The following contains information from the records of the Balfor Architecture Firm $\begin{array}{c} \text {Balfor Architecture Firm}\\ \text {Selected Financial Informatior}\\ \text {December 31, 2017}\\ \begin{array}{|l|r|} \hline\text { Current Assets } & \$ 80,000 \\ \hline \text { Current Liabilities } & 42,000 \\ \hline \text { Long-Term Assets } & 95,000 \\ \hline \text { Long-Term Liabilities } & 60,000 \\ \hline \text { Total Revenues } & 50,000 \\ \hline \text { Total Expenses } & 30,000\\ \hline \end{array} \end{array}$ Which of the following statements is an accurate interpretation of the current ratio of Balfor Architecture Firm? (Round your answer to two decimals. )

A) The company has $2.42 of current assets for every $1.00 of liabilities. B) The company has $1.90 of current assets for every $1.00 of current liabilities. C) The company has $1.58 of current assets for every $1.00 of liabilities. D) The company has $0.62 of current assets for every $1.00 of current liabilities. A) The company has $2.42 of current assets for every $1.00 of liabilities. B) The company has $1.90 of current assets for every $1.00 of current liabilities. C) The company has $1.58 of current assets for every $1.00 of liabilities. D) The company has $0.62 of current assets for every $1.00 of current liabilities.

Exam 4: Completing the Accounting Cycle

Dyer Service Company had the following unadjusted balances at December 31,2016: Salaries Payable,$0; Salaries Expense,$12,000.The following transactions took place on December 31,2016: Accrued Salaries Expense,$5,000 Closed the Salaries Expense account. The following transaction took place on January 4,2017: Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2016 and $1,000 for the first few days in January 2017. Prepare the journal entries for January 1,2017 and January 4,2017,assuming that reversing entries were made.

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Question 1

Correct Answer:

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$\begin{array} { | l | r | r | } \hline 1 / 1 / 17 & & \\\text { Salaries Payable } & 5,000 & \\\hline \text { Salaries Expense } & & 5,000 \\\hline\end{array}$ $\begin{array} { | l | l | l | } \hline 1 / 4 / 17 & & \\\text { Salaries Expense } & 6,000 & \\\hline \text { Cash } & & 6,000 \\\hline\end{array}$

Only permanent accounts appear on the post-closing trial balance.

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(True/False)

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Question 2

Correct Answer:

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True

The following is the adjusted trial balance as of December 31,2016 of Aims Photography: Account Debit Credit Cash \ 1,700 Accounts Receivable 8,500 Supplies 100 Equipment 7,50 Accumulated Depreciation-Equipment \ 2,000 Accounts Payable 1,200 Salaries Payable 800 Unearned Revenue 600 Common Stock 3,400 Dividends 2,300 Service Revenue 40,000 Salaries Expense 24,000 Supplies Expense 2,300 Depreciation Expense-Equipment 1,600 Total \ 448,000 Provide the closing entry for expenses.

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Question 3

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$\begin{array} { | l | r | r | } \hline \text { Income Summary } & 27,900 & \\\hline \text { Salaries Expense } & & 24,000 \\\hline \text { Supplies Expense } & & 2,300 \\\hline \text { Depreciation Expense - Equipment } & & 1,600 \\\hline\end{array}$

The post-closing trial balance shows the net income for the period just ended.

(True/False)

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Question 4

A reversing entry is ________.

(Multiple Choice)

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Question 5

The following contains information from the records of the Balfor Architecture Firm Balfor Architecture Firm Selected Financial Informatior December 31, 2017 Current Assets \ 80,000 Current Liabilities 42,000 Long-Term Assets 95,000 Long-Term Liabilities 60,000 Total Revenues 50,000 Total Expenses 30,000 Which of the following statements is an accurate interpretation of the current ratio of Balfor Architecture Firm? (Round your answer to two decimals. )

(Multiple Choice)

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Question 6

Which of the following statements is true of the worksheet?

(Multiple Choice)

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Question 7

In a balance sheet,assets are classified as either current or long term,depending on their liquidity.

(True/False)

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Question 8

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

(True/False)

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Question 9

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

(Multiple Choice)

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Question 10

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

(Multiple Choice)

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Question 11

The Cash account is a temporary account.

(True/False)

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Question 12

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

(Multiple Choice)

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Question 13

The adjusted trial balance of Shutterbug Photography at December 31,2017 is as follows: Using the information above,prepare a post-closing trial balance for Shutterbug Photography (dated December 31,2017).

(Essay)

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Question 14

The current ratio measures ________.

(Multiple Choice)

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Question 15

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

(True/False)

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Question 16

Notes Payable due within two years are classified as ________.

(Multiple Choice)

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Question 17

Adjusting journal entries are prepared ________.

(Multiple Choice)

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Question 18

The adjusting process zeroes out all revenue accounts and all expense accounts.

(True/False)

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Question 19

The Accounts Receivable account is a permanent account.

(True/False)

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Question 20

Exam 4: Completing the Accounting Cycle

Only permanent accounts appear on the post-closing trial balance.

The post-closing trial balance shows the net income for the period just ended.

A reversing entry is ________.

Which of the following statements is true of the worksheet?

In a balance sheet,assets are classified as either current or long term,depending on their liquidity.

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

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

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

The Cash account is a temporary account.

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

The adjusted trial balance of Shutterbug Photography at December 31,2017 is as follows: Using the information above,prepare a post-closing trial balance for Shutterbug Photography (dated December 31,2017).

The current ratio measures ________.

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

Notes Payable due within two years are classified as ________.

Adjusting journal entries are prepared ________.

The adjusting process zeroes out all revenue accounts and all expense accounts.

The Accounts Receivable account is a permanent account.

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