Exam 5: The Accounting Cycle: Reporting Financial Results

A current asset may be cash or must be capable of being converted into cash with a relatively short period of time, usually less than five years.

Assets are considered current assets if they are cash or will usually be converted into cash:

The worksheet:

The return on equity ratio equals profit divided by ordinary shares.

When a worksheet is prepared which account would not be entered into the income statement columns?

The concept of adequate disclosure requires a company to inform financial statement users of each of the following, except:

The concept of adequate disclosure:

Refer to the above data. The total debits in the After Closing-Trial Balance will equal:

Income Summary appears on which financial statement:

The account, Accumulated Depreciation, is considered a permanent account.

Which of the following items will usually not be disclosed in an annual report?

What types of information must be disclosed in the financial statements?

Measures of profitability tell us how quickly current assets can be converted into profits.

Given the following information for the Maple Tree Co. for the year ended December 31, 2009, prepare a Statement of Shareholders' Equity.

In the closing of the accounts at the end of the period, which of the following is closed directly into the Retained Earnings account?

Which of the following items should not be disclosed in the body of the financial statements, but rather in the notes to the financial statements?

The purpose of making closing entries is to:

Income summary does not appear on the income statement.

The current ratio equals current assets plus current liabilities.

Closing entries An Adjusted Trial Balance for Tiger Limited, at December 31 appears below. Prepare journal entries to close the accounts. Use four entries to: (1) close the revenue account, (2) close the expense accounts, (3) close the Income Summary account, and (4) close the Dividends account. Date GENERAL JOURNAL