Question 1

Dogwood Company earned revenues of $19,000 and incurred expenses of $7,000. The owner made withdrawals of $3,500. What is the balance in the Income Summary account prior to closing net income or loss to the Owner, Capital account?

Accepted Answer

A)   debit balance of $12,000
B)   debit balance of $8,500
C)   credit balance of $12,000
D)   credit balance of $19,000

Question 2

Patents, copyrights, and trademarks are examples of ________.

Accepted Answer

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

Question 3

An account that is not closed at the end of the period is called a(n)  ________.

Accepted Answer

A)   expense account
B)   temporary account
C)   permanent account
D)   revenue account

Question 4

Which of the following accounts would appear in the balance sheet debit column?

Accepted Answer

A)   Unearned Revenue
B)   Accumulated Depreciation
C)   Service Revenue
D)   Prepaid Insurance

Question 5

Liquidity is a measure of how ________.

Accepted Answer

A)   quickly an asset may be converted into cash
B)   long an asset can be used
C)   easily an asset can be exchanged for another asset
D)   short an operating cycle is

Question 6

The beginning balance in the Owner, Capital account of Cedar Technologies was $86,000. The revenues and expenses amounted to $55,000 and $43,000, respectively. During the year, the owner did not make any additional contributions or withdrawals. The balance of the Owner, Capital account will be $141,000 at the end of the year.

Accepted Answer

A) True 
 B)False

Question 7

The smaller the current ratio, the higher the firm's ability to repay its current debts.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following accounts would appear in the income statement credit column?

Accepted Answer

A)   Service Revenue
B)   Prepaid Insurance
C)   Unearned Revenue
D)   Depreciation Expense

Question 9

List the steps of the accounting cycle that take place during the period.

Accepted Answer

Step 1. Start with beginning a...

Question 10

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 ________.

Accepted Answer

A)   production time
B)   operating cycle
C)   accounting cycle
D)   sales time

Question 11

In an accounting cycle, an analysis of transactions is performed at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of an intangible asset?

Accepted Answer

A)   Equipment
B)   Plant
C)   Property
D)   Copyright

Question 13

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

Accepted Answer

A)   It takes place only at the end of an accounting period.
B)   It involves preparation of adjusting entries after the closing entries.
C)   It ignores the beginning balances of accounts.
D)   It is a process by which financial statements for a period are produced.

Question 14

The Cash account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   Income Summary
B)   Owner, Withdrawals
C)   Net Income
D)   Owner, Capital

Question 16

The operating cycle is the time span required for a business to repay its long-term liabilities.

Accepted Answer

A) True 
 B)False

Question 17

Calculate the current ratio using the following information: (Round your answer to two decimals.)

Accepted Answer

A)   2.31
B)   3.00
C)   3.11
D)   2.08

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

Which of the following is a plant asset?

Accepted Answer

A)   Equipment
B)   Patents
C)   Trademark
D)   Accounts Receivable

Exam 4: Completing the Accounting Cycle

Which of the following is an example of an intangible asset?

Correct Answer
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An account that is not closed at the end of the period is called a(n) ________.

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

Correct Answer
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Calculate the current ratio using the following information: (Round your answer to two decimals.)

Correct Answer
verified

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 ________.

Correct Answer
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The smaller the current ratio, the higher the firm's ability to repay its current debts.

Correct Answer
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Which of the following is a plant asset?

Correct Answer
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Which of the following accounts has a balance equal to net income immediately before it is closed?

Correct Answer
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Which of the following accounts would appear in the balance sheet debit column?

Correct Answer
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Liquidity is a measure of how ________.

Correct Answer
verified

Patents, copyrights, and trademarks are examples of ________.

Correct Answer
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Correct Answer
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List the steps of the accounting cycle that take place during the period.

Correct Answer
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Step 1. Start with beginning a...
View Answer

The Cash account is a temporary account.

Correct Answer
verified

The operating cycle is the time span required for a business to repay its long-term liabilities.

Correct Answer
verified

Reversing entries are ________.

Correct Answer
verified

Dogwood Company earned revenues of $19,000 and incurred expenses of $7,000. The owner made withdrawals of $3,500. What is the balance in the Income Summary account prior to closing net income or loss to the Owner, Capital account?

Correct Answer
verified

Which of the following accounts would appear in the income statement credit column?

Correct Answer
verified

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

Correct Answer
verified

In an accounting cycle, an analysis of transactions is performed at the end of each accounting period.

Correct Answer
verified

Exam 4: Completing the Accounting Cycle

Which of the following is an example of an intangible asset?

Correct AnswerverifiedShow Answer

An account that is not closed at the end of the period is called a(n) ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Calculate the current ratio using the following information: (Round your answer to two decimals.)

Correct AnswerverifiedShow Answer

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 ________.

Correct AnswerverifiedShow Answer

The smaller the current ratio, the higher the firm's ability to repay its current debts.

Correct AnswerverifiedShow Answer

Which of the following is a plant asset?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following accounts would appear in the balance sheet debit column?

Correct AnswerverifiedShow Answer

Liquidity is a measure of how ________.

Correct AnswerverifiedShow Answer

Patents, copyrights, and trademarks are examples of ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

List the steps of the accounting cycle that take place during the period.

Correct AnswerverifiedStep 1. Start with beginning a...View AnswerShow Answer

The Cash account is a temporary account.

Correct AnswerverifiedShow Answer

The operating cycle is the time span required for a business to repay its long-term liabilities.

Correct AnswerverifiedShow Answer

Reversing entries are ________.

Correct AnswerverifiedShow Answer

Dogwood Company earned revenues of $19,000 and incurred expenses of $7,000. The owner made withdrawals of $3,500. What is the balance in the Income Summary account prior to closing net income or loss to the Owner, Capital account?

Correct AnswerverifiedShow Answer

Which of the following accounts would appear in the income statement credit column?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In an accounting cycle, an analysis of transactions is performed at the end of each accounting period.

Correct AnswerverifiedShow 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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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
verified
Step 1. Start with beginning a...
View Answer

Correct Answer
verified

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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