Exam 4: Completing the Accounting Cycle

Which of the following statements is TRUE about the worksheet?

Salaries payable is a permanent account.

Which of the following statements MOST precisely describes a classified balance sheet?

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 After the closing entries,what will the final balance in Capital be?

The ________ is the time span during which cash is paid for goods and services,which are then sold to customers from whom the business collects cash.

The last step in the closing process is to credit the Drawing account and debit the Capital account.

Revenues total $10,200.Expenses total $7,300.Withdrawals total $2,600. -What is the balance in the Income summary account prior to closing Net income or loss to the Capital account?

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 Drawing.

The following is the adjusted trial balance for Tuttle Photography. Account Debit Credit Cash \ 1,700 Accounts receivable 8,500 Supplies 100 Equipment 7,500 Accumulated \ 2,000 depreciation Accounts payable 1,200 Salary payable 800 Unearned revenue 600 Capital 3,400 Drawing 2,300 Service revenue 40,000 Salary expense 24,000 Supplies expense 2,300 Depreciation expense 1,600 \ 48,000 \4 8,000 Using the information from the worksheet above,prepare the closing entry for the Drawing account.

The adjusting entry for depreciation would include a:

Service revenue is a permanent account.

Please refer to the following information and compute the current ratio: Debit Credit Cash \ 4,500 Accounts receivable 1,200 Prepaid rent 700 Land 20,000 Equipment 4,000 Accumulated depreciation \ 800 Accounts payable 2,900 Salary payable 600 Notes payable-long term 9,000

Cash is a temporary account.

To what account is the balance in the Income summary account closed?

Beginning balance in Capital is $80,000.Revenues are $60,000.Expenses are $75,000.No withdrawals were taken.The ending balance in Capital is $95,000.

Which of the following accounts will be closed by debiting the Income summary account?

Please refer to the worksheet below.Enter the following adjusting entry into the worksheet: At year-end,the company has earned $2,000 of service revenue from a client,but has not yet completed the job,or received a payment.

Which debt ratio would indicate the BEST overall ability of an organization to pay its debts?

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Asset and liability accounts are closed to the Income summary account.