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 $90,000.

Please refer to the following balance sheet: How much is the current ratio? (Round to two decimal places.)

Which of the following statements is TRUE concerning the worksheet?

The following is the adjusted trial balance from the worksheet for Tuttle Photography. Tuttle Photography Worksheet For the Year Ended December 31,2013 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 provided in the worksheet above,prepare an income statement for Tuttle Photography.

The debt ratio measures a company's overall ability to pay its employees.

Which of the following accounts would appear in the balance sheet credit column?

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 Income summary account.

Reversing entries are posted on the first day of the month.

The following contains information from the records of the Wellborn Engineers and Architects. Wellborn Engineers and Architects Selected Financial Information December 31,2013 Current assets \ 74,000 Current liabilities 44,000 Long-term assets 95,000 Long-term liabilities 60,000 Total revenues 50,000 Total expenses 30,000 What is the current ratio?

Prepaid rent in the worksheet's trial balance column is $4,000.Prepaid rent in the balance sheet column is $2,000.Which of the following entries would have caused this difference?

Which of the following accounts would appear in the income statement credit column?

A debt due to be paid within one year (or operating cycle,if longer)is a current liability.

What is the result if the amount of net income for the year is less than the amount of the withdrawals?

The current ratio is a measure of a company's:

The formula for computing a current ratio is:

Which of the following does NOT appear on the worksheet?

What is TRUE if the income statement credit column exceeds the income statement debit column on a worksheet?

Reversing entries are used for convenience and to save time.

Prepaid rent is usually a long-term asset.

Which of the following assets is the MOST liquid?