Exam 4: Completing the Accounting Cycle

Which of the following statements is true of the worksheet?

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)?

The following is the adjusted trial balance as of December 31, 2019 of Martin Security Services, Inc.: Accounts Debit Credit Cash \ 18,000 Accounts Receivable 30,000 Prepaid Instrance 9,000 Office Supplies 3,200 Land 45,000 Building 165,000 Accumulated Depreciation-Building \ 12,000 Equipment 88,000 Accumulated Depreciation-Equipment 8,500 Accounts Payable 12,000 Salaries Payable 2,000 Unearned Revenue 25,000 Mortgage Payable 100,000 Common Stock 21,290 Dividends 25,840 Service Revenue 325,000 Salaries Expense 63,000 Depreciation Expense-Building and Equipment 6,250 Supplies Expense 15,000 Insurance Expense 14,500 Utilities Expense 23,000 Total \ 505,790 \ 505,790 Prepare the closing entry for revenues. Omit explanation.

Calculate the current ratio using the following information: (Round your answer to two decimal places.) Cash \ 5,000 Accounts Receivable 1,100 Prepaid Rent 1,000 Land 40,000 Equipment 4,000 Accumulated Depreciation 1,200 Accounts Payable 3,000 Salaries Payable 900 Notes Payable-long term 9,000

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

A reversing entry is ________.

Olsteen, Inc., earned revenues of $65,000 and incurred expenses of $73,000. No dividends were declared. Which of the following statements is correct?

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

Pioneer's adjusted trial balance as of December 31, 2018 is given below: Compute the current ratio. (Round your answer to two decimal places.)

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

Closing entries are journalized and posted ________.

The following contains information from the records of Bourne Engineers and Architects. Boume Engineers and Architects Selected Financial Information December 31,2019 Current Assets \ 80,000 Current Liabilities 42,000 Long-Term Assets 98,000 Long-Term Liabilities 65,000 Total Revenues 55,000 Total Expenses 32,000 Calculate the current ratio. (Round your answer to two decimal places.)

Jackson Services, Inc. earned revenues of $109,000, incurred expenses of $110,000, and paid dividends of $5,000. Which of the following statements is correct?

The following contains information from the records of the Becker Architecture Firm. Becker Architecture Firm Selected Financial Information December 31,2019 Current Assets \ 90,000 Current Liabilities 30,000 Long-Term Assets 99,000 Long-Term Liabilities 60,000 Total Revenues 55,000 Total Expenses 37,000 Which of the following statements is an accurate interpretation of the current ratio of the Becker Architecture Firm? (Round your answer to two decimal places.)

At the beginning of the year, the total stockholders' equity of Cutting Edge Technologies, Inc. was $80,000. The revenues and expenses were $70,000 and $30,000, respectively. The company did not declare dividends. No common stock was issued during the year. The total stockholders' equity at the end of the year will amount to $110,000.

Martinville, Inc. earned revenues of $18,000 and incurred expenses of $4,000. The company declared and paid cash dividends of $3,500. What is the balance in the Income Summary account prior to closing net income or loss to the Retained Earnings account?

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

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

The accounts from the Adjusted Trial Balance are listed in alphabetical order. Use this information for Lawrence Service Company to prepare the classified balance sheet at September 30, 2018. Use the report form. You must compute the ending balance of Retained Earnings.

The ten steps of the accounting cycle are presented below. Identify the correct order of the steps by placing the numbers 1 (first step) to 10 (last step) by each description. ______ Start with beginning account balances.