Question 1

The current ratio is determined by subtracting current liabilities from current assets.

Accepted Answer

A) True 
 B)False

Question 2

Current liabilities include those obligations that will extend beyond one year or the normal operating cycle, whichever is longer.

Accepted Answer

A) True 
 B)False

Question 3

Match the terms with the definitions.
-Compares the relationship between certain amounts in the income statement and balance sheet.

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 4

Current assets include cash and all other assets that may be reasonably expected to be converted into cash or consumed within one year or the normal operating cycle of the business, whichever is longer.

Accepted Answer

A) True 
 B)False

Question 5

Entries required at the end of an accounting period to bring certain account balances up-to-date are known as closing entries.

Accepted Answer

A) True 
 B)False

Question 6

Working capital is the difference between current assets and current liabilities.

Accepted Answer

A) True 
 B)False

The current ratio is determined by subtracting current liabilities from current assets.

Current liabilities include those obligations that will extend beyond one year or the normal operating cycle, whichever is longer.

Match the terms with the definitions. -Compares the relationship between certain amounts in the income statement and balance sheet.

Current assets include cash and all other assets that may be reasonably expected to be converted into cash or consumed within one year or the normal operating cycle of the business, whichever is longer.

Entries required at the end of an accounting period to bring certain account balances up-to-date are known as closing entries.

Working capital is the difference between current assets and current liabilities.

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

The current ratio is determined by subtracting current liabilities from current assets.

Current liabilities include those obligations that will extend beyond one year or the normal operating cycle, whichever is longer.

Match the terms with the definitions. -Compares the relationship between certain amounts in the income statement and balance sheet.

Current assets include cash and all other assets that may be reasonably expected to be converted into cash or consumed within one year or the normal operating cycle of the business, whichever is longer.

Entries required at the end of an accounting period to bring certain account balances up-to-date are known as closing entries.

Working capital is the difference between current assets and current liabilities.

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