Exam 4: Completing the Accounting Cycle

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

The Office Supplies account is a temporary account.

In a classified balance sheet, assets are reported in the order of liquidity and liabilities are listed in the order in which they must be paid.

The following is the adjusted trial balance columns from the worksheet for Picture Perfect Photography. Using the information provided in the worksheet above, prepare an income statement for Picture Perfect Photography.

The formula for computing the current ratio is ________.

Under which of the following categories would Accounts Payable appear?

Refer to the following adjusted trial balance after the first year of operations. Accounts Debit Credit Cash \ 1,900 Accounts Receivable 8,900 Office Supplies 200 Equipment 22,300 Accumulated Depreciation - Equipment \ 2,000 Accounts Payable 1,000 Salaries Payable 850 Unearned Revenue 400 Common Stock 3,600 Dividends 3,000 Service Revenue 55,150 Salaries Expense 23,000 Supplies Expense 2,000 Depreciation Expense- Equipment Total \ 63,000 \ 63,000 What will the balance of the Retained Earnings account be after the closing entries are posted?

Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts?

To make sure that an error was not made in the closing process, compare the Adjusted Trial Balance to the Post-Closing Trial Balance. List the three items that need to be considered in order to complete the step.

If a business has a net loss, the closing entry to close Income Summary would be a debit to Income Summary and a credit to Retained Earnings.

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

The balances of select accounts of Donovan, Inc. as of December 31, 2018 are given below. Debit Credit Building \ 120,000 Cash 9,000 Office Supplies 1,000 Furniture 4,000 Prepaid Insurance 600 Accumulated Depreciation-Furniture \ 2,000 Land 33,000 Accumulated Depreciation-Building 4,000 Accounts Receivable 2,000 What amount of total long-term assets would be shown on the balance sheet at December 31, 2018?

All assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called ________.

The income statement section of the worksheet includes ________.

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

The following is the adjusted trial balance as of December 31, 2019 of Hawkins Dental Lab, Inc.: Accounts Debit Credit Cash \ 14,000 Accounts Receivable 10,000 Prepaid Insurance 9,000 Office Supplies 6,200 Land 25,000 Building 100,000 Accumulated Depreciation-Building \ 42,000 Equipment 120,000 Accumulated Depreciation-Equipment 75,000 Accounts Payable 40,000 Salaries Payable 4,000 Unearned Revenue 5,000 Mortgage Payable 70,000 Common Stock 20,000 Dividends 17,500 Service Revenue 235,000 Salaries Expense 96,000 Depreciation Expense-Building and Equipment 16,300 Supplies Expense 43,000 Insurance Expense 18,500 Utilities Expense 16,000 Total \ 491,500 \ 491,500 Prepare the closing entries. Omit explanation.

The process by which companies produce their financial statements for a specific period is called the ________.

Liquidity is a measure of how quickly an item can be converted to net income.

What is the net result if the amount of net income for the year is less than the amount of the Dividends?

Which of the following accounts' balance is carried forward to the next accounting period?