Exam 4: Completing the Accounting Cycle

A company has $120,000 in current assets; $600,000 in total assets; $90,000 in current liabilities,and $140,000 in total liabilities.Calculate the current ratio of the company.(Round your answer to two decimals. )

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

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

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

Assets that are expected to be converted to cash,sold,or used up during the next 12 months,or within the business's normal operating cycle if the cycle is longer than a year,are called ________ assets.

Buildings,land,and equipment are classified as ________.

The time span during which cash is paid for goods and services,which are then sold to customers from whom the business collects cash,is called the ________.

Property,plant,and equipment are categorized as ________.

Which of the following accounts will have an ending balance after the closing process is completed?

The following contains information from the records of the Wellborn Engineers and Architects. Wellborn Engineers and Architects Selected Financial Information December 31,2017 Current Assets \ 90,000 Current Liabilities 30,000 Long-Term Assets 95,000 Long-Term Liabilities 65,000 Total Revenues 50,000 Total Expenses 37,000 Calculate the current ratio.(Round your answer to two decimals. )

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

On December 31,2016,Axle Services,Inc.prepared the following accrual adjustment: Salaries Expense 1,000 Salaries Payable 1,000 The company paid salaries amounting to $1,500 on January 7,2017 for the two-week pay period that ended on January 6,2017.Journalize the entries for January 1,2017 and January 7,2017,assuming the company uses reversing entries.

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

In an accounting cycle,which of the following steps takes place only at the end of the accounting period?

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

The formula for computing the current ratio is ________.

In the closing process,the Dividends account is closed to the Retained Earnings account.

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

Which of the following is true of a completed worksheet?

An income statement includes ________.