Question 1

The Salaries Payable account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 2

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 3

Dyer Service Company had the following unadjusted balances at December 31,2016: Salaries Payable,$0;Salaries Expense,$12,000.The following transactions took place on December 31,2016:
Accrued Salaries Expense,$5,000
Closed the Salaries Expense account.
The following transaction took place on January 4,2017:
Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2016 and $1,000 for the first few days in January 2017.
Prepare the journal entries for January 1,2017 and January 4,2017,assuming that reversing entries were made.

Accepted Answer

The answer of Dyer Service Company had the following unadjusted...

Question 4

The following contains information from the records of the Balfor Architecture Firm.
 
Which of the following statements is an accurate interpretation of the current ratio of Balfor Architecture Firm? (Round your answer to two decimals. )

Accepted Answer

A) The company has $2.19 of current assets for every $1.00 of liabilities. 
B) The company has $1.90 of current assets for every $1.00 of current liabilities. 
C) The company has $1.51 of current assets for every $1.00 of liabilities. 
D) The company has $0.61 of current assets for every $1.00 of current liabilities. 
A) The company has $2.19 of current assets for every $1.00 of liabilities. 
B) The company has $1.90 of current assets for every $1.00 of current liabilities. 
C) The company has $1.51 of current assets for every $1.00 of liabilities. 
D) The company has $0.61 of current assets for every $1.00 of current liabilities.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

What is the result if the amount of net income for the year is less than the amount of the owner's withdrawals?

Accepted Answer

A) Owner,Capital increases 
B) Cash balance decreases 
C) Cash balance increases 
D) Owner,Capital decreases 
A) Owner,Capital increases 
B) Cash balance decreases 
C) Cash balance increases 
D) Owner,Capital decreases

Question 7

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer)?

Accepted Answer

A) Land 
B) Equipment 
C) Building 
D) Accounts Receivable 
A) Land 
B) Equipment 
C) Building 
D) Accounts Receivable

Question 8

The Accumulated Depreciation account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following accounts will have an ending balance after the closing process is completed?

Accepted Answer

A) Owner,Withdrawals 
B) Rent Expense 
C) Accumulated Depreciation 
D) Service Revenue 
A) Owner,Withdrawals 
B) Rent Expense 
C) Accumulated Depreciation 
D) Service Revenue

Question 10

Reversing entries are ________.

Accepted Answer

A) the exact opposite of a prior adjusting entry 
B) dated the last day of the new period 
C) required according to GAAP 
D) expensive to record and time consuming 
A) the exact opposite of a prior adjusting entry 
B) dated the last day of the new period 
C) required according to GAAP 
D) expensive to record and time consuming

Question 11

The current ratio measures a company's ________.

Accepted Answer

A) overall ability to pay liabilities 
B) ability to pay current liabilities with current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow 
A) overall ability to pay liabilities 
B) ability to pay current liabilities with current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow

Question 12

The beginning balance in the Owner,Capital account of a company was $13,000.The revenues and expenses were $240,000 and $120,000,respectively.During the year,the owner made withdrawals of $6,000.The ending balance in the Owner,Capital was $114,000.(Assume that the opening balance of in Owner,Capital was zero,and the owner made no new contributions during the year. )

Accepted Answer

A) True 
 B)False

Question 13

Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts?

Accepted Answer

The revenues,expenses,and the owner's wi

Question 14

The following is the adjusted trial balance as of December 31,2017 of Peri Brothers Co.:
   
Provide the closing entry for expenses.

Accepted Answer

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

Question 15

Net income (loss)is the difference between the total debits and the total credits in the income statement columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The current ratio shows the profitability of a firm.

Accepted Answer

A) True 
 B)False

Question 18

Salaries Payable,Interest Payable,and Unearned Revenue are examples of ________.

Accepted Answer

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

Question 19

Under which of the following categories would bonds held as an investment for more than a year 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 20

An income statement includes ________.

Accepted Answer

A) Land and Salaries Payable 
B) Owner's Capital and Owner's Withdrawals 
C) Furniture and Cash 
D) Service Revenue and Utilities Expense 
A) Land and Salaries Payable 
B) Owner's Capital and Owner's Withdrawals 
C) Furniture and Cash 
D) Service Revenue and Utilities Expense

Exam 4: Completing the Accounting Cycle

The Salaries Payable account is a permanent account.

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

The following contains information from the records of the Balfor Architecture Firm. Which of the following statements is an accurate interpretation of the current ratio of Balfor Architecture Firm? (Round your answer to two decimals. )

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

What is the result if the amount of net income for the year is less than the amount of the owner's withdrawals?

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer)?

The Accumulated Depreciation account is a permanent account.

Which of the following accounts will have an ending balance after the closing process is completed?

Reversing entries are ________.

The current ratio measures a company's ________.

Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts?

The following is the adjusted trial balance as of December 31,2017 of Peri Brothers Co.: Provide the closing entry for expenses.

Net income (loss)is the difference between the total debits and the total credits in the income statement columns of the worksheet.

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

The current ratio shows the profitability of a firm.

Salaries Payable,Interest Payable,and Unearned Revenue are examples of ________.

Under which of the following categories would bonds held as an investment for more than a year appear?

An income statement includes ________.

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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