Question 1

Explain why temporary accounts are closed each period.

Accepted Answer

Temporary accounts are closed at the end...

Question 2

The current ratio is used to help assess a company's ability to pay its debts in the near future.

Accepted Answer

A) True 
 B)False

Question 3

The following items appeared on a company's December 31 work sheet for the current period. Based on the following information, what is the net income for the current period?

Accepted Answer

A)   $1,400.
B)   $1,855.
C)   $1,905.
D)   $2,060.
E)   $4,670.F) A) and C)
G) None of the above

Question 4

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Accepted Answer

A)   Office Equipment.
B)   Accumulated Depreciation-Office Equipment.
C)   Depreciation Expense-Office Equipment.
D)   Ted Nash, Capital.
E)   Salaries Payable.F) A) and B)
G) D) and E)

Question 5

All of the following regarding current ratio are except:

Accepted Answer

A)   Current ratio is calculated by dividing current assets by current liabilities.
B)   Current ratio helps to assess a company's ability to pay its debts in the near future.
C)   Current ratio does not affect a creditor's decision on when to allow a company to buy on credit.
D)   Current ratio can affect a creditor's decision about whether to lend money to a company.
E)   Current ratio can reveal problems in a company if it is less than 1.F) C) and E)
G) A) and E)

Question 6

Compute Dave Company's current ratio using the following information:

Accepted Answer

($20,000+$...

Question 7

Which of the following is the usual final step in the accounting cycle?

Accepted Answer

A)   Journalizing transactions.
B)   Preparing an adjusted trial balance.
C)   Preparing a post-closing trial balance.
D)   Preparing the financial statements.
E)   Preparing a work sheet.F) C) and D)
G) A) and B)

Question 8

Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the prior accounting period.

Accepted Answer

A) True 
 B)False

Question 9

Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

Accepted Answer

A)   Adjusting entries.
B)   Closing entries.
C)   Final entries.
D)   Work sheet entries.
E)   Updating entries.F) A) and E)
G) None of the above

Question 10

Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:

Accepted Answer

A)   Real accounts.
B)   Temporary accounts.
C)   Closing accounts.
D)   Permanent accounts.
E)   Balance sheet accounts.F) A) and B)
G) B) and D)

Question 11

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of the prior accounting period.

Accepted Answer

Accrued as...

Question 12

Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.

Accepted Answer

A) True 
 B)False

Question 13

Listed below are a number of accounts. Use the table below to classify each account. Indicate whether it is a temporary or permanent account, whether it is included in the Income Statement or Balance sheet, and if it is closed at the end of the accounting period, and, if so, how it is closed. The first one is done as an example.

Accepted Answer

The answer of Listed below are a number of accounts....

Question 14

Based on the following information from Raptor Company's balance sheet, calculate the current ratio.

Accepted Answer

A)   .44.
B)   3.51.
C)   3.33.
D)   1.06.
E)   2.23.F) A) and D)
G) A) and C)

Question 15

Reversing entries:

Accepted Answer

A)   are necessary when journal entries have been incorrectly recorded.
B)   are a required step in the accounting cycle.
C)   will often result in abnormal account balances in some accounts.
D)   are required only if the company uses accounting software to record journal entries.
E)   must be made before preparing the post-closing trial balance.F) A) and C)
G) None of the above

Question 16

Adjusting entries are normally entered in the general journal before they are posted to the work sheet.

Accepted Answer

A) True 
 B)False

Question 17

The work sheet is a required report.

Accepted Answer

A) True 
 B)False

Question 18

If the Balance Sheet and Statement of Changes in Equity columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet and Statement of Changes in Equity Credit column, the cause could be:

Accepted Answer

A)   An expense amount entered in the Balance Sheet and Statement of Changes in Equity Debit column.
B)   A revenue amount entered in the Balance Sheet and Statement of Changes in Equity Credit column.
C)   An asset amount entered in the Income Statement and Statement of Changes in Equity Debit column.
D)   A liability amount entered in the Income Statement and Statement of Changes in Equity Credit column.
E)   An expense amount entered in the Balance Sheet and Statement of Changes in Equity Credit column.F) B) and E)
G) All of the above

Question 19

A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.

Accepted Answer

A) True 
 B)False

Question 20

Current liabilities include accounts receivable, unearned revenues, and salaries payable.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The current ratio is used to help assess a company's ability to pay its debts in the near future.

Correct Answer
verified

Explain why temporary accounts are closed each period.

Correct Answer
verified
Temporary accounts are closed at the end...
View Answer

Current liabilities include accounts receivable, unearned revenues, and salaries payable.

Correct Answer
verified

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Correct Answer
verified

Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

Correct Answer
verified

If the Balance Sheet and Statement of Changes in Equity columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet and Statement of Changes in Equity Credit column, the cause could be:

Correct Answer
verified

A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.

Correct Answer
verified

Reversing entries:

Correct Answer
verified

Correct Answer
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Reversing entries are linked to ________ and _ that were created by adjusting entries at the end of the prior accounting period.

Correct Answer
verified
Accrued as...
View Answer

All of the following regarding current ratio are except:

Correct Answer
verified

The following items appeared on a company's December 31 work sheet for the current period. Based on the following information, what is the net income for the current period?

Correct Answer
verified

Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.

Correct Answer
verified

Based on the following information from Raptor Company's balance sheet, calculate the current ratio.

Correct Answer
verified

The work sheet is a required report.

Correct Answer
verified

Which of the following is the usual final step in the accounting cycle?

Correct Answer
verified

Compute Dave Company's current ratio using the following information:

Correct Answer
verified
($20,000+$...
View Answer

Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:

Correct Answer
verified

Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the prior accounting period.

Correct Answer
verified

Adjusting entries are normally entered in the general journal before they are posted to the work sheet.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

The current ratio is used to help assess a company's ability to pay its debts in the near future.

Correct AnswerverifiedShow Answer

Explain why temporary accounts are closed each period.

Correct AnswerverifiedTemporary accounts are closed at the end...View AnswerShow Answer

Current liabilities include accounts receivable, unearned revenues, and salaries payable.

Correct AnswerverifiedShow Answer

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Correct AnswerverifiedShow Answer

Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals accounts for the upcoming period and to update the owner's capital account for the events of the period just finished are referred to as:

Correct AnswerverifiedShow Answer

If the Balance Sheet and Statement of Changes in Equity columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet and Statement of Changes in Equity Credit column, the cause could be:

Correct AnswerverifiedShow Answer

A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.

Correct AnswerverifiedShow Answer

Reversing entries:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of the prior accounting period.

Correct AnswerverifiedAccrued as...View AnswerShow Answer

All of the following regarding current ratio are except:

Correct AnswerverifiedShow Answer

The following items appeared on a company's December 31 work sheet for the current period. Based on the following information, what is the net income for the current period?

Correct AnswerverifiedShow Answer

Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.

Correct AnswerverifiedShow Answer

Based on the following information from Raptor Company's balance sheet, calculate the current ratio.

Correct AnswerverifiedShow Answer

The work sheet is a required report.

Correct AnswerverifiedShow Answer

Which of the following is the usual final step in the accounting cycle?

Correct AnswerverifiedShow Answer

Compute Dave Company's current ratio using the following information:

Correct Answerverified($20,000+$...View AnswerShow Answer

Revenues, expenses, and withdrawals accounts, which are closed at the end of each accounting period are:

Correct AnswerverifiedShow Answer

Reversing entries are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of the prior accounting period.

Correct AnswerverifiedShow Answer

Adjusting entries are normally entered in the general journal before they are posted to the work sheet.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
Temporary accounts are closed at the end...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Reversing entries are linked to ________ and _ that were created by adjusting entries at the end of the prior accounting period.

Correct Answer
verified
Accrued as...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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($20,000+$...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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