Exam 4: Completing the Accounting Cycle

The net income of Hendley Company for the year is $25,000.Withdrawals during the year were $30,000.No new capital contributions were made during the year.Which of the following statements is TRUE?

When preparing a worksheet,net income is recorded in the ________.

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

The Owner,Withdrawals account is included in the income statement section of the worksheet.

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

The balances of select accounts of Donovan Company as of December 31,2018 are given below. Debit Credit Building \ 130,000 Cash 9,000 Office Supplies 800 Furniture 6,000 Prepaid Insurance 450 Accumulated Depreciation-Furniture \ 3,000 Land 30,000 Accumulated Depreciation-Building 4,300 Accounts Receivable 3,000 What amount of total long-term assets would be shown on the balance sheet at December 31,2018?

After closing entries have been posted,________.

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

Under which of the following categories would bonds held as an investment for more than a year appear?

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

Reversing entries are ________.

Which of the following entries is necessary to close the appropriate depreciation account at the end of the year?

Salaries Payable,Accounts Payable,and Unearned Revenue are examples of ________.

Jackson Services Company earned revenues of $104,000,incurred expenses of $113,000.The owner made withdrawals of $4,000.There were no new capital contributions during the year.The company is a sole proprietorship.Which of the following statements is correct?

Which of the following is an example of an intangible asset?

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

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

The Gonzalez,Capital account is a temporary account.

The post-closing trial balance shows the updated Owner,Capital balance.

The entries that transfer the revenue,expense,and Owner,Withdrawals balances to the Owner,Capital account to prepare the company's books for the next period are called ________ entries.