Exam 4: Completing the Accounting Cycle

The closing process helps in measuring each period's net income separately from all other periods.

The balances of select accounts of Sandra Inc.as of December 31,2015 are given below: -The insurance has been prepaid for the next half year.Determine the amount of total current assets reported on the balance sheet.

The Office Supplies Expense account is a temporary account.

Reversing entries are dated on the first day of the new accounting period.

The beginning balance in the Common Stock account of a company was $10,000.The revenues and expenses were $200,000 and $120,000,respectively.During the year,the company declared and paid dividends for $4,000.The ending balance in the Retained Earnings was $76,000.(Assume that the opening balance of Retained Earnings was zero.)

The Salaries Expense account is a temporary account.

Which of the following statements is an accurate interpretation of the current ratio?

Which of the following accounts will be included in a post-closing trial balance?

The post-closing trial balance shows the updated Retained Earnings balance.

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

The Office Supplies account is a temporary account.

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

Which of the following are NOT included in a post-closing trial balance?

Liquidity is a measure of how ________.

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

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

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

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

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

An increase in the current ratio implies that the profitability of the company has increased from the previous period.