ARE YOU GREAT AT ACCOUNTING???

QUESTION 1

1. Which of the following are temporary accounts that are closed at the end of the year?

		Assets, liabilities, and Owner, Withdrawals
		Revenues, expenses, and Owner, Withdrawals
		Assets, liabilities, and owner's equity
		Revenues, expenses, and owner's equity

5 points   

QUESTION 2

1. Reversing entries are __________.

		the exact opposite of a prior adjusting entry
		dated the last day of the new period
		required according to GAAP
		expensive to record and time consuming

5 points   

QUESTION 3

1. Brownstone Company has a current ratio of 4.00. This indicates that the company has $4 in __________.

		current liabilities for every $1 of current assets
		total assets for every $1 of current liabilities
		current assets for every $1 of current liabilities
		total assets for every $1 of current assets

5 points   

QUESTION 4

1. Refer to the following adjusted trial balance.

Accounts	Debit	Credit
Cash	$1,700
Accounts Receivable	8,600
Office Supplies	400
Equipment	28,100
Accumulated Depreciation — Equipment		$2,000
Accounts Payable		1,200
Salaries Payable		950
Unearned Revenue		450
Smith, Capital		3,800
Smith, Withdrawals	1,000
Service Revenue		55,600
Salaries Expense	20,000
Supplies Expense	2,200
Depreciation Expense — Equipment	2,000
Total	$64,000	$64,000

There were no new capital contributions during the year. What will the balance of the Smith, Capital account be after the closing entries are posted?

		$34,200
		$31,400
		$35,200
		$32,400

5 points   

QUESTION 5

1. Your business advisor, a consulting company, uses reversing entries. On March 31, 2018, the bookkeeper journalized and posted the following adjusting entry to accrue Utilities Expense:

Utilities Expense	100
Utilities Payable		100

Which of the following entries is the correct reversing entry to be prepared on April 1, 2018?

		Utilities Payable                       100       Utilities Expense         100
		Utilities Expense                     100       Income Summary         100
		Cash                       100       Utilities Expense                       100
		Utilities Expense                       100       Accounts Receivable         100

5 points   

QUESTION 6

1. Assets that are expected to be converted to cash, sold, or used up during the next 12 months, or within the business's normal operating cycle if the cycle is longer than a year, are called __________ assets.

		intangible
		plant
		long-term
		current

5 points   

QUESTION 7

1. Which of the following is the most liquid asset?

		Building
		Prepaid Expenses
		Accounts Receivable
		Cash

5 points   

QUESTION 8

1. Liquidity is a measure of how __________.

		quickly an asset may be converted into cash
		long an asset can be used
		easily an asset can be exchanged for another asset
		quickly an asset appreciates in value

5 points   

QUESTION 9

1. The net income of Hendley Company for the year is $25,000. Withdrawals during the year were $30,000. No new capital contributions were made during the year. Which of the following statements is TRUE?

		Hendley, Capital account decreases by $25,000.
		Hendley, Capital account decreases by $5,000.
		Hendley, Capital account increases by $30,000.
		Hendley, Capital will remain the same.

5 points   

QUESTION 10

1. 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.)

		1.33
		1.72
		1.75
		1.09

5 points   

QUESTION 11

1. The financial statements are prepared from the __________.

		adjusted trial balance
		chart of accounts
		statement of owner's equity
		unadjusted trial balance

5 points   

QUESTION 12

1. The current ratio measures __________.

		a company's ability to sell its long-term assets
		a company's ability to pay current liabilities from its total assets
		a company's ability to pay current liabilities from current assets
		a company's profitability during a particular period

5 points   

QUESTION 13

1. Which of the following is a permanent account?

		Wages expense
		Salaries payable
		Service revenue
		Utilities expense

5 points   

QUESTION 14

1. Which financial statement is prepared last?

		Income statement
		Balance sheet
		Statement of owner's equity
		The financial statements can be prepared in any order.

5 points   

QUESTION 15

1. The time span during which cash is paid for goods and services, which are then sold to customers from whom the business collects cash, is called the __________.

		production time
		operating cycle
		accounting cycle
		sales time

5 points   

QUESTION 16

1. The balances of select accounts of Sandra Company as of December 31, 2018 are given below:

	Debit	Credit
Building	$140,000
Cash	9,000
Office Supplies	1,200
Furniture	6,000
Prepaid Insurance	550
Accumulated Depreciation—Furniture		$4,000
Land	31,000
Accumulated Depreciation—Building		4,000
Accounts Receivable	2,200

2. The insurance has been prepaid until June 30, 2019. Determine the amount of total current assets reported on the balance sheet at December 31, 2018.

		$17,200
		$10,200
		$12,950
		$10,750

5 points   

QUESTION 17

1. Adjusting journal entries are prepared __________.

		after preparing the adjusted trial balance
		after preparing the unadjusted trial balance
		after posting the closing entries
		after preparing the financial statements

5 points   

QUESTION 18

1. Martinville Company earned revenues of $20,000 and incurred expenses of $4,000. Martinville withdrew $3,500 for personal use. What is the balance in the Income Summary account prior to closing net income or loss to the Martinville, Capital account?

		Debit balance of $16,000
		Debit balance of $12,500
		Credit balance of $16,000
		Credit balance of $20,000

5 points   

QUESTION 19

1. Which of the following accounts will be closed by debiting the Income Summary account?

		Owner, capital
		Service revenue
		Accounts receivable
		Salaries expense

5 points   

QUESTION 20

1. Patents, copyrights, and trademarks are examples of __________.

		short-term investments
		fixed assets
		long-term investments
		intangible assets

5 points