Question 1

Depreciation allocates the cost of land to expense over the useful life of the land.

Accepted Answer

A) True 
 B)False

Question 2

Under accrual accounting,revenue is recorded:

Accepted Answer

A) when the cash is received,regardless of when the services are performed. 
B) when the services are performed,regardless of when the cash is received. 
C) at the end of every month. 
D) only if the cash is received at the same time the services are performed. 
A) when the cash is received,regardless of when the services are performed. 
B) when the services are performed,regardless of when the cash is received. 
C) at the end of every month. 
D) only if the cash is received at the same time the services are performed.

Question 3

Expenses have a future benefit to the company.

Accepted Answer

A) True 
 B)False

Question 4

The debt ratio is computed by dividing:

Accepted Answer

A) total liabilities by total assets. 
B) current liabilities by total assets. 
C) total assets by total liabilities. 
D) total assets by current liabilities. 
A) total liabilities by total assets. 
B) current liabilities by total assets. 
C) total assets by total liabilities. 
D) total assets by current liabilities.

Question 5

In an adjusting entry,the debit to the Unearned Revenue account represents the:

Accepted Answer

A) value of services owed to customers. 
B) amount of cash to be paid for future services. 
C) amount of cash to be collected from customers. 
D) value of services performed in the current period. 
A) value of services owed to customers. 
B) amount of cash to be paid for future services. 
C) amount of cash to be collected from customers. 
D) value of services performed in the current period.

Question 6

Trevor Company has the following adjusted trial balance at December 31,2019:   What is the Retained Earnings balance at December 31,2019?

Accepted Answer

A) $20,700 
B) $23,400 
C) $24,200 
D) $21,500 
A) $20,700 
B) $23,400 
C) $24,200 
D) $21,500

Question 7

A company has current assets of $105,000 and current liabilities of $35,000.A $6,000 sale on account was made.After this transaction,its current ratio will be: (Round your final answer to two decimal places. )

Accepted Answer

A) 0.33. 
B) 2.83. 
C) 3.00. 
D) 3.17. 
A) 0.33. 
B) 2.83. 
C) 3.00. 
D) 3.17.

Question 8

Fisher Accounting's fiscal year ends on July 31.Accounts are adjusted only on the last day of the fiscal year.On July 31,before adjusting journal entries were prepared,the balance of Supplies was $1,250.A physical count revealed $800 of supplies on hand.Prepare the July 31 adjusting journal entry.Omit explanations.

Accepted Answer

The answer of Fisher Accounting's fiscal year ends on July...

Question 9

Rosewood Company had current assets of $612,current liabilities of $393,total assets of $722,and long-term liabilities of $200.What is Rosewood's debt ratio? (Round your final answer to two decimal places. )

Accepted Answer

A) 0.54 
B) 1.56 
C) 0.82 
D) 0.28 
A) 0.54 
B) 1.56 
C) 0.82 
D) 0.28

Question 10

The statement of retained earnings reports a company's net income or net loss for a period of time.What is the source of the amount of net income or net loss?

Accepted Answer

A) Balance Sheet 
B) Cash Dividend Statement 
C) Trial Balance Worksheet 
D) Income Statement 
A) Balance Sheet 
B) Cash Dividend Statement 
C) Trial Balance Worksheet 
D) Income Statement

Question 11

The journal entry to record a cash sale will be the same under the accrual and cash-basis of accounting.

Accepted Answer

A) True 
 B)False

Question 12

Kincaid Company's Retained Earnings balance on January 1 was $9,000.During the current year,Kincaid earned $3,100 in revenues and incurred $4,300 in expenses.Kincaid declared and paid $3,000 in dividends,all in cash.After the closing entries are made,Kincaid's Retained Earnings balance on December 31 will be:

Accepted Answer

A) $7,800. 
B) $9,100. 
C) $9,000. 
D) $4,800. 
A) $7,800. 
B) $9,100. 
C) $9,000. 
D) $4,800.

Question 13

On June 1,2019,Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California.The rent covers the period,June 1,2019 through November 30,2019.On June 1,Starbucks will record ________.On June 30,Starbucks will record ________.

Accepted Answer

A) Rent Expense of $66,000;nothing 
B) nothing;Rent Expense of $66,000 
C) nothing;Rent Expense of $11,000 
D) Prepaid Rent of $66,000;Rent Expense of $11,000 
A) Rent Expense of $66,000;nothing 
B) nothing;Rent Expense of $66,000 
C) nothing;Rent Expense of $11,000 
D) Prepaid Rent of $66,000;Rent Expense of $11,000

Question 14

When preparing the financial statements of a company:

Accepted Answer

A) liabilities are not classified on the balance sheet. 
B) current assets are the most liquid assets. 
C) the balance sheet must be prepared using the account format. 
D) the income statement can be prepared using the multistep or report format. 
A) liabilities are not classified on the balance sheet. 
B) current assets are the most liquid assets. 
C) the balance sheet must be prepared using the account format. 
D) the income statement can be prepared using the multistep or report format.

Question 15

If a Trial Balance Worksheet is prepared,which columns are used to prepare the financial statements?

Accepted Answer

A) unadjusted trial balance columns 
B) adjustments columns 
C) adjusted trial balance columns 
D) none of the above 
A) unadjusted trial balance columns 
B) adjustments columns 
C) adjusted trial balance columns 
D) none of the above

Question 16

The following accounts and balances are taken from Brown Company's adjusted trial balance:
   Prepare the closing entries.

Accepted Answer

The answer of The following accounts and balances are taken...

Question 17

During the closing process,each revenue account is credited for the amount of its balance.

Accepted Answer

A) True 
 B)False

Question 18

Selected information for Greene,Inc. ,as of December 31,2019,follows:
   Compute (show all computations and round final answers to two decimal places):
a.Net working capital
b.Current ratio
c.Debt ratio

Accepted Answer

The answer of Selected information for Greene,Inc. ,as of December...

Question 19

An expense occurred in 2018,and it is not paid until 2019.Using cash-basis accounting,the expense should appear on:

Accepted Answer

A) the 2018 income statement. 
B) the 2019 income statement. 
C) whichever income statement the business prefers. 
D) both the 2018 and 2019 income statements. 
A) the 2018 income statement. 
B) the 2019 income statement. 
C) whichever income statement the business prefers. 
D) both the 2018 and 2019 income statements.

Question 20

When classifying assets and liabilities on the balance sheet:

Accepted Answer

A) assets are classified as liquid and non-liquid. 
B) for most businesses the operating cycle is two years. 
C) furniture and fixtures are long-term assets. 
D) current liabilities include accounts receivable. 
A) assets are classified as liquid and non-liquid. 
B) for most businesses the operating cycle is two years. 
C) furniture and fixtures are long-term assets. 
D) current liabilities include accounts receivable.

Depreciation allocates the cost of land to expense over the useful life of the land.

Under accrual accounting,revenue is recorded:

Expenses have a future benefit to the company.

The debt ratio is computed by dividing:

In an adjusting entry,the debit to the Unearned Revenue account represents the:

Trevor Company has the following adjusted trial balance at December 31,2019: What is the Retained Earnings balance at December 31,2019?

A company has current assets of $105,000 and current liabilities of $35,000.A $6,000 sale on account was made.After this transaction,its current ratio will be: (Round your final answer to two decimal places. )

Rosewood Company had current assets of $612,current liabilities of $393,total assets of $722,and long-term liabilities of $200.What is Rosewood's debt ratio? (Round your final answer to two decimal places. )

The statement of retained earnings reports a company's net income or net loss for a period of time.What is the source of the amount of net income or net loss?

The journal entry to record a cash sale will be the same under the accrual and cash-basis of accounting.

On June 1,2019,Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California.The rent covers the period,June 1,2019 through November 30,2019.On June 1,Starbucks will record .On June 30,Starbucks will record .

When preparing the financial statements of a company:

If a Trial Balance Worksheet is prepared,which columns are used to prepare the financial statements?

The following accounts and balances are taken from Brown Company's adjusted trial balance: Prepare the closing entries.

During the closing process,each revenue account is credited for the amount of its balance.

Selected information for Greene,Inc. ,as of December 31,2019,follows: Compute (show all computations and round final answers to two decimal places): a.Net working capital b.Current ratio c.Debt ratio

An expense occurred in 2018,and it is not paid until 2019.Using cash-basis accounting,the expense should appear on:

When classifying assets and liabilities on the balance sheet:

The Financial Statements

Transaction Analysis

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 3: Accrual Accounting Income

Depreciation allocates the cost of land to expense over the useful life of the land.

Under accrual accounting,revenue is recorded:

Expenses have a future benefit to the company.

The debt ratio is computed by dividing:

In an adjusting entry,the debit to the Unearned Revenue account represents the:

Trevor Company has the following adjusted trial balance at December 31,2019: What is the Retained Earnings balance at December 31,2019?

A company has current assets of $105,000 and current liabilities of $35,000.A $6,000 sale on account was made.After this transaction,its current ratio will be: (Round your final answer to two decimal places. )

Rosewood Company had current assets of $612,current liabilities of $393,total assets of $722,and long-term liabilities of $200.What is Rosewood's debt ratio? (Round your final answer to two decimal places. )

The statement of retained earnings reports a company's net income or net loss for a period of time.What is the source of the amount of net income or net loss?

The journal entry to record a cash sale will be the same under the accrual and cash-basis of accounting.

On June 1,2019,Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California.The rent covers the period,June 1,2019 through November 30,2019.On June 1,Starbucks will record ________.On June 30,Starbucks will record ________.

When preparing the financial statements of a company:

If a Trial Balance Worksheet is prepared,which columns are used to prepare the financial statements?

The following accounts and balances are taken from Brown Company's adjusted trial balance: Prepare the closing entries.

During the closing process,each revenue account is credited for the amount of its balance.

Selected information for Greene,Inc. ,as of December 31,2019,follows: Compute (show all computations and round final answers to two decimal places): a.Net working capital b.Current ratio c.Debt ratio

An expense occurred in 2018,and it is not paid until 2019.Using cash-basis accounting,the expense should appear on:

When classifying assets and liabilities on the balance sheet:

The Financial Statements

Transaction Analysis

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

On June 1,2019,Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California.The rent covers the period,June 1,2019 through November 30,2019.On June 1,Starbucks will record .On June 30,Starbucks will record .