Question 1

Liquidity refers to the speed with which the assets can be converted to cash.

Accepted Answer

A) True 
 B)False

Question 2

Match the terms with the definitions.
-Refers to the speed with which an asset can be converted to cash.

Accepted Answer

A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity 
A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity

Question 3

Match the terms with the definitions.
-The length of time generally required for a business to buy inventory, sell it, and collect the cash.

Accepted Answer

A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity 
A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity

Question 4

A formal statement of the assets, liabilities, and owner's equity of a business at a specified date is known as a(n)

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  statement of profits and losses. 
D)  statement of earnings. 
A)  balance sheet. 
B)  income statement. 
C)  statement of profits and losses. 
D)  statement of earnings.

Question 5

Match the terms with the definitions.
-Those obligations that will extend beyond one year or the normal operating cycle, whichever is longer.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 6

Match the terms with the definitions.
-The number of days in the year divided by the accounts receivable turnover.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 7

Match the terms with the definitions.
-Cost of plant and equipment less the accumulated depreciation amounts.

Accepted Answer

A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity 
A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity

Question 8

Match the terms with the definitions.
-Those expenses associated with administrative or office operating expenses.

Accepted Answer

A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity 
A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity

Question 9

Assets that are used in the operation of a business are called temporary investments.

Accepted Answer

A) True 
 B)False

Question 10

Match the terms with the definitions.
-The opposite of the adjusting entry. It is made on the first day of the next accounting period and simplifies recording transactions in the new period.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 11

Undepreciated cost is the same as the book value of an asset.

Accepted Answer

A) True 
 B)False

Question 12

If inventory is taken only at the end of each accounting period, the average inventory for the period can be calculated by adding the beginning and the ending inventories and dividing their sum by two.

Accepted Answer

A) True 
 B)False

Question 13

Match the terms with the definitions.
-The number of times the accounts receivable turned over, or were collected, during the accounting period.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 14

Current liabilities are those obligations that are due within one year or the normal operating cycle of the business, whichever is longer, and which will require no use of current assets.

Accepted Answer

A) True 
 B)False

Question 15

The purpose of the post-closing trial balance is to prove that the general ledger is in balance at the beginning of the new accounting period.

Accepted Answer

A) True 
 B)False

Question 16

A quick ratio of 1.5 to 1 indicates that quick assets are more than adequate to meet current obligations.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of an income statement is to provide information on the status of a business at a specified date.

Accepted Answer

A) True 
 B)False

Question 18

Inventory turnover is determined by dividing cost of goods sold for the period by the average inventory.

Accepted Answer

A) True 
 B)False

Question 19

Current assets are listed on the balance sheet from the most liquid to least liquid.

Accepted Answer

A) True 
 B)False

Question 20

The ability of a business to meet its current obligations may be determined by the

Accepted Answer

A)  current ratio. 
B)  inventory turnover. 
C)  working ratio. 
D)  accounts receivable turnover. 
A)  current ratio. 
B)  inventory turnover. 
C)  working ratio. 
D)  accounts receivable turnover.

Liquidity refers to the speed with which the assets can be converted to cash.

Match the terms with the definitions. -Refers to the speed with which an asset can be converted to cash.

Match the terms with the definitions. -The length of time generally required for a business to buy inventory, sell it, and collect the cash.

A formal statement of the assets, liabilities, and owner's equity of a business at a specified date is known as a(n)

Match the terms with the definitions. -Those obligations that will extend beyond one year or the normal operating cycle, whichever is longer.

Match the terms with the definitions. -The number of days in the year divided by the accounts receivable turnover.

Match the terms with the definitions. -Cost of plant and equipment less the accumulated depreciation amounts.

Match the terms with the definitions. -Those expenses associated with administrative or office operating expenses.

Assets that are used in the operation of a business are called temporary investments.

Match the terms with the definitions. -The opposite of the adjusting entry. It is made on the first day of the next accounting period and simplifies recording transactions in the new period.

Undepreciated cost is the same as the book value of an asset.

If inventory is taken only at the end of each accounting period, the average inventory for the period can be calculated by adding the beginning and the ending inventories and dividing their sum by two.

Match the terms with the definitions. -The number of times the accounts receivable turned over, or were collected, during the accounting period.

Current liabilities are those obligations that are due within one year or the normal operating cycle of the business, whichever is longer, and which will require no use of current assets.

The purpose of the post-closing trial balance is to prove that the general ledger is in balance at the beginning of the new accounting period.

A quick ratio of 1.5 to 1 indicates that quick assets are more than adequate to meet current obligations.

The purpose of an income statement is to provide information on the status of a business at a specified date.

Inventory turnover is determined by dividing cost of goods sold for the period by the average inventory.

Current assets are listed on the balance sheet from the most liquid to least liquid.

The ability of a business to meet its current obligations may be determined by the

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters

Exam 15: Financial Statements and Year-End Accounting for a Merchandising Business

Liquidity refers to the speed with which the assets can be converted to cash.

Match the terms with the definitions. -Refers to the speed with which an asset can be converted to cash.

Match the terms with the definitions. -The length of time generally required for a business to buy inventory, sell it, and collect the cash.

A formal statement of the assets, liabilities, and owner's equity of a business at a specified date is known as a(n)

Match the terms with the definitions. -Those obligations that will extend beyond one year or the normal operating cycle, whichever is longer.

Match the terms with the definitions. -The number of days in the year divided by the accounts receivable turnover.

Match the terms with the definitions. -Cost of plant and equipment less the accumulated depreciation amounts.

Match the terms with the definitions. -Those expenses associated with administrative or office operating expenses.

Assets that are used in the operation of a business are called temporary investments.

Match the terms with the definitions. -The opposite of the adjusting entry. It is made on the first day of the next accounting period and simplifies recording transactions in the new period.

Undepreciated cost is the same as the book value of an asset.

If inventory is taken only at the end of each accounting period, the average inventory for the period can be calculated by adding the beginning and the ending inventories and dividing their sum by two.

Match the terms with the definitions. -The number of times the accounts receivable turned over, or were collected, during the accounting period.

Current liabilities are those obligations that are due within one year or the normal operating cycle of the business, whichever is longer, and which will require no use of current assets.

The purpose of the post-closing trial balance is to prove that the general ledger is in balance at the beginning of the new accounting period.

A quick ratio of 1.5 to 1 indicates that quick assets are more than adequate to meet current obligations.

The purpose of an income statement is to provide information on the status of a business at a specified date.

Inventory turnover is determined by dividing cost of goods sold for the period by the average inventory.

Current assets are listed on the balance sheet from the most liquid to least liquid.

The ability of a business to meet its current obligations may be determined by the

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters