Pioneer's adjusted trial
balance as of December 31, 2018 is given below:
|
Debit
|
Credit
|
|
|
Cash
|
$12,000
|
|
|
Accounts Receivable
|
11,000
|
|
|
Prepaid Rent
|
8,000
|
|
|
Prepaid Insurance
|
2,100
|
|
|
Office Supplies
|
3,000
|
|
|
Land
|
44,000
|
|
|
Building
|
50,000
|
|
|
Accumulated
Depreciationlong dash—Building
|
$10,000
|
|
|
Equipment
|
34,000
|
|
|
Accumulated
Depreciationlong dash—Equipment
|
7,600
|
|
|
Accounts Payable
|
5,500
|
|
|
Salaries Payable
|
4,200
|
|
|
Interest Payable
|
2,900
|
|
|
Mortgage Payable (long
term)
|
6,000
|
|
|
Pioneer ,
Capital
|
11,500
|
|
|
Pioneer, Withdrawals
|
16,700
|
|
|
Service Revenue
|
241,300
|
|
|
Salaries Expense
|
42,500
|
|
|
Insurance Expense
|
5,000
|
|
|
Rent Expense
|
13,500
|
|
|
Utilities Expense
|
18,000
|
|
|
Advertising Expense
|
9,900
|
|
|
Depreciation
Expenselong dash—Building
|
10,900
|
|
|
Depreciation
Expenselong dash—Equipment
|
7,200
|
|
|
Supplies Expense
|
1,200
|
|
|
Total
|
$289,000
|
$289,000
|
Compute the current
ratio. (Round your answer to two decimal places.)
A.
7.33
B.
1.83
C.
2.87
D.
2.18
The following contains
information from the records of the Becker Architecture Firm.
Selected Financial
Information
December 31, 2019
|
Current Assets
|
$90,000
|
|
Current Liabilities
|
30,000
|
|
Longminus−Term
Assets
|
11,000
|
|
Longminus−Term
Liabilities
|
65,000
|
|
Total Revenues
|
50,000
|
|
Total Expenses
|
34,000
|
Which of the following
statements is an accurate interpretation of the current ratio of the Becker
Architecture Firm? (Round your answer to two decimal places.)
A.
The company has $1.03
of current assets for every $1.00 of liabilities.
B.
The company has $0.64
of current assets for every $1.00 of current liabilities.
C.
The company has $3.00 of current assets for every $1.00
of current liabilities.
D.
The company has $0.17
of current assets for every $1.00 of liabilities.
The following contains
information from the records of Bourne Engineers and Architects.
Selected Financial
Information
December 31, 2019
|
Current Assets
|
$90,000
|
|
Current Liabilities
|
30,000
|
|
Longminus−Term
Assets
|
98,000
|
|
Longminus−Term
Liabilities
|
60,000
|
|
Total Revenues
|
54,000
|
|
Total Expenses
|
36,000
|
Calculate the current
ratio. (Round your answer to two decimal places.)
A.
3
B.
1.63
C.
2.53
D.
0.63
A
company has $100,000 in current assets;
$500,000 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.)
A.
1.9
B.
0.91
C.
1.67
D.
1.11
The current ratio measures ________.
A.
a company's
ability to pay current liabilities from its total assets
B.
a company's
profitability during a particular period
C.
a company's ability to pay current liabilities from
current assets
D.
a company's
ability to sell its long−term assets
The current ratio shows the profitability of a
firm.
True
False
Preparing the worksheet is a required step of the
accounting cycle.
True
False
The process by which
companies produce their financial statements for a specific period is called
the ________.
A.
closing process
B.
operating cycle
C.
opening process
D.
accounting cycle
Adjusting journal entries are prepared ________.
A.
after preparing the
adjusted trial balance
B.
after preparing the unadjusted trial balance
C.
after posting the
closing entries
D.
after preparing the
financial statements
GAAP
requires publicly traded companies to prepare a post−closing trial balance and
publish it in their annual report.
True
False
Which
of the following accounts will be included in a post−closing trial balance?
A.
Interest Expense
B.
Interest Payable
C.
Service Revenue
D.
Utilities Expense
Which
of the following accounts will be included in a post−closing trial balance?
A.
Supplies Expense
B.
Owner, Capital
C.
Owner, Withdrawals
D.
Salaries Expense
A business starts each new time period with a
zero beginning balance in permanent accounts.
True
False
Permanent accounts are not closed at the end of
the accounting period.
True
False
The balances of select
accounts of Elliott Company as of December 31, 2018 are given below:
|
Notes
Payablelong dash—shortminus−term
|
$1,400
|
|
Salaries Payable
|
4,000
|
|
Notes
Payablelong dash—longminus−term
|
23,000
|
|
Accounts Payable
|
3,500
|
|
Unearned Revenue
|
3,000
|
|
Interest Payable
|
2,500
|
The Unearned Revenue is
the amount of cash received for services to be rendered in January, 2019.
The Interest Payable is due on February 15, 2019. What are the total
current liabilities shown on the balance sheet at December 31, 2018?
Answer
14400
The balances of select
accounts of Donovan Company as of December 31, 2018 are given below.
|
Debit
|
Credit
|
|
|
Building
|
$120,000
|
|
|
Cash
|
8,000
|
|
|
Office Supplies
|
1,100
|
|
|
Furniture
|
5,000
|
|
|
Prepaid Insurance
|
700
|
|
|
Accumulated
Depreciationlong dash—Furniture
|
$4,000
|
|
|
Land
|
35,000
|
|
|
Accumulated
Depreciationlong dash—Building
|
4,800
|
|
|
Accounts Receivable
|
4,000
|
What amount of total
long−term
assets would be shown on
the balance sheet at December 31, 2018?
A.
$120,000
B.
$155,000
C.
$151,200
D.
160,000
Which of the following is an example of an
intangible asset?
A.
Property
B.
Equipment
C.
Copyright
D.
Plant
The statement of owner's equity shows how the owner's equity changed during the period due to acquiring assets and
paying liabilities.
True
False
The
operating cycle is the time span required for a business to repay its long−term liabilities.
True
False
Which financial statement is prepared last?
A.
balance sheet
B.
income statement
C.
statement of owner's
equity
D.
The financial statements
can be prepared in any order.
No comments:
Post a Comment