Exam 4: Completing the Accounting Cycle

Which account has a balance equal to net income immediately before it is closed?

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

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 Revenues.

The last two columns generally found on the right side of the worksheet are the income statement columns.

Which of the following is the measure of how quickly an item can be converted to cash?