Exam 4: Completing the Accounting Cycle

Assets are listed in the order of their ________ on the balance sheet.

Notes Payable due within two years are classified as ________.

Intangible assets are long-term assets that have no physical form and convey special rights.

Liquidity is a measure of how ________.

The beginning balance in the Retained Earnings account of a company was $11,000. The revenues and expenses were $240,000 and $160,000, respectively. During the year, the company paid dividends of $6,000. The ending balance in Retained Earnings was $91,000.

If a business has a net loss, the Income Summary T account would hold a debit balance before the account is closed.

The smaller the current ratio, the higher the firm's ability to repay its current debts.

Which of the following accounts has an ending balance equal to net income immediately before it is closed?

A net loss from the balance sheet decreases Retained Earnings.

When a business uses a computerized accounting system, the software automatically closes the books.

The Salaries Payable account is a permanent account.

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

Which of the following is true of a completed worksheet?

The current ratio shows the profitability of a firm.

Reversing entries are used in conjunction with ________.

The following is the adjusted trial balance as of December 31, 2019 of Barone Brothers, 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 expenses. Omit explanation.

The adjusted trial balance of Williams Landscaping at December 31, 2019 is as follows: Accounts Debit Credit Cash \ 15,000 Accounts Receivable 30,000 Repaid Insurance 7,500 Supplies 3,200 Land 40,000 Building 160,000 Accumulated Depreciation-Building \ 12,000 Equipment 75,000 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 23,000 Service Revenue 289,000 Salaries Expense 61,000 Depreciation Expense-Building and Equipment 6,150 Supplies Expense 14,040 Insturance Expense 14,000 Utilities Expense 20,900 Total \ 469,790 Using the information above, prepare a post-closing trial balance for Williams Landscaping (dated December 31, 2019).

A balance sheet prepared in the report form lists the assets on the left and the liabilities and stockholders' equity on the right.

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

The Interest Expense in the worksheet's unadjusted trial balance column is $1,000. Interest Expense in the income statement column is $12,000. Which of the following entries would have caused this difference?