Question 1

Please refer to the partially completed worksheet below:   How much was the Net income?

Accepted Answer

A)  $42,000 
B)  $13,600 
C)  $22,020 
D)  $28,400 
A)  $42,000 
B)  $13,600 
C)  $22,020 
D)  $28,400

Question 2

Accounts receivable is a permanent account.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of the depreciation adjustment is to:

Accepted Answer

A)  spread the cost invested in an asset over its useful life. 
B)  show the current market value of the asset. 
C)  set up a reserve fund for purchasing a new asset. 
D)  expense the full amount of the asset in the year purchased. 
A)  spread the cost invested in an asset over its useful life. 
B)  show the current market value of the asset. 
C)  set up a reserve fund for purchasing a new asset. 
D)  expense the full amount of the asset in the year purchased.

Question 4

Which of the following statements is an accurate interpretation of the current ratio?

Accepted Answer

A)  A current ratio of 1.5 or higher is considered a high-risk ratio. 
B)  A current ratio below 1.00 is considered a good, safe ratio. 
C)  A current ratio of 2.0 indicates very strong ability to pay current liabilities. 
D)  A current ratio of 0.60 or lower is a good, safe ratio. 
A)  A current ratio of 1.5 or higher is considered a high-risk ratio. 
B)  A current ratio below 1.00 is considered a good, safe ratio. 
C)  A current ratio of 2.0 indicates very strong ability to pay current liabilities. 
D)  A current ratio of 0.60 or lower is a good, safe ratio.

Question 5

Please refer to the worksheet below.Please complete the worksheet,including the balancing amounts in the last row.

Accepted Answer

This question is no

Question 6

Which of the following is TRUE if the income statement debit column exceeds the income statement credit column on a worksheet?

Accepted Answer

A)  The company has a net loss. 
B)  The capital account increased during the period. 
C)  The company has net income. 
D)  Liabilities are greater than assets. 
A)  The company has a net loss. 
B)  The capital account increased during the period. 
C)  The company has net income. 
D)  Liabilities are greater than assets.

Question 7

The definition of liquidity is how:

Accepted Answer

A)  easily an asset may be sold. 
B)  long an asset can be used. 
C)  easily an asset can be exchanged for another asset. 
D)  short an operating cycle is. 
A)  easily an asset may be sold. 
B)  long an asset can be used. 
C)  easily an asset can be exchanged for another asset. 
D)  short an operating cycle is.

Question 8

A balance sheet that has the assets listed above the liabilities and equity sections is a(n):

Accepted Answer

A)  report form balance sheet. 
B)  classified form balance sheet. 
C)  account form balance sheet. 
D)  audited form balance sheet. 
A)  report form balance sheet. 
B)  classified form balance sheet. 
C)  account form balance sheet. 
D)  audited form balance sheet.

Question 9

Which of the following accounts does NOT close at the end of the period?

Accepted Answer

A)  Accumulated depreciation 
B)  Depreciation expense 
C)  Withdrawals 
D)  Sales revenues 
A)  Accumulated depreciation 
B)  Depreciation expense 
C)  Withdrawals 
D)  Sales revenues

Question 10

Better Advice,a service company,uses reversing entries.On March 31,they posted the following adjusting entry to accrue utility expenses: $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts payable } & & 650 \
\hline
\end{array}$$ Which of the following represents the proper reversing entry to be posted on April 1?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts payable } & & 650 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts receivable } & & 650 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Accounts payable } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts payable } & & 650 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 650 & \
\hline \text { Utility expense } & & 650 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Utility expense } & 650 & \
\hline \text { Accounts receivable } & & 650 \
\hline
\end{array}$$

Question 11

As part of the closing process,revenues and expenses are closed to a temporary account called Net income (loss).

Accepted Answer

A) True 
 B)False

Question 12

Only permanent accounts appear on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 13

Under which of the following categories would Inventory appear?

Accepted Answer

A)  Current assets 
B)  Current liabilities 
C)  Long-term assets 
D)  Long-term liabilities 
A)  Current assets 
B)  Current liabilities 
C)  Long-term assets 
D)  Long-term liabilities

Question 14

Please refer to the worksheet below.Enter the following adjusting entry into the worksheet:
At year-end,the company has only $20 of supplies left.

Accepted Answer

This question is no

Question 15

Where does Net income appear on a worksheet?

Accepted Answer

A)  Net income appears only in the income statement debit column. 
B)  Net income appears in the balance sheet credit column and in the income statement debit column. 
C)  Net income appears in the income statement credit column and in the balance sheet debit column. 
D)  Net income appears only in the balance sheet credit column. 
A)  Net income appears only in the income statement debit column. 
B)  Net income appears in the balance sheet credit column and in the income statement debit column. 
C)  Net income appears in the income statement credit column and in the balance sheet debit column. 
D)  Net income appears only in the balance sheet credit column.

Question 16

Which of the following would be considered the POOREST current ratio?

Accepted Answer

A)  0.5 
B)  1.1 
C)  1.3 
D)  1.8 
A)  0.5 
B)  1.1 
C)  1.3 
D)  1.8

Question 17

Under which of the following categories would Buildings appear?

Accepted Answer

A)  Current assets 
B)  Long-term liabilities 
C)  Long-term assets 
D)  Current liabilities 
A)  Current assets 
B)  Long-term liabilities 
C)  Long-term assets 
D)  Current liabilities

Question 18

Please refer to the worksheet below:   Post adjustments needed according to the information below, and complete 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.
?	At year-end, the company owes $180 of salaries to its staff that it has not paid yet.
?	At year-end, the company has only $20 of supplies left.
?	At year-end, the company records $240 of depreciation expense.

Accepted Answer

This question is no

Question 19

Below is a list of various balance sheet accounts and their balances. $\begin{array}{|l|r|r|} 
\hline& {\text { Debit }}&\text { Credit } \
\hline \text { Building } & \$ 100,000 \
\hline \text { Cash } & 2,000 \
\hline \text { Supplies } & 800 \
\hline \text { Furniture } & 2,600 \
\hline \text { Prepaid insurance } & 150 \\hline \text { Accumulated depreciation-furniture } & & \$ 900 \
\hline \text { Inventory } & & \
\hline \text { Land } & 25,000 \\hline \text { Accumulated depreciation-building } & & 4,800 \
\hline \text { Accounts rec eivable } & 1,500\
\hline
\end{array}$
- What are the total long-term assets that would be shown on the balance sheet?

Accepted Answer

A)  $127,600 
B)  $121,900 
C)  $128,400 
D)  $96,900 
A)  $127,600 
B)  $121,900 
C)  $128,400 
D)  $96,900

Question 20

Which of the following would be considered a long-term asset?

Accepted Answer

A)  Accounts receivable 
B)  Land 
C)  Inventory 
D)  Prepaid insurance 
A)  Accounts receivable 
B)  Land 
C)  Inventory 
D)  Prepaid insurance

Please refer to the partially completed worksheet below: How much was the Net income?

Accounts receivable is a permanent account.

The purpose of the depreciation adjustment is to:

Which of the following statements is an accurate interpretation of the current ratio?

Please refer to the worksheet below.Please complete the worksheet,including the balancing amounts in the last row.

Which of the following is TRUE if the income statement debit column exceeds the income statement credit column on a worksheet?

The definition of liquidity is how:

A balance sheet that has the assets listed above the liabilities and equity sections is a(n):

Which of the following accounts does NOT close at the end of the period?

Better Advice,a service company,uses reversing entries.On March 31,they posted the following adjusting entry to accrue utility expenses: Utility expense 650 Accounts payable 650 Which of the following represents the proper reversing entry to be posted on April 1?

As part of the closing process,revenues and expenses are closed to a temporary account called Net income (loss).

Only permanent accounts appear on the post-closing trial balance.

Under which of the following categories would Inventory appear?

Please refer to the worksheet below.Enter the following adjusting entry into the worksheet: At year-end,the company has only $20 of supplies left.

Where does Net income appear on a worksheet?

Which of the following would be considered the POOREST current ratio?

Under which of the following categories would Buildings appear?

Which of the following would be considered a long-term asset?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

Filters

Exam 4: Completing the Accounting Cycle

Please refer to the partially completed worksheet below: How much was the Net income?

Accounts receivable is a permanent account.

The purpose of the depreciation adjustment is to:

Which of the following statements is an accurate interpretation of the current ratio?

Please refer to the worksheet below.Please complete the worksheet,including the balancing amounts in the last row.

Which of the following is TRUE if the income statement debit column exceeds the income statement credit column on a worksheet?

The definition of liquidity is how:

A balance sheet that has the assets listed above the liabilities and equity sections is a(n):

Which of the following accounts does NOT close at the end of the period?

Better Advice,a service company,uses reversing entries.On March 31,they posted the following adjusting entry to accrue utility expenses: Utility expense 650 Accounts payable 650 Which of the following represents the proper reversing entry to be posted on April 1?

As part of the closing process,revenues and expenses are closed to a temporary account called Net income (loss).

Only permanent accounts appear on the post-closing trial balance.

Under which of the following categories would Inventory appear?

Please refer to the worksheet below.Enter the following adjusting entry into the worksheet: At year-end,the company has only $20 of supplies left.

Where does Net income appear on a worksheet?

Which of the following would be considered the POOREST current ratio?

Under which of the following categories would Buildings appear?

Which of the following would be considered a long-term asset?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

Filters