Exam 4: Completing the Accounting Cycle

The following is the adjusted trial balance as of December 31, 2015 of Martin Watch Company: Provide the closing entry for Service Revenue.

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total current liabilities shown on the balance sheet?

Which of the following statements is true of the accounting cycle?

To which of the following accounts should the balance in the Income Summary account be closed?

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

The permanent accounts-assets, liabilities, and capital-are closed to the Owner's Name, Capital account.

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

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: The insurance has been prepaid for the next half year. What are the total current assets that would be shown on the balance sheet?

The Accounts Payable account is a temporary account.

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

The assets which do not have a physical form are called:

The following contains information from the records of the Wellborn Engineers and Architects. Calculate the current ratio.

The Cash account is a temporary account.

Which of the following accounts has a balance equal to Net Income immediately before it is closed?

Swan Song's adjusted trial balance as of December 31, 2014 is given below: Compute the current ratio.

The following is the adjusted trial balance from the worksheet for Tuttle Photography.

The Depreciation Expense account is a temporary account.

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

Rose Company earned revenues of $15,000 and incurred expenses of $9,000. The withdrawals of Mary Rose, the owner, were $3,000. What is the balance in the Income Summary account after closing Net Income or loss to the Rose, Capital account?

Prepaid Rent is always classified as a long-term asset.