Exam 4: Completing the Accounting Cycle

A company has $100,000 in current assets; $600,000 in total assets; $80,000 in current liabilities, and $120,000 in total liabilities. Calculate the current ratio of the company. (Round your answer to two decimals.)

A reversing entry ________.

The following is the adjusted trial balance for Becker Photography. After the closing entries, what will the final balance in R. Becker, Capital be?

The adjusted trial balance of Shutterbug Photography at December 31, 2017 is as follows: Using the information above, prepare a post-closing trial balance for Shutterbug Photography (dated December 31, 2017).

Prepaid Rent in the worksheet's unadjusted trial balance column is $6,000. Prepaid Rent in the balance sheet column is $5,000. Which of the following entries would have caused this difference?

The current ratio is calculated using the values from the income statement.

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Which of the following would be considered the weakest current ratio?

The operating cycle is the process by which companies produce their financial statements for a specific period.

Swan Song's adjusted trial balance as of December 31, 2016 is given below: Compute the current ratio. (Round your answer to two decimals.)

Regarding a classified balance sheet, which of the following statements is correct?

The Accounts Receivable account is a permanent account.

At the beginning of the year, the total owner's equity of Alpha Technologies was $90,000. The revenues and expenses were $80,000 and $40,000, respectively. The owner did not make and contributions or withdrawals during the year. The total owner's equity at the end of the year will amount to $120,000.

The Accounts Payable account is a temporary account.

Which of the following is a current asset that is expected to be converted to cash, sold, or consumed during the next year (or the normal operating cycle, if longer)?

Property, plant, and equipment are categorized as ________.

Ellis Service Company had the following unadjusted balances at December 31, 2016: Salaries Payable, $0; Salaries Expense, $12,000. The following transactions took place on December 31, 2016: Accrued Salaries Expense, $5,000 Closed the Salaries Expense account. The following transaction took place on January 4, 2017: Paid salaries of $6,000. This payment included $5,000 that was accrued on December 31, 2016 and $1,000 for the first few days in January 2017. Prepare the journal entry for January 4, 2017, assuming that reversing entries were not made.

A reversing entry is ________.

Buildings, land, and equipment are classified as ________.

As a part of the closing process, revenues and expenses may be closed to a temporary account called the Net Income (Loss) account.