1. Complete by the appropriate word. Asset, equity, fixed prset, liabifities, balance sheet, posting, joufnal, cost, profits, proprietorship, ledger a. The process of transferring the daily journal entries to the ledger represents the .. Po. b. Ting b. The day by day business transactions are recorded in a .0,0.4 ia. 9 . d. Something referred to net worth or ownership is c. Land buildings and equipment which can not be converted into immedinte cash represents the fixed. 2. Give the adequate definitions about: a. Working capltal: The not working capitol can be obtain directly from the balance shect the diffrent between current assets and libilite. b. The cash ratio: Exercise 2 ( 8 pts) CR=Totalchrout1iabilitesImmedialyavailablecash Chose the wright proposition 1. THERMO Co. has current assets of $60,000 and total assets of $170,000. ABC has current liabilities of $30,000 and total liabilities of $90,000. What is the amount of ABC's owner's equity? a- $20,000 b- $140,000 c- $80,000 2. Which of the following is an asset account? d- $120,000 e- $110,000 a- Accounts Payable b-Prepaid Insurance c- Unearned Revenue 3. On December 1, ABC Co. hired Juanita Perez to begin working on January 2 at a monthly salary of $4,000.ABC s balance sheet of December 31 will show a liability of what amount? a- $4,000 b- $48,000 c-No Liability 4. Which of the following accounts is not a current asset? a- Accounts Receivable b - Land c- Prepaid lnsurance d- Supplies 5. What is the normal balance for contra asset accounts? a- Debit b- Credit 6. When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. What is the other effect on the balance sheet? a- Owner's/Stockholders' Equity Decreases b- None The amount reported on the balance sheet for Property; Plant and Equipment is the company's estimate f the fair market value as of the balance sheet date. -True b-False ABC Co. performed services for Client Kay in December and billed Kay $4,000 with terms of net 30 days. BC follows the accrual basis of accounting. In January ABC received the $4,000 from Kay. In January BC will debit Cash, since cash was received. What account should ABC credit in the January entry? Accounts Receivable b- Service Revenue c-Owner's Equity 1. Complete by the appropriate word. Asset, equity, fixed prset, liabifities, balance sheet, posting, joufnal, cost, profits, proprietorship, ledger a. The process of transferring the daily journal entries to the ledger represents the .. Po. b. Ting b. The day by day business transactions are recorded in a .0,0.4 ia. 9 . d. Something referred to net worth or ownership is c. Land buildings and equipment which can not be converted into immedinte cash represents the fixed. 2. Give the adequate definitions about: a. Working capltal: The not working capitol can be obtain directly from the balance shect the diffrent between current assets and libilite. b. The cash ratio: Exercise 2 ( 8 pts) CR=Totalchrout1iabilitesImmedialyavailablecash Chose the wright proposition 1. THERMO Co. has current assets of $60,000 and total assets of $170,000. ABC has current liabilities of $30,000 and total liabilities of $90,000. What is the amount of ABC's owner's equity? a- $20,000 b- $140,000 c- $80,000 2. Which of the following is an asset account? d- $120,000 e- $110,000 a- Accounts Payable b-Prepaid Insurance c- Unearned Revenue 3. On December 1, ABC Co. hired Juanita Perez to begin working on January 2 at a monthly salary of $4,000.ABC s balance sheet of December 31 will show a liability of what amount? a- $4,000 b- $48,000 c-No Liability 4. Which of the following accounts is not a current asset? a- Accounts Receivable b - Land c- Prepaid lnsurance d- Supplies 5. What is the normal balance for contra asset accounts? a- Debit b- Credit 6. When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. What is the other effect on the balance sheet? a- Owner's/Stockholders' Equity Decreases b- None The amount reported on the balance sheet for Property; Plant and Equipment is the company's estimate f the fair market value as of the balance sheet date. -True b-False ABC Co. performed services for Client Kay in December and billed Kay $4,000 with terms of net 30 days. BC follows the accrual basis of accounting. In January ABC received the $4,000 from Kay. In January BC will debit Cash, since cash was received. What account should ABC credit in the January entry? Accounts Receivable b- Service Revenue c-Owner's Equity