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Exam 4: Completing the Accounting Cycle

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Question 71

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In a balance sheet, assets are classified as either current or long term, depending on their liquidity.

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Question 72

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Which of the following steps must be completed before preparing the adjusted trial balance?

A) preparing the post-closing trial balance
B) posting of journal entries to the accounts
C) preparation of the closing entries
D) preparation of the financial statements

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Question 73

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The Owner, Withdrawals account is a permanent account.

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year, are called ________ assets.

The current ratio measures ________.

Which of the following is a permanent account?

Refer to the following adjusted trial balance. What will the final ending balance in the Owner, Capital account be after posting the closing entries?

The following is the adjusted trial balance as of December 31, 2016 of Aims Photography: Provide the closing entry for expenses.

Which of the following accounts will be closed by debiting the Income Summary account?

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.

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.

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

The current ratio measures a company's ________.

Asset and liability accounts are closed to the Income Summary account.

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

Notes Payable due within two years are classified as ________.

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet.

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

Which of the following entries is necessary to close the appropriate depreciation account at the end of the year?