Question 1

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

Accepted Answer

A) Equipment 
B) Plant 
C) Property 
D) Copyright 
A) Equipment 
B) Plant 
C) Property 
D) Copyright

Question 2

The balances of select accounts of McMurray Company as of December 31,2018 are given below:   The Unearned Revenue is the amount of cash received for services to be rendered in January 2019.Interest Payable will be paid on February 5,2019.What are the total long-term liabilities shown on the balance sheet at December 31,2018?

Accepted Answer

A) $1,500 
B) $3,000 
C) $6,000 
D) $23,000 
A) $1,500 
B) $3,000 
C) $6,000 
D) $23,000

Question 3

The current ratio measures a company's ________.

Accepted Answer

A) overall ability to pay liabilities 
B) ability to pay current liabilities from current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow 
A) overall ability to pay liabilities 
B) ability to pay current liabilities from current assets 
C) proportion of assets that are financed by debt 
D) rate of cash flow

Question 4

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer)?

Accepted Answer

A) Land 
B) Equipment 
C) Building 
D) Accounts Receivable 
A) Land 
B) Equipment 
C) Building 
D) Accounts Receivable

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A balance sheet that lists the assets above the liabilities and owner's equity sections is a(n)________ balance sheet.

Accepted Answer

A) report form 
B) unclassified form 
C) account form 
D) audited form 
A) report form 
B) unclassified form 
C) account form 
D) audited form

Question 7

An account that is NOT closed at the end of the period is called a(n)________.

Accepted Answer

A) expense account 
B) temporary account 
C) permanent account 
D) revenue account 
A) expense account 
B) temporary account 
C) permanent account 
D) revenue account

Question 8

The following is the adjusted trial balance as of December 31,2019 of Brooks Design Studio:
   Prepare the closing entry for expenses.Omit explanation.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 9

The permanent accounts-assets,liabilities,and owner's equity-are closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 10

Adjusting journal entries are prepared ________.

Accepted Answer

A) after preparing the adjusted trial balance 
B) after preparing the unadjusted trial balance 
C) after posting the closing entries 
D) after preparing the financial statements 
A) after preparing the adjusted trial balance 
B) after preparing the unadjusted trial balance 
C) after posting the closing entries 
D) after preparing the financial statements

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

The Depreciation Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 13

The balance sheet is the first financial statement that is prepared at the end of the period.

Accepted Answer

A) True 
 B)False

Question 14

A business starts each new time period with a zero beginning balance in permanent accounts.

Accepted Answer

A) True 
 B)False

Question 15

The following is the adjusted trial balance as of December 31,2018 of Bravo Photography:
   Provide the closing entry for revenues.Omit explanation.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 16

A worksheet is a substitute for the financial statements.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

On December 31,2018,Action Services Company prepared the following accrual adjustment:
   Action uses reversing entries.Prepare the reversing entry on January 1,2019.Omit explanation.

Accepted Answer

The answer of On December 31,2018,Action Services Company prepared the...

Question 19

On December 31,2018,Absolute Services Company prepared the following accrual adjustment:
   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.

Accepted Answer

On January 1,Absolute Services

Question 20

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accepted Answer

A) True 
 B)False

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

The current ratio measures a company's ________.

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer)?

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

A balance sheet that lists the assets above the liabilities and owner's equity sections is a(n)________ balance sheet.

An account that is NOT closed at the end of the period is called a(n)________.

The following is the adjusted trial balance as of December 31,2019 of Brooks Design Studio: Prepare the closing entry for expenses.Omit explanation.

The permanent accounts-assets,liabilities,and owner's equity-are closed to the Income Summary account.

Adjusting journal entries are prepared ________.

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.

The Depreciation Expense account is a temporary account.

The balance sheet is the first financial statement that is prepared at the end of the period.

A business starts each new time period with a zero beginning balance in permanent accounts.

The following is the adjusted trial balance as of December 31,2018 of Bravo Photography: Provide the closing entry for revenues.Omit explanation.

A worksheet is a substitute for the financial statements.

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

On December 31,2018,Action Services Company prepared the following accrual adjustment: Action uses reversing entries.Prepare the reversing entry on January 1,2019.Omit explanation.

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Completing the Accounting Cycle

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

The current ratio measures a company's ________.

Which of the following is a current asset that is expected to be converted to cash,sold,or consumed during the next year (or the normal operating cycle,if longer)?

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

A balance sheet that lists the assets above the liabilities and owner's equity sections is a(n)________ balance sheet.

An account that is NOT closed at the end of the period is called a(n)________.

The following is the adjusted trial balance as of December 31,2019 of Brooks Design Studio: Prepare the closing entry for expenses.Omit explanation.

The permanent accounts-assets,liabilities,and owner's equity-are closed to the Income Summary account.

Adjusting journal entries are prepared ________.

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.

The Depreciation Expense account is a temporary account.

The balance sheet is the first financial statement that is prepared at the end of the period.

A business starts each new time period with a zero beginning balance in permanent accounts.

The following is the adjusted trial balance as of December 31,2018 of Bravo Photography: Provide the closing entry for revenues.Omit explanation.

A worksheet is a substitute for the financial statements.

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

On December 31,2018,Action Services Company prepared the following accrual adjustment: Action uses reversing entries.Prepare the reversing entry on January 1,2019.Omit explanation.

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Filters