A) Helps to assess a company's ability to pay its debts in the near future. B) Is current assets divided by current liabilities. C) Is a measure of a company's liquidity. D) Suggests there may be problems in a business if it is less than 1. E) All of these answers are correct. A) Helps to assess a company's ability to pay its debts in the near future. B) Is current assets divided by current liabilities. C) Is a measure of a company's liquidity. D) Suggests there may be problems in a business if it is less than 1. E) All of these answers are correct.

A) Are listed in order of liquidity. B) Are due to be settled after one year or the operating cycle. C) Are due to be settled within the shorter of one year or the operating cycle. D) Are closed at the end of the accounting period to current assets. E) Are listed in the order in which they are to be paid, with the first one listed to be paid first. A) Are listed in order of liquidity. B) Are due to be settled after one year or the operating cycle. C) Are due to be settled within the shorter of one year or the operating cycle. D) Are closed at the end of the accounting period to current assets. E) Are listed in the order in which they are to be paid, with the first one listed to be paid first.

Exam 4: Completing the Accounting Cycle and Classifying Accounts

Accounts that are used to describe assets, liabilities, and equity, that are not closed aslong as the company continues to own the assets, owe the liabilities, or have equity, and whose balances appear on the balance sheet are called:

(Multiple Choice)

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Question 21

A post-closing trial balance shows

(Multiple Choice)

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Question 22

Which of the following statements is incorrect? 66)

(Multiple Choice)

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Question 23

A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjustingentries, adjusted trial balance, and financial statements, and which is an optional step in the accounting process, is a(n):

(Multiple Choice)

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Question 24

Using the information from Lucie Accounting (Ref 4-137), calculate the currentratio.

(Essay)

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Question 25

Which of the following statements is incorrect? 76)

(Multiple Choice)

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Question 26

Explain the purpose of closing entries and describe the closing process

(Essay)

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Question 27

(A)In a sole proprietorship, Income Summary is closed to what account? (B)In following the steps of the accounting cycle, what two steps must be done before preparation of an unadjusted trial balance?

(Essay)

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Question 28

The normal order for the asset section of a classified balance sheet is

(Multiple Choice)

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Question 29

The current ratio

(Multiple Choice)

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Question 30

Describe a work sheet and explain why it is useful

(Essay)

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Question 31

The Unadjusted Trial Balance columns of the work sheet show the balance in the Office Supplies account at $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns is:

(Multiple Choice)

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Question 32

Accumulated Depreciation, Equipment, Accounts Receivable, and Service Revenue would be sorted to which respective columns in completing a work sheet?

(Multiple Choice)

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Question 33

A company shows an $800 balance in Prepaid Insurance in the Unadjusted TrialBalance columns of the work sheet. The Adjustments columns show expired insurance of $600. This adjusting entry results in:

(Multiple Choice)

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Question 34

The Income Summary account is used

(Multiple Choice)

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Question 35

Current Liabilities

(Multiple Choice)

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Question 36

Explain the purpose of reversing entries

(Essay)

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Question 37

Emilia Feridy, the proprietor of EF Services, withdrew a total of $50 to pay for herdaughter's swimming lessons. What is the entry needed to record this transaction?

(Multiple Choice)

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Question 38

Which of the following is the final step in the accounting cycle?

(Multiple Choice)

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Question 39

Which statement is true about liquidity? Prepaid Rent is

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Question 40

Showing 21 - 40 of 63

Accounts that are used to describe assets, liabilities, and equity, that are not closed aslong as the company continues to own the assets, owe the liabilities, or have equity, and whose balances appear on the balance sheet are called:

A post-closing trial balance shows

Which of the following statements is incorrect? 66)

A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjustingentries, adjusted trial balance, and financial statements, and which is an optional step in the accounting process, is a(n):

Using the information from Lucie Accounting (Ref 4-137), calculate the currentratio.

Which of the following statements is incorrect? 76)

Explain the purpose of closing entries and describe the closing process

(A)In a sole proprietorship, Income Summary is closed to what account? (B)In following the steps of the accounting cycle, what two steps must be done before preparation of an unadjusted trial balance?

The normal order for the asset section of a classified balance sheet is

The current ratio

Describe a work sheet and explain why it is useful

The Unadjusted Trial Balance columns of the work sheet show the balance in the Office Supplies account at $750. The Adjustments columns show that $425 of these supplies were used during the period. The amount shown as Office Supplies in the Balance Sheet columns is:

Accumulated Depreciation, Equipment, Accounts Receivable, and Service Revenue would be sorted to which respective columns in completing a work sheet?

A company shows an $800 balance in Prepaid Insurance in the Unadjusted TrialBalance columns of the work sheet. The Adjustments columns show expired insurance of $600. This adjusting entry results in:

The Income Summary account is used

Current Liabilities

Explain the purpose of reversing entries

Emilia Feridy, the proprietor of EF Services, withdrew a total of $50 to pay for herdaughter's swimming lessons. What is the entry needed to record this transaction?

Which of the following is the final step in the accounting cycle?

Which statement is true about liquidity? Prepaid Rent is

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

Appendix

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