Exam 4: Completing the Accounting Cycle

Assets with no physical form are ________.

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.

The Accumulated Depreciation account is a permanent account.

Revenue may be called Profit and Net Income may be called Turnover in an income statement prepared under IFRS.

The following contains information from the records of the Becker Architecture Firm. Becker Architecture Firm Selected Financial Information December 31,2019 Current Assets \ 90,000 Current Liabilities 30,000 Long-Term Assets 11,000 Long-Term Liabilities 65,000 Total Revenues 50,000 Total Expenses 34,000 Which of the following statements is an accurate interpretation of the current ratio of the Becker Architecture Firm? (Round your answer to two decimal places.)

A reversing entry ________.

A reversing entry is ________.

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

List the steps of the accounting cycle that take place during the period.

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

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

The beginning balance in the Lopez,Capital account of a company was $10,000.The revenues and expenses were $200,000 and $170,000,respectively.During the year,Lopez took withdrawals of $3,000.There were no new capital contributions during the year.The ending balance in Lopez,Capital was $40,000.

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

Buildings,land,and equipment are classified as ________.

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.

Generally Accepted Accounting Principles (GAAP)require every organization to prepare reversing entries.

GAAP requires publicly traded companies to prepare a post-closing trial balance and publish it in their annual report.

Assets and liabilities are presented in a different order on a balance sheet prepared following IFRS than on a balance sheet prepared following U.S.GAAP.

List the steps of the accounting cycle that take place at the end of the period.

The following is the adjusted trial balance columns from the worksheet for Picture Perfect Photography. Picture Perfect Photography Adjusted Trial Balance December 31,2018 Accounts Debit Credit Cash \ 15,000 Accounts Receivable 30,000 Prepaid Insurance 7,500 Office 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 Ramirez, Capital 21,290 Ramirez, Withdrawals 23,000 Service Revenue 289,000 Salaries Expense 61,000 Depreciation Expense--Building and Equipment 6,150 Office Supplies Expense 14,040 Insurance Expense 14,000 Utilities Expense 20,900 Total \ 469,790 \ 469,790 Using the information provided in the worksheet above,prepare an income statement for Picture Perfect Photography.