unit 4

Take Test: Unit IV Assessment

Test Information

QUESTION 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 Save Answer

QUESTION 2

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 Save Answer

QUESTION 3

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

Refer to the following adjusted trial balance.

5 points Save Answer

Question Completion

Status:

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

QUESTION 4

Patents, copyrights, and trademarks are examples of __________. short-term investments fixed assets long-term investments intangible assets

5 points Save Answer

QUESTION 5

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 Save Answer

QUESTION 6

Reversing entries are __________. the exact opposite of a prior adjusting entry

5 points Save Answer

dated the last day of the new period required according to GAAP expensive to record and time consuming

QUESTION 7

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 Save Answer

QUESTION 8

Salaries Payable, Accounts Payable, and Unearned Revenue are examples of __________.

short-term investments fixed assets current liabilities long-term liabilities

5 points Save Answer

QUESTION 9

Which of the following is the most liquid asset? Building Prepaid Expenses Accounts Receivable Cash

5 points Save Answer

QUESTION 10

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 Save Answer

QUESTION 11

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 Save Answer

QUESTION 12

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 Save Answer

QUESTION 13

Utilities Expense 100 Utilities Payable 100

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:

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 Save Answer

QUESTION 14

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 Save Answer

QUESTION 15

Which of the following statements is TRUE of the worksheet? The worksheet is a tool that takes the place of financial statement preparation. The worksheet is a document used to summarize data to prepare financial statements. The worksheet is a financial statement issued to the public to communicate the financial results of a company. The worksheet is a type of journal.

5 points Save Answer

QUESTION 16

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 Save Answer

QUESTION 17

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

Owner, capital Service revenue Accounts receivable Salaries expense

5 points Save Answer

QUESTION 18

The financial statements are prepared from the __________. adjusted trial balance chart of accounts statement of owner's equity unadjusted trial balance

5 points Save Answer

QUESTION 19

Which of the following is a permanent account? Wages expense Salaries payable Service revenue Utilities expense

5 points Save Answer

QUESTION 20

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 Save Answer

Click Save and Submit to save and submit. Click Save All Answers to save all answers.