Question 1

When closing the Withdrawals account

Accepted Answer

A) Liability account should be credited. 
B) The owners' capital account should be debited. 
C) The owners' capital account should be credited. 
D) The income summary account should be debited. 
E) The income summary account should be credited. 
A) Liability account should be credited. 
B) The owners' capital account should be debited. 
C) The owners' capital account should be credited. 
D) The income summary account should be debited. 
E) The income summary account should be credited.

Question 2

If, in preparing a work sheet, an adjusted trial balance amount is sorted to the wrong work sheet column, the Balance Sheet columns will balance on completing the work sheet, but with the wrong profit, if the amount sorted in error is:

Accepted Answer

A) A liability amount entered in the Income Statement Credit column. 
B) A revenue amount entered in the Balance Sheet Debit column. 
C) An asset amount entered in the Balance Sheet Credit column. 
D) A liability amount entered in the Balance Sheet Debit column. 
E) An expense amount entered in the Balance Sheet Credit column. 
A) A liability amount entered in the Income Statement Credit column. 
B) A revenue amount entered in the Balance Sheet Debit column. 
C) An asset amount entered in the Balance Sheet Credit column. 
D) A liability amount entered in the Balance Sheet Debit column. 
E) An expense amount entered in the Balance Sheet Credit column.

Question 3

The current ratio

Accepted Answer

A) Measures the effect of operating income on profit. 
B) Is used to measure a company's profitability. 
C) Is used to measure the relationship between assets and long-term debt. 
D) Only relates to noncurrent liabilities. 
E) Is used to evaluate a company's ability to pay its short-term obligations. 
A) Measures the effect of operating income on profit. 
B) Is used to measure a company's profitability. 
C) Is used to measure the relationship between assets and long-term debt. 
D) Only relates to noncurrent liabilities. 
E) Is used to evaluate a company's ability to pay its short-term obligations.

When closing the Withdrawals account

If, in preparing a work sheet, an adjusted trial balance amount is sorted to the wrong work sheet column, the Balance Sheet columns will balance on completing the work sheet, but with the wrong profit, if the amount sorted in error is:

The current ratio

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

Filters

Exam 4: Completing the Accounting Cycle and Classifying Accounts

When closing the Withdrawals account

If, in preparing a work sheet, an adjusted trial balance amount is sorted to the wrong work sheet column, the Balance Sheet columns will balance on completing the work sheet, but with the wrong profit, if the amount sorted in error is:

The current ratio

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

Filters