1. Cash and all other assets that may be reasonably expected to be converted to cash or consumed within one year or the normal operating cycle of the business are classified as

a. marketable securities. b. current assets. c. investments. d. temporary investments.

2.

Closing entries are made in the

a. cash receipts journal.

b. purchases journal.

c. general journal.

d. sales journal.

3.

A trial balance of the general ledger accounts taken after the temporary owner's equity accounts have been closed is usually referred to as a

a. new accounting period trial balance.

b. post-closing trial balance.

c. subsidiary trial balance.

d. pre-closing trial balance.

4.

Net sales minus cost of goods sold equals

a. other expenses.

b. operating income.

c. gross profit.

d. operating expenses.

5.

The following information was taken from the financial statements of Brandon's Motor Shop:

Total current assets	$ 53,000
Property, plant, and equipment	6,000
Current liabilities	21,000
Long-term liabilities	4,000
Owner's equity	34,000
Beginning inventory	31,000
Ending inventory	33,000
Cost of goods sold	152,000
Net income	42,000

The current ratio for Brandon's Motor Shop is closest to

a. 2.5 to 1.

b. 1.3 to 1.

c. 2.4 to 1.

d. 1 to 2.5.