Exam 4: Completing the Accounting Cycle

After closing entries have been posted,________.

Which of the following statements is TRUE of the accounting cycle?

Logan Service Company earned revenues of $100,000 and incurred expenses of $107,000.The owner's name of the sole proprietorship is James Logan.Prepare the entry to close the Income Summary account.Omit explanation.

In which of the columns of the worksheet would Net Income be found?

Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?

Griffen Service Company had the following unadjusted balances at December 31,2018: Salaries Payable,$0;Salaries Expense,$12,000.The following transactions took place on December 31,2018: Accrued Salaries Expense,$5,000 Closed the Salaries Expense account. The following transaction took place on January 4,2019: Paid salaries of $6,000.This payment included $5,000 that was accrued on December 31,2018 and $1,000 for the first few days in January 2019. Prepare the journal entries for January 1,2019 and January 4,2019,assuming that reversing entries were made.Omit explanations.

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

The last two columns generally found on the right side of the worksheet are the income statement columns.

The ten steps of the accounting cycle are presented below.Identify the correct order of the steps by placing the numbers 1 (first step)to 10 (last step)by each description.

The statement of owner's equity shows how the owner's equity changed during the period due to acquiring assets and paying liabilities.

Which of the following is a permanent account?

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

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.

Net income or net loss is the balancing amount on the worksheet and should always be entered on the side that makes the debit and credit columns balance.

Which of the following is a measure of how quickly an item can be converted to cash?

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

The financial statement that reports assets,liabilities,and owner's equity as of the last day of the period is called the ________.

The following contains information from the records of Bourne Engineers and Architects. Calculate the current ratio.(Round your answer to two decimal places. )

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. )

A worksheet can be used to help prepare adjusting entries and the financial statements.