Question 1

The current ratio measures a company's ________.

Accepted Answer

A) overall ability to pay liabilities 
B) ability to pay current liabilities with current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow 
A) overall ability to pay liabilities 
B) ability to pay current liabilities with current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow

Question 2

The balances of select accounts of Sandra Inc.as of December 31,2015 are given below:   The unearned revenue is the amount of cash received for services to be rendered in January,2016.
-What are the total long-term liabilities shown on the balance sheet?

Accepted Answer

A) $1,200 
B) $4,000 
C) $5,200 
D) $25,000 
A) $1,200 
B) $4,000 
C) $5,200 
D) $25,000

Question 3

Closing journal entries are posted ________.

Accepted Answer

A) throughout the accounting period 
B) before posting the adjusting entries 
C) after preparing the post-closing trial balance 
D) after preparing the financial statements 
A) throughout the accounting period 
B) before posting the adjusting entries 
C) after preparing the post-closing trial balance 
D) after preparing the financial statements

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

On December 31,2014,Axle Services Inc.prepared the following accrual adjustment:
   Axle uses reversing entries.Prepare the reversing entry that would be prepared on January 1,2015.

Accepted Answer

The answer of On December 31,2014,Axle Services Inc.prepared the following...

Question 6

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

Accepted Answer

A) 0.35 
B) 1.10 
C) 1.25 
D) 1.80 
A) 0.35 
B) 1.10 
C) 1.25 
D) 1.80

Question 7

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

Accepted Answer

A) Unearned service revenue 
B) Service Revenue 
C) Depreciation Expense 
D) Prepaid Insurance 
A) Unearned service revenue 
B) Service Revenue 
C) Depreciation Expense 
D) Prepaid Insurance

Question 8

In the closing process,the Dividends account is closed to the Retained Earnings account.

Accepted Answer

A) True 
 B)False

Question 9

A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders' equity below.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a measure of how quickly an item can be converted to cash?

Accepted Answer

A) debt ratio 
B) current ratio 
C) liquidity 
D) accounting cycle 
A) debt ratio 
B) current ratio 
C) liquidity 
D) accounting cycle

Question 11

Under which of the following categories would Accounts Receivable appear?

Accepted Answer

A) current assets 
B) current liabilities 
C) long-term assets 
D) long-term liabilities 
A) current assets 
B) current liabilities 
C) long-term assets 
D) long-term liabilities

Question 12

The Service Revenue account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the most liquid asset?

Accepted Answer

A) Building 
B) Prepaid Expenses 
C) Accounts Receivable 
D) Cash 
A) Building 
B) Prepaid Expenses 
C) Accounts Receivable 
D) Cash

Question 14

The Dividends account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 15

Clear Cleaning Services pays out wages every week on Friday.Payroll expense totals $4,000 per week,based on a 5-day week.The month of June ended on a Thursday.On Thursday,June 30,Clear made the following accrual adjustment:
   At the same time,they prepared the following reversing entry to be booked on July 1:
   On Friday afternoon,when wages were paid out,what journal entry was made?

Accepted Answer

The answer of Clear Cleaning Services pays out wages every...

Question 16

A list of the accounts and their balances at the end of the period after journalizing and posting the closing entries and includes only permanent accounts is called ________.

Accepted Answer

A) chart of accounts 
B) adjusted trial balance 
C) post-closing trial balance 
D) pre-closing balance sheet 
A) chart of accounts 
B) adjusted trial balance 
C) post-closing trial balance 
D) pre-closing balance sheet

Question 17

Which of the following is a permanent account?

Accepted Answer

A) Wages Expense 
B) Salary Payable 
C) Service Revenue 
D) Utilities Expense 
A) Wages Expense 
B) Salary Payable 
C) Service Revenue 
D) Utilities Expense

Question 18

The current ratio measures ________.

Accepted Answer

A) a company's ability to sell its long-term assets. 
B) a company's ability to pay current liabilities with its total assets 
C) a company's ability to pay current liabilities with current assets 
D) a company's profitability during a particular period 
A) a company's ability to sell its long-term assets. 
B) a company's ability to pay current liabilities with its total assets 
C) a company's ability to pay current liabilities with current assets 
D) a company's profitability during a particular period

Question 19

Salaries Payable,Interest Payable,and Unearned Revenue are examples of ________.

Accepted Answer

A) short-term investments 
B) fixed assets 
C) current liabilities 
D) long-term liabilities 
A) short-term investments 
B) fixed assets 
C) current liabilities 
D) long-term liabilities

Question 20

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

The current ratio measures a company's ________.

The balances of select accounts of Sandra Inc.as of December 31,2015 are given below: The unearned revenue is the amount of cash received for services to be rendered in January,2016. -What are the total long-term liabilities shown on the balance sheet?

Closing journal entries are posted ________.

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

On December 31,2014,Axle Services Inc.prepared the following accrual adjustment: Axle uses reversing entries.Prepare the reversing entry that would be prepared on January 1,2015.

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

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

In the closing process,the Dividends account is closed to the Retained Earnings account.

A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders' equity below.

Which of the following is a measure of how quickly an item can be converted to cash?

Under which of the following categories would Accounts Receivable appear?

The Service Revenue account is a permanent account.

Which of the following is the most liquid asset?

The Dividends account is a permanent account.

A list of the accounts and their balances at the end of the period after journalizing and posting the closing entries and includes only permanent accounts is called ________.

Which of the following is a permanent account?

The current ratio measures ________.

Salaries Payable,Interest Payable,and Unearned Revenue are examples of ________.

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Accounting Information Systems

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