Exam 4: Completing the Accounting Cycle

Beginning balance in Capital is $10,000.Revenues are $200,000.Expenses are $120,000.Withdrawals are $4,000.The ending balance in Capital is $86,000.

Which of the following statements is TRUE concerning the worksheet?

Please refer to the following data: Debit Credit Cash \ 16,000 Accounts receivable 2,800 Prepaid insurance 800 Land 40,000 Building 50,000 Accumulated depreciation \ 32,000 Accounts payable 2,200 Wages payable 4,000 Notes payable-short term 2,300 Using the "rule of thumb" guidelines,what conclusion could you draw?

The post-closing trial balance is an optional step.

Which of the following is the LAST step of preparing the worksheet?

Service revenue is a temporary account.

Capital is a temporary account.

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer)?

The following is the adjusted trial balance for Tuttle Photography. Account Debit Credit Cash \ 15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation \ 12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 R. Tuttle, capital 21,290 R. Tuttle, drawing 23,000 Service revenue Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Innsurance expense 14,000 Utilities expense 20,900 \ 469,790 \ 469,790 Using the information from the worksheet above,prepare the closing entry for Expenses.

The post-closing trial balance shows the net income for the period just ended.

Which of the following statements is an accurate interpretation of a debt ratio of .60?

Please refer to the worksheet below.Enter the following adjusting entry into the worksheet: At year-end,the company owes $180 of salaries to its staff that it has not paid yet.

Reversing entries are required by GAAP.

The Drawing account is copied to the income statement columns on the worksheet.

Please refer to the following information and calculate the debt ratio.(Round to two decimals.) Debit Credit Cash \ 6,000 Accounts receivable 2,000 Prepaid insurance 800 Land 40,000 Building 50,000 Accumulated depreciation \ 32,000 Accounts payable 9,400 Wages payable 4,000 Notes payable - short term 3,200

Assets are listed in order of ________ on the balance sheet.

In which of the columns of the worksheet would Net income be found?

Depreciation expense is a temporary account.

A company has $45,600 in Current assets; $111,320 in Total assets; $67,500 in Current liabilities and $188,400 in Total liabilities.The company has a current ratio of:

In which of the columns of the worksheet would a net loss be found?