Please answer all. Thankyou TRUE OR FALSE: Read each sentence carefully and determine whether the statementis True or False. Write your answers in the space provided before the number.1. The SCl is a picture of the results of operations of the company as of the cut-off-date.2. The major elements of the SCl are income and expenses.3. Cost of sales is computed as cost of goods available for sale less endinginventory.4. Expense recognition strictly requires the matching of expenses againstrevenue.5. Goods returned by customers are immediately deducted to the SalesRevenue account.6. Temporary accounts are also called real accounts.7. Cost of Sales is a major expense of a merchandiser which represents thecost of buying the merchandise which were sold to obtain a revenue.8. Losses are the income from non-business-related transactions.9. Revenue result in increase in equity and therefore has a credit normalbalance.10. Revenue result in increase ih equity and therefore has a credit normalbalance.

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: TRUE OR FALSE: Read each sentence…

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expenses
Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between selling expenses and general and administrative expenses when a multiple-step income statement is prepared. Identify each of the following items as a selling expense (S) or general and administrative expense (G$A). ______ 1. Advertising expense ______ 2. Depreciation expenseâ€”store furniture and fixtures ______ 3. Office rent expense ______ 4. Office salaries expense ______ 5. Store rent expense ______ 6. Store salaries expense ______ 7. Insurance expense ______ 8. Supplies expense ______ 9. Utilities expense
Costs and Expenses The following costs are incurred by a retailer: Display fixtures in a retail store Advertising Merchandise for sale Incorporation (i.e., legal costs, stock issue costs) Cost of a franchise Office supplies Wages and salaries Computer software Computer hardware Required For each cost, explain whether all of the cost or only a portion of the cost would appear as an expense on the income statement for the period in which the cost was incurred. If not all of the cost would appear on the income statement for that period, explain why not.
The adjusting entry for unearned revenue pertains to which of the following types of businesses? a. Service b. Merchandising c. Manufacturing d. Service and merchandising e. All of the above
Determine the effect of the following errors on a companys total revenue, total expenses, and net income. Indicate the effect by writing O for Overstated (too much), U for Understated (too little), or NA for Not Affected.
Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
At what point does revenue recognition occur? A. When the purchase order is received B. When the seller receives the money for the job C. When the seller has met performance D. When the purchaser makes payment
Which of the following accounts would be reported under operating expenses on a multi-step income statement? A. sales B. advertising expense C. sales returns and allowances D. interest expense
A simple income statement ________. A. combines all revenues into one category B. does not combine all expenses into one category C. separates cost of goods sold from operating expenses D. separates revenues into several categories
n: In a sheet of paper, write TRUE if the statement is correct and FALSE if the statement is incorrect. 1. The revenue earned by a service business for rendering services for a fee is commonly referred to as Service Income or Service Revenue. 2. A Statement of Comprehensive Income may be presented using a “multistep statement” presentation only. 3. Revenue includes both income and gains. 4. If expenses are greater than income, the difference is net loss. 5. The revenue earned by the merchandising business from its sales of goods is commonly referred to as Sales. 6. Income increases economic benefits during the period in the form of inflows of cash from rendering services. 7. The statement of Comprehensive Income shows information on an entity’s financial performance during the period. 8. A Statement of Comprehensive Income that shows expenses by its function is referred to as prepared using a single-step approach. 9. Expenses encompass both…
1. What is a Statement of Comprehensive Income? 2. Why are the accounts found under the SCI are called temporary accounts? 3. What are the two forms of SCI? Differentiate one from the other. 4. What is the difference between the SCI of a service entity from a merchandising entity? 5. What is the formula in computing Net Income (Loss) for Service Entities? 6. What is the formula in computing Net Sales? 7. What is the formula in computing Cost of Goods Sold?

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