Exam 4: Completing the Accounting Cycle

The beginning balance in the Capital account of a company was $10,000. The revenues and expenses were $200,000 and $120,000, respectively. The owner withdrew $4,000 during the year. The ending balance in the Capital account was $86,000.

Swan Song's adjusted trial balance as of December 31, 2014 is given below: Compute the current ratio.

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Reversing entries ease the burden of accounting for transactions in a later period.

To which of the following accounts should the balance in the Income Summary account be closed?

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

The Salaries Payable account is a permanent account.

In the last step of the closing process, the Owner's Name, Withdrawals account is closed to the Owner's Name, Capital account.

The formula for computing the current ratio is:

The assets which do not have a physical form are called:

Net income (loss) is the difference between the total debits and the total credits in the income statement columns of the worksheet.

The following contains information from the records of the Wellborn Engineers and Architects. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Wellborn Engineers and Architects $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Selected Financial Information $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ December 31, 2015 Current Assets \ 74,000 Current Liabilities 44,000 Long-term Assets 95,000 Long-term Liabilities 60,000 Total Revenues 50,000 Total Expenses 30,000 Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

The adjusted trial balance of Michael's Shutterbug Photography at December 31, 2015 is as follows: Using the information above, prepare a post-closing trial balance for Shutterbug Photography (dated December 31, 2015.)

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

Revenues and expenses are transferred to the ________ account before their final transfer into the Owner's Name, Capital account.

A balance sheet that lists the assets above the liabilities and owner's equity sections is a(n):

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: Notes Payable-short term \ 1,200 Salaries Payable 4,000 Notes Payable-long term 25,000 Accounts Payable 3,200 Unearned Revenue 2,000 Interest Payable 2,500 -Refer to the table above.The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total current liabilities shown on the balance sheet?

The financial statements are prepared from the:

In which of the columns of the worksheet would a net loss be found?