Common Stock 45,500 Cost of Goods Sold 798,590 Freight-Out 8,060 Equipment 204,100 Depreciation Expense 17,550 Dividends...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT