Exam 4: Completing the Accounting Cycle

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

In regards to a company using a computerized accounting system,which of the following statements is incorrect?

A worksheet is a substitute for the financial statements.

A company has $120,000 in current assets; $550,000 in total assets; $90,000 in current liabilities,and $110,000 in total liabilities.Calculate the current ratio of the company.(Round your answer to two decimal places.)

Wilson Engraving just completed operations for the year ending December 31,2018.Accounts from the adjusted trial balance dated December 31,2018 are listed in alphabetical order below: Requirement: a.Prepare the closing entries.Omit explanations. b.Prepare,in good form,the income statement,statement of owner's equity,and balance sheet.There were no new capital contributions during the year. c.Compute the current ratio.Label your work.Comment on the current ratio.

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

Reversing entries are used in conjunction with ________.

The following is the adjusted trial balance for Baker Services. Accounts Debit Credit Cash \ 31,100 Accounts Receivable 30,000 Prepaid Insurance 3,500 Office Supplies 3,200 Land 49,000 Building 150,000 Accumulated Depreciation-Building \ 14,500 Equipment 77,000 7,000 Accumulated Depreciation-Equipment 25,000 Accounts Payable 2,000 Salaries Payable 26,000 Unearned Revenue 106,00 Mortgage Payable 24,500 Baker, Withdrawals 23,000 Service Revenue 275,000 Salaries Expense 64,000 Depreciation Expense-Building and Equipment 5,600 Supplies Expense 11,000 Insurance Expense 14,600 Utilities Expense 18,000 Total \ 480,000 \ 480,000 There were no new capital contributions during the year.After the closing entries are posted,what is the balance in Baker,Capital?

Which of the following is a permanent account?

Property,plant,and equipment are ________.

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?

On December 31,2018,Absolute Services Company prepared the following accrual adjustment: Salaries Expense 1,000 Salaries Payable 1,000 The company paid salaries amounting to $1,500 on January 7,2019 for the two-week pay period that ended on January 6,2019.Journalize the entries for January 1,2019 and January 7,2019,assuming the company uses reversing entries.Omit explanations.

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

Which accounts are closed at the end of the accounting period? Why is it necessary to close these accounts?

For each account listed,identify the category in which it would appear on a classified balance sheet. Account Location on a Classified Balance Sheet a Smith, Capital b Accumulated Depreciation - Equipment c Notes Payable (due in two years) d Unearned Revenue (short-term) e Salaries Payable f Accounts Receivable g Trademark h Prepaid Rent (prepaid for six months)

Adjusting journal entries are prepared ________.

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

In a balance sheet,prepared under IFRS guidelines,cash is often shown as one of the last assets listed.

As a part of the closing process,revenues and expenses may be closed to a temporary account called the Net Income (Loss).

A balance sheet prepared in the account form lists the assets at the top and the liabilities and owner's equity are positioned below the assets.