Question 1

Patents,copyrights,and trademarks are examples of ________.

Accepted Answer

A) short-term investments 
B) fixed assets 
C) long-term investments 
D) intangible assets 
A) short-term investments 
B) fixed assets 
C) long-term investments 
D) intangible assets

Question 2

The Accounts Payable account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) Accumulated Depreciation-Building 
B) Rent Expense 
C) Interest Expense 
D) Service Revenue 
A) Accumulated Depreciation-Building 
B) Rent Expense 
C) Interest Expense 
D) Service Revenue

Question 5

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Accepted Answer

A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment 
A) Rent Revenue 
B) Insurance Expense 
C) Salaries Payable 
D) Equipment

Question 6

Which of the following is the most liquid asset?

Accepted Answer

A) Building 
B) Prepaid Expenses 
C) Accounts Receivable 
D) Cash 
A) Building 
B) Prepaid Expenses 
C) Accounts Receivable 
D) Cash

Question 7

The Depreciation Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 8

The Office Supplies account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 9

A reversing entry is ________.

Accepted Answer

A) a journal entry used to close the temporary accounts after preparation of financial statements 
B) a special journal entry used to make the adjustments that took place after preparing the trial balance 
C) a special journal entry that eases the burden of accounting for transactions in the next period 
D) a journal entry prepared at the end of an accounting period to match assets with liabilities 
A) a journal entry used to close the temporary accounts after preparation of financial statements 
B) a special journal entry used to make the adjustments that took place after preparing the trial balance 
C) a special journal entry that eases the burden of accounting for transactions in the next period 
D) a journal entry prepared at the end of an accounting period to match assets with liabilities

Question 10

The balances of select accounts of McCarthy Company as of December 31,2016 are given below:
 
The Unearned Revenue is the amount of cash received for services to be rendered in January 2017.Interest Payable will be paid on February 5,2017.What are the total long-term liabilities shown on the balance sheet?

Accepted Answer

A) $1,300 
B) $5,000 
C) $5,400 
D) $21,000 
A) $1,300 
B) $5,000 
C) $5,400 
D) $21,000

Question 11

Closing entries are journalized and posted ________.

Accepted Answer

A) throughout the accounting period 
B) before posting the adjusting entries 
C) after preparing the post-closing trial balance 
D) after preparing the financial statements 
A) throughout the accounting period 
B) before posting the adjusting entries 
C) after preparing the post-closing trial balance 
D) after preparing the financial statements

Question 12

An increase in the current ratio implies that the profitability of the company has increased from the previous period.

Accepted Answer

A) True 
 B)False

Question 13

The following is the adjusted trial balance as of December 31,2017 of Current Times Watch Co.:
   
Provide the closing entry for the Income Summary account.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 14

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 15

In which of the columns of the worksheet would Net Income be found?

Accepted Answer

A) the unadjusted trial balance credit column,the adjusted trial balance credit column,and the balance sheet credit column 
B) the unadjusted trial balance debit column,the adjusted trial balance debit column,and the balance sheet debit column 
C) the balance sheet debit column and the income statement credit column 
D) the balance sheet credit column and the income statement debit column 
A) the unadjusted trial balance credit column,the adjusted trial balance credit column,and the balance sheet credit column 
B) the unadjusted trial balance debit column,the adjusted trial balance debit column,and the balance sheet debit column 
C) the balance sheet debit column and the income statement credit column 
D) the balance sheet credit column and the income statement debit column

Question 16

The worksheet helps accountants to ________.

Accepted Answer

A) make the trial balance 
B) prepare the financial statements 
C) prepare the unadjusted trial balance 
D) maintain books of accounts without a journal 
A) make the trial balance 
B) prepare the financial statements 
C) prepare the unadjusted trial balance 
D) maintain books of accounts without a journal

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

In the worksheet,the adjusted balance of the Service Revenue account appears in the credit column of the income statement.

Accepted Answer

A) True 
 B)False

Question 19

List the order in which the balance sheet,statement of owner's equity and income statement are prepared.Briefly discuss why this order is necessary.

Accepted Answer

The order in which these statements are

Question 20

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 and safe ratio. 
C) A current ratio of 2.0 indicates strong ability to pay current liabilities. 
D) A current ratio of 0.60 or lower is a good and 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 and safe ratio. 
C) A current ratio of 2.0 indicates strong ability to pay current liabilities. 
D) A current ratio of 0.60 or lower is a good and safe ratio.

Exam 4: Completing the Accounting Cycle

Patents,copyrights,and trademarks are examples of ________.

The Accounts Payable account is a temporary account.

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

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

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Which of the following is the most liquid asset?

The Depreciation Expense account is a temporary account.

The Office Supplies account is a temporary account.

A reversing entry is ________.

Closing entries are journalized and posted ________.

An increase in the current ratio implies that the profitability of the company has increased from the previous period.

The following is the adjusted trial balance as of December 31,2017 of Current Times Watch Co.: Provide the closing entry for the Income Summary account.

Where does net income appear on a worksheet?

In which of the columns of the worksheet would Net Income be found?

The worksheet helps accountants to ________.

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

In the worksheet,the adjusted balance of the Service Revenue account appears in the credit column of the income statement.

List the order in which the balance sheet,statement of owner's equity and income statement are prepared.Briefly discuss why this order is necessary.

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

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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