Question 1

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

Question 2

Which of the following is a plant asset?

Accepted Answer

A) equipment 
B) patents 
C) trademark 
D) Accounts Receivable

Question 3

The following contains information from the records of the Wellborn Engineers and Architects. 
- Calculate the current ratio.

Accepted Answer

A) 1.58 
B) 2.32 
C) 0.59 
D) 1.68

Question 4

Calculate the current ratio using the following information:

Accepted Answer

A) 1.92 
B) 2.43 
C) 1.55 
D) 1.68

Question 5

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

Accepted Answer

A) under the unadjusted trial balance credit column,the adjusted trial balance credit column and the balance sheet credit column 
B) under the unadjusted trial balance debit column,the adjusted trial balance debit column and the balance sheet debit column 
C) under the balance sheet debit column and the income statement credit column 
D) under the balance sheet credit column and the income statement debit column

Question 6

Which of the following account's balance is carried forward to the next accounting period?

Accepted Answer

A) Accumulated Depreciation 
B) Depreciation Expense 
C) Dividends 
D) Sales Revenue

Question 7

The Interest Expense in the worksheet's unadjusted trial balance column is $3,000.Interest Expense in the income statement column is $7,000.Which of the following entries would have caused this difference?

Accepted Answer

A) a $7,000 credit to Interest Expense in the worksheet's adjustments column 
B) a $7,000 credit to Interest Payable in the worksheet's adjustments column 
C) a $4,000 debit to Interest Expense in the worksheet's adjustments column 
D) a $4,000 credit to Interest Expense in the worksheet's adjustments column

Question 8

The following contains information from the records of the Wellborn Engineers and Architects. 
- Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects?

Accepted Answer

A) The company has $2.32 of current assets for every $1.00 of liabilities. 
B) The company has $1.68 of current assets for every $1.00 of current liabilities. 
C) The company has $1.58 of current assets for every $1.00 of liabilities. 
D) The company has $0.59 of current assets for every $1.00 of current liabilities.

Question 9

Your Best Advisors,a service company,uses reversing entries.On March 31,2014,they prepared the following adjusting entry to accrue Utilities Expense:  Which of the following entries is the correct reversing entry to be prepared on April 1,2014?

Accepted Answer

A)   
B)   
C)   
D)

Question 10

A reversing entry is ________.

Accepted Answer

A) a journal entry used to close the temporary accounts after preparation of financial statements 
B) a special journal entry used to make the adjustments that took place after preparing the trial balance 
C) a special journal entry that eases the burden of accounting for transactions in the next period 
D) a journal entry prepared at the end of an accounting period to match assets with liabilities

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Patents,copyrights,and trademarks are examples of ________.

Accepted Answer

A) short-term investments 
B) fixed assets 
C) long-term investments 
D) intangible assets

Question 14

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

Accepted Answer

A) income statement 
B) statement of retained earnings 
C) balance sheet 
D) unadjusted trial balance

Question 15

People like to think they see themselves in Ditka for the same reasons you think you see yourself in Theo Epstein.On December 31,2014,Axle Services Inc.prepared the following accrual adjustment:
  The company paid salaries amounting to $200 on January 07,2015 for salaries due in 2014.Journalize the entries for January 1,2015 and January 7,2015,assuming the company uses reversing entries.

Accepted Answer

The answer of People like to think they see themselves...

Question 16

The Prepaid Rent in the worksheet's unadjusted trial balance column is $4,000.Prepaid Rent in the balance sheet column is $2,000.Which of the following entries would have caused this difference?

Accepted Answer

A) a $2,000 debit entry to Prepaid Rent in the worksheet's adjustments column 
B) a $2,000 credit entry to Rent Expense in the worksheet's adjustments column 
C) a $2,000 credit entry to Prepaid Rent in the worksheet's adjustments column 
D) a $2,000 debit entry to Cash in the worksheet's adjustments column

Exam 4: Completing the Accounting Cycle

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) ?