Exam 4: Completing the Accounting Cycle

Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year, are called ________ assets.

Which of the following is a permanent account?

The following is the adjusted trial balance as of December 31, 2016 of Aims Photography: Provide the closing entry for expenses.

Asset and liability accounts are closed to the Income Summary account.

Notes Payable due within two years are classified as ________.

Refer to the following adjusted trial balance. What will the final ending balance in the Owner, Capital account be after posting the closing entries?

In a balance sheet, assets are classified as either current or long term, depending on their liquidity.

In the worksheet, the adjusted balance of the Service Revenue account appears in the credit column of the income statement.

Reversing entries are special journal entries that ease the burden of accounting for transactions in a later period.

Which of the following entries is necessary to close the appropriate depreciation account at the end of the year?

Dyer 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 entries for January 1, 2017 and January 4, 2017, assuming that reversing entries were made.

Which of the following accounts will be closed by debiting the Income Summary account?

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

The current ratio measures a company's ________.

The current ratio measures ________.

Which of the following steps must be completed before preparing the adjusted trial balance?

The Owner, Withdrawals account is a permanent account.

Only permanent accounts appear on the post-closing trial balance.

The following is the adjusted trial balance as of December 31, 2017 of Current Times Watch Co.: Provide the closing entry for the Income Summary account.

A balance sheet that lists the assets above the liabilities and stockholders' equity sections is a(n) ________ balance sheet.