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Exam 4: Completing the Accounting Cycle

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Question 81

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The current portion of long-term debt is classified with the______________.

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verified

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Question 82

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Plant assets are tangible assets that are usually long-term assets used to produce or sell products and services.

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B) False

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Question 83

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A classified balance sheet differs from an unclassified balance sheet in that

Adjusting entries are normally entered in the general journal before they are posted to the work sheet.

The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.

Use the information in the adjusted trial balance presented below to calculate the current ratio for Jones Company:

The closing process resets ________,__________,and ________ account balances to zero at the end of each accounting period.

Reversing entries are optional.

Balance sheet accounts are called ____________________ accounts because they carry their balances to the next accounting period,and are not closed as long as the company continues to own the asset,owe the liability and have equity.

The following information is available for Crandall Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Crandall,Capital?

Harry's Bikes current ratio is 1.3.The industry average for the current ratio is 1.2.This indicates that Harry's Bikes can cover its short term liabilities with its short term assets.

How is the current ratio calculated? How is it used to evaluate a company?

What is the purpose of closing entries? Describe the closing process.

If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column.The Balance Sheet columns will balance on completing the work sheet but with the wrong net income,if the amount sorted in error is:

Temporary accounts include all of the following except:

Use the information in the adjusted trial balance presented below to calculate current assets for Jones Company:

The following are the steps in the accounting cycle.List them in the order in which they are completed: Prepare adjusted trial balance Post transactions Prepare an unadjusted trial balance Journalize transactions Prepare the financial statements Close the temporary accounts Adjust the ledger accounts Prepare a post-closing trial balance Analyze transactions

At the beginning of the year,Beta Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000.During the year,the company reported total revenues of $226,000 and expenses of $175,000.Also,owner withdrawals during the year totaled $48,000.Assuming no other changes to owner's capital,the balance in the owner's capital account at the end of the year would be:

A post-closing trial balance reports:

The Income Summary account is a permanent account that will be carried forward period after period.