Question 1

Use the balance sheet you prepared above to calculate the current ratio. Comment on the company's liquidity position

Accepted Answer

The current ratio is1,885 @#LAT-DLM& 2,215 = .85 :

Question 2

Using the following partial Excel work sheet for Pendulum Service Co., prepare the Income Statement, the Statement of Changes in Equity, and an unclassified Balance Sheet. Assume the owner did not make any investments in the business during the year.

Accepted Answer

The answer of Using the following partial Excel work sheet...

Question 3

Sharp has current assets of $15,000 and current liabilities of $9,500. Its current ratio is 1.6 to 1.

Accepted Answer

A) True 
 B)False

Question 4

Long-term investments can include land not currently being used in operations.

Accepted Answer

A) True 
 B)False

Question 5

Calculate the current ratio in each of the following cases.
 $$\begin{array} { | l | r | r | } 
\hline & \text { Current Assets } & \text { Current Libilities } \
\hline \text { Case 1 } & \$ 60,000 & \$ 30,000 \
\hline \text { Case 2 } & \$ 150,000 & \$ 85,000 \
\hline \text { Case 3 } & \$ 57,000 & \$ 53,000 \
\hline \text { Case 4 } & \$ 130,000 & \$ 127,000 \
\hline \text { Case 5 } & \$ 70,000 & \$ 110,000 \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the current ratio in each of...

Question 6

Current liabilities include accounts receivable, unearned revenues, and taxes owed.

Accepted Answer

A) True 
 B)False

Question 7

Financial statements prepared from a work sheet offer more information than if it is not used and statements are just prepared from an adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 8

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle.

Accepted Answer

A) True 
 B)False

Question 9

The eight recurring steps performed each accounting period, starting with recording transactions in the journal and continuing through the post-closing trial balance, is called the

Accepted Answer

A)  Accounting period 
B)  Operating cycle 
C)  Accounting cycle 
D)  Closing cycle 
E)  Natural business year 
A)  Accounting period 
B)  Operating cycle 
C)  Accounting cycle 
D)  Closing cycle 
E)  Natural business year

Question 10

On a work sheet, adjusted balances of revenues and expenses are sorted to the Income Statement columns.

Accepted Answer

A) True 
 B)False

Question 11

Shown below is Bill Brady Law's adjusted trial balance at the end of its annual accounting period.
   Prepare the necessary closing entries.

Accepted Answer

The answer of Shown below is Bill Brady Law's adjusted...

Question 12

In a sole proprietorship, the Income Summary account is closed to the capital account.

Accepted Answer

A) True 
 B)False

Question 13

Describe a classified balance sheet.

Accepted Answer

Classified balance sheets usually report

Question 14

A classified balance sheet

Accepted Answer

A)  Measures a company's ability to pay its bills on time 
B)  Organizes assets and liabilities into important subgroups 
C)  Presents revenues, expenses and profit 
D)  Shows operating, investing, and financing activities 
E)  Shows the effect of profit and withdrawals on owner's capital 
A)  Measures a company's ability to pay its bills on time 
B)  Organizes assets and liabilities into important subgroups 
C)  Presents revenues, expenses and profit 
D)  Shows operating, investing, and financing activities 
E)  Shows the effect of profit and withdrawals on owner's capital

Question 15

Internal documents prepared by accountants when organizing the information presented in formal reports to internal and external decision makers are called

Accepted Answer

A)  Adjusting papers 
B)  Statement papers 
C)  Working papers 
D)  Closing papers 
E)  Business papers 
A)  Adjusting papers 
B)  Statement papers 
C)  Working papers 
D)  Closing papers 
E)  Business papers

Question 16

To prepare the balance sheet, all necessary numbers can be found in the balance sheet columns of the work sheet, including ending capital.

Accepted Answer

A) True 
 B)False

Question 17

Reversing entries

Accepted Answer

A)  Are optional 
B)  Are mandatory 
C)  Fix errors in journal entries 
D)  Are required by CRA 
E)  Are not posted to the ledger 
A)  Are optional 
B)  Are mandatory 
C)  Fix errors in journal entries 
D)  Are required by CRA 
E)  Are not posted to the ledger

Question 18

A work sheet is a substitute for the financial statements.

Accepted Answer

A) True 
 B)False

Question 19

A post-closing trial balance shows

Accepted Answer

A)  All ledger accounts with a balance, none of which can be temporary accounts 
B)  All ledger accounts with a balance, none of which can be permanent accounts 
C)  All ledger accounts with a balance, which include some temporary and some permanent accounts 
D)  Only revenue and expense accounts 
E)  Only asset accounts 
A)  All ledger accounts with a balance, none of which can be temporary accounts 
B)  All ledger accounts with a balance, none of which can be permanent accounts 
C)  All ledger accounts with a balance, which include some temporary and some permanent accounts 
D)  Only revenue and expense accounts 
E)  Only asset accounts

Question 20

Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are

Accepted Answer

A)  Financial accounts 
B)  Temporary accounts 
C)  Closing accounts 
D)  Permanent accounts 
E)  Summary accounts 
A)  Financial accounts 
B)  Temporary accounts 
C)  Closing accounts 
D)  Permanent accounts 
E)  Summary accounts

Use the balance sheet you prepared above to calculate the current ratio. Comment on the company's liquidity position

Using the following partial Excel work sheet for Pendulum Service Co., prepare the Income Statement, the Statement of Changes in Equity, and an unclassified Balance Sheet. Assume the owner did not make any investments in the business during the year.

Sharp has current assets of $15,000 and current liabilities of $9,500. Its current ratio is 1.6 to 1.

Long-term investments can include land not currently being used in operations.

Calculate the current ratio in each of the following cases. Current Assets Current Libilities Case 1 \ 60,000 \ 30,000 Case 2 \ 150,000 \ 85,000 Case 3 \ 57,000 \ 53,000 Case 4 \ 130,000 \ 127,000 Case 5 \ 70,000 \ 110,000

Current liabilities include accounts receivable, unearned revenues, and taxes owed.

Financial statements prepared from a work sheet offer more information than if it is not used and statements are just prepared from an adjusted trial balance.

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle.

The eight recurring steps performed each accounting period, starting with recording transactions in the journal and continuing through the post-closing trial balance, is called the

On a work sheet, adjusted balances of revenues and expenses are sorted to the Income Statement columns.

Shown below is Bill Brady Law's adjusted trial balance at the end of its annual accounting period. Prepare the necessary closing entries.

In a sole proprietorship, the Income Summary account is closed to the capital account.

Describe a classified balance sheet.

A classified balance sheet

Internal documents prepared by accountants when organizing the information presented in formal reports to internal and external decision makers are called

To prepare the balance sheet, all necessary numbers can be found in the balance sheet columns of the work sheet, including ending capital.

Reversing entries

A work sheet is a substitute for the financial statements.

A post-closing trial balance shows

Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters

Exam 4: Completing the Accounting Cycle and Classifying Accounts

Use the balance sheet you prepared above to calculate the current ratio. Comment on the company's liquidity position

Using the following partial Excel work sheet for Pendulum Service Co., prepare the Income Statement, the Statement of Changes in Equity, and an unclassified Balance Sheet. Assume the owner did not make any investments in the business during the year.

Sharp has current assets of $15,000 and current liabilities of $9,500. Its current ratio is 1.6 to 1.

Long-term investments can include land not currently being used in operations.

Calculate the current ratio in each of the following cases. Current Assets Current Libilities Case 1 \ 60,000 \ 30,000 Case 2 \ 150,000 \ 85,000 Case 3 \ 57,000 \ 53,000 Case 4 \ 130,000 \ 127,000 Case 5 \ 70,000 \ 110,000

Current liabilities include accounts receivable, unearned revenues, and taxes owed.

Financial statements prepared from a work sheet offer more information than if it is not used and statements are just prepared from an adjusted trial balance.

Current assets and current liabilities are expected to be used up or come due within one year or the company's operating cycle.

The eight recurring steps performed each accounting period, starting with recording transactions in the journal and continuing through the post-closing trial balance, is called the

On a work sheet, adjusted balances of revenues and expenses are sorted to the Income Statement columns.

Shown below is Bill Brady Law's adjusted trial balance at the end of its annual accounting period. Prepare the necessary closing entries.

In a sole proprietorship, the Income Summary account is closed to the capital account.

Describe a classified balance sheet.

A classified balance sheet

Internal documents prepared by accountants when organizing the information presented in formal reports to internal and external decision makers are called

To prepare the balance sheet, all necessary numbers can be found in the balance sheet columns of the work sheet, including ending capital.

Reversing entries

A work sheet is a substitute for the financial statements.

A post-closing trial balance shows

Accounts that are used to describe revenues, expenses, and owner's withdrawals, and are closed at the end of the reporting period, are

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters