Exam 4: Completing the Accounting Cycle

John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. If no withdrawals were made by Smith during the year, the ending balance in Smith, Capital must be $90,000.

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

The current ratio measures a company's:

The Owner's Name, Capital account is a permanent account.

A balance sheet prepared in the report form lists the assets on the left, and the liabilities and owner's equity on the right.

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

Under which of the following categories would Accounts Receivable appear?

The Office Supplies Expense account is a temporary account.

Which of the following accounts will be closed by crediting the Income Summary account?

The Notes Payable that are due within two years are classified as:

The financial statements are prepared from the:

The Office Supplies account is a temporary account.

A company has $130,000 in current assets; $500,000 in total assets; $90,000 in current liabilities, and $110,000 in total liabilities. The company has a current ratio of:

A reversing entry is:

Property, plant and equipment are categorized as:

Revenue and expense accounts are closed to the Income Summary account.

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

GAAP requires publicly traded companies to prepare a post-closing trial balance and publish it in their annual report.

The following is the adjusted trial balance as of December 31, 2015 of Current Times Watch Company: Provide the closing entry for Owner's Withdrawals.

Which of the following accounts will be included in a post-closing trial balance?