revenue may be defined as : a- increase in assets from all sources b- the amount of capital invested by the owners of a business c- the reduction of liabilities previously owned d- the increase in equity other than contributions from equity participants

revenue may be defined as : a- increase in assets from all sources b- the amount of capital invested by the owners of a business c- the reduction of liabilities previously owned d- the increase in equity other than contributions from equity participants

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 16MC: Retained earnings is accurately described by all except which of the following statements? A....

See similar textbooks

Related questions

Q: Which of the following statements is true? O A. The financial information of an enterprise is…

A: The financial information of an entity is key in evaluating how the entity is performing as a whole…

Q: In which of the following financial statements will "changes in working capital" be reported? O A.…

A: Working capital is the amount of capital available with the firm which is used for day to day…

Q: Which of the following accounting concepts considers the investment made by the owner in the…

A: Accounting Principles are the rules and guidelines to be followed by a business while preparing and…

Q: measuring the performance and financial status of an enterprise are provided below. Assets…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Can a business transaction cause one asset to increase with-out affecting any other asset,…

Q: Revenues may be defined as: Select one: Increases in assets from all sources. The amount of…

A: Revenue: Revenues are defined as an increase in the fund financial sources rather than from…

Q: Profit and Loss Account shows the: Total Capital Employed Profit and Loss through sale of assets…

A: Introduction: The financial statements are a record of financial activities to assess a…

Q: Revenues are increases in equity from a company's sales of products and services to customers. 2.…

A: Net Income = Total Revenue - Total Expenses

Q: 0. The following stat To meet the objective, financial statements should provide information about…

A: The answer is POINT 'B'

Q: The equation which shows a company's resources equal claims to these resources is

A: Accounting Equation: accounting equation is the basis of accounting which is Total Asset = Total…

Q: . Revenues area. decreases in liabilities resulting from paying off loans.b. increases in retained…

A: Definition of Revenue: Earnings of a business is called revenue.

Q: e Current Liabilities Compute for the Non-current

A: The current asset as,

Q: The resources owned by a business are called:A. assets.B. liabilities.C. the accounting equation.D.…

A: To run a business many type of resources are needed. These can be in form of cash or in form of…

Q: Which of the following statements regarding equity is not true? It is defined independently of…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.

Q: It represents the cash or other assets withdrawn from the business by the owner for the personal…

A: Dividends are distribution of profits of a company to its shareholders. Hence, option C is wrong.

Q: The ownership claim on company’s assets A. Equity B.withdrawal C. Revenue. D. Expense

A: The Ownership claim on company's assets are called Equity. Equity Contains the Capital and retained…

Q: Which of the following statements best defines equity (capital) of a business? A Equity represents…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.

Q: The _____ describes a company’s financial position – by the types and amounts of assets,…

A: Every Company prepares a statement of affairs at the end of the year to know the financial position.…

Q: An increase in economic benefits or increase in assets or decrease in liability resulting in…

A: An increase in assets will increase the operational efficiency of the company. A decrease in…

Q: Which of the following statements regarding owner's capital is not valid?

A: Capital of business is the money available for our day to day financial transaction. The main four…

Q: Which of the following is a group of accounts that shows the rights of the owner or partners of the…

A: In order to fulfill the financial requirements, the business entity issue the equity shares. The…

Q: Liabilities Are things of value used by the business in its operation. O a. b. Are future economic…

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: For each item below, indicate to which category of elements of financial statements it belongs. a.…

A: Particulars Category a. Retained earnings. Equity b. Sales. Revenue c. Additional…

Q: The......of a business is the amount of income A-Revenue B-venture C-assest D-fund

A: A business is described as an organization or enterprising entity engaged in commercial,…

Q: Distributions of cash or other assets by a business to its stockholders are called: A) Dividends. B)…

A: Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends…

Q: Which one of the following can the accounting equation can be rewritten as? A Assets + profit –…

A: Given the following options: Assets + profit – drawings – liabilities = closing capital Assets –…

Q: Resources of a company are referred to asa. Liabilities. b. Stockholders’ equity. c. Dividends. d.…

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: tement of changes in owners equity summarizes the effects on the capital account of the various…

A: Solution: The statement of changes in owners equity represents the changes in balance of equity from…

Q: Part 2 Accounting Terminology. For each of the following statements, indicate the term described. a.…

A: Since you have posted question with multiple sub-parts, we will do the first three sub-parts for…

Q: The owners' claims to the assets of the business are called ________. A.equity B.expenses…

A: As per the accounting equation, Assets = Liabilities + Equity and such relation always holds true.

Q: Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus…

A: Income statement is the financial statement that helps the users to know the profitability position…

Q: What is the owner’s right to the assets (claims to the assets) of the business called? Group of…

A: Solution: As per basic accounting equation: Assets = Liabilities + Owner's equity Therefore Lenders…

Q: select the item that best completes each of the decriptions below A(n)____ is a record of increases…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Dividends

A: Option "a" is wrong because the amount , the owner has taken out of business for personal use is…

Q: The financial statement that shows the profitability of a business entity is known as: Group of…

A: Financial statements are prepared to show the financial position, financial performance and cash…

Q: 1. Which of the following statements is correct? A. Assets on the balance sheet include retained…

A: Balance sheet equation is Total assets = Total liabilities + owners equity

Q: hich financial statement is associated with each of the descriptions below? a. Operating…

A: The financial statements of the business include the income statement, cash flow statement,…

Q: What an organization generates from activities, other than its primary business activity, will be…

A: Income statement is a financial statement which shows profit earned by a entity. Income statement…

Q: If a business earns a Net Income it means: O Capital > Revenue O Revenue > Expenses Drawings >…

A: Net income As per formula Net income = Revenue-Expenses If expenses are less than revenue than net…

Q: What information is made available about the business in the following financial statements: a.…

A: A compilation of summaries of a company's monetary results, financial position, and cash flows is…

Q: _______ 1. Financial assets at amortized cost shall be measured at fair value through profit or…

A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Briefly describe a business transaction that would cause Assets to Increase and Liabilities to…

A: We can take a case that if we purchase any asset say Furniture on credit of 10000, then in that case…

Q: ains are: Select one: a. Inflows from selling a product or service to a customer. b. Increases in…

A: Gains means some profit earned from some extra ordinary business and not from ordinary business.

Q: As per the accounting equation, equity can be represented as __________________. Excess of assets…

A: Accounting is the detailed process of book keeping. Under the first step of accounting, all…

Q: The increases in stockholders' equity attributable to selling services or products to customers are…

A: Stockholder’s equity is the money which is invested by the shareholders’ who are the owners of the…

Q: The gross increase in stockholder’s equity attributable to business activities are called: a)…

A: Stock holders equity = equity share capital + Reserves and surplus

Question

revenue may be defined as :

a- increase in assets from all sources

b- the amount of capital invested by the owners of a business

c- the reduction of liabilities previously owned

d- the increase in equity other than contributions from equity participants

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnover
Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assets
Retained earnings is accurately described by all except which of the following statements? A. Retained earnings is the primary component of a companys earned capital. B. Dividends declared are added to retained earnings. C. Net income is added to retained earnings. D. Net losses are accumulated in the retained earnings account.
Assets = Liability+ Capital where 'assets' are resources of the business; 'liabilities' are external claims against these resources; ' capital' is an internal or residual claim against these resources. Discuss the accounting equation considering the statement provided.
A) Comment on any significant changes in each company in the composition of current assets and current liabilities. Explain. b) Which assets in each company have the most significant investment? Why? c) Are the companies financed primarily with debt or equity? Why?
The profit that is distributed to the shareholders is called as a. Investment. b. Retained earnings c. Expense. d. Dividends
Working Capital. Identify the working capital accounts related to, (d) income tax expense. For each account, indicate whether an increase in the working capital asset or liability would be an addition or subtraction when reconciling from net income to cash flows from operations.
Networking capital refers to the A) firms investment in total assets B) firms' investment in current assets C) difference between the firm's current assets and its current liabilities D) Difference between the firms total assets and its total liabilities
The net assets approach of computing for the net income requires this item to be added to the ending capital. a. Beginning capital b. Additional investments c. Withdrawals d. Increase in Liabilities
Under capitalization of a business entity causes a. A situation when long term assets are financed form short term receivables b. A situation when current assets are financed from long term capital c. A situation when long term assets are financed from short term financial resources d. A situation when the respective business entity is spending more capital than it's able to hain
Which of the following is classified as a financing activity? Receipt of dividend income Receipt of interest on loan receivable Payment of dividends Investment in another company’s stock
How can the retained earnings indicate the number of assets that the company has financed?