Exam 4: Completing the Accounting Cycle

Which of the following is a plant asset?

The operating cycle is the time span required for a business to repay its long-term liabilities.

Liquidity is a measure of how ________.

The time span during which cash is paid for goods and services, which are then sold to customers from whom the business collects cash, is called the ________.

Which of the following accounts would appear in the balance sheet debit column?

The beginning balance in the Owner, Capital account of Cedar Technologies was $86,000. The revenues and expenses amounted to $55,000 and $43,000, respectively. During the year, the owner did not make any additional contributions or withdrawals. The balance of the Owner, Capital account will be $141,000 at the end of the year.

List the steps of the accounting cycle that take place during the period.

Patents, copyrights, and trademarks are examples of ________.

Dogwood Company earned revenues of $19,000 and incurred expenses of $7,000. The owner made withdrawals of $3,500. What is the balance in the Income Summary account prior to closing net income or loss to the Owner, Capital account?

Which of the following statements is true of the accounting cycle?

Which of the following is an example of an intangible asset?

Prepaid Rent is always classified as a long-term asset.

Which of the following accounts has a balance equal to net income immediately before it is closed?

An account that is not closed at the end of the period is called a(n) ________.

Calculate the current ratio using the following information: (Round your answer to two decimals.)

The Cash account is a temporary account.

Reversing entries are ________.

Which of the following accounts would appear in the income statement credit column?

The smaller the current ratio, the higher the firm's ability to repay its current debts.

In an accounting cycle, an analysis of transactions is performed at the end of each accounting period.