QUESTION 1 Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet? A. Rent revenue B. Insurance expense C. Salary payable D. Equipment

QUESTION 2 Which of the following statements is TRUE concerning the worksheet? A. The worksheet is a ledger. B. The worksheet is a document used to summarize data to prepare the financial statements. C. The worksheet is a financial statement. D. The worksheet is a journal

QUESTION 3 Under which of the following categories would Buildings appear? A. Current assets B. Long-term liabilities C. Long-term assets D. Current liabilities

QUESTION 4 Prepaid rent in the worksheet's trial balance column is $4,000. Prepaid rent in the balance sheet column is $2,000. Which of the following entries would have caused this difference? A. A $2,000 debit entry to Prepaid rent in the worksheet's adjustments column B. A $2,000 credit entry to Rent expense in the worksheet's adjustments column C. A $2,000 credit entry to Prepaid rent in the worksheet's adjustments column D. A $2,000 debit entry to Cash in the worksheet's adjustments column

QUESTION 5 Adkins Company has a current ratio of 1.0 and a debt ratio of 0.7. Wilson Company has a current ratio of 1.4 and a debt ratio of 0.5. Both companies are in the same industry. Which of the following statements is TRUE? A. The two companies' debt ratios and current ratios vary in different directions, and the companies appear to be in similar financial shape. B. Adkins Company appears to be in better financial shape than Wilson Company. C. The two companies' debt ratios and current ratios vary in different directions, and these results do not make sense. D. Wilson Company appears to be in better financial shape than Adkins Company

QUESTION 6 What is the key distinction between current and non-current assets? A. Current assets always have lower balances than non-current assets. B. Non-current assets are assets which do not lose their value over time. C. Current assets will be used up or converted to cash within one year or one operating cycle. D. Non-current assets will not be used until the future.

QUESTION 7 Which of the following is the measure of how quickly an item can be converted to cash? A. Debt ratio B. Current ratio C. Liquidity D. Accounting cycle

QUESTION 8 Revenues total $10,200. Expenses total $7,300. Withdrawals total $2,600. What is the balance in the Income summary account prior to closing Net income or loss to the Capital account? A. Credit balance of $300 B. Debit balance of $2,900 C. Credit balance of $2,900 D. Balance of $0

QUESTION 9 Which of the following accounts are temporary accounts that must be closed at the end of the year? A. Assets, liabilities and withdrawals B. Revenues, expenses and withdrawals C. Assets, liabilities and capital D. Revenues, expenses and capital

QUESTION 10 Which of the following accounts does NOT close at the end of the period? A. Accumulated depreciation B. Depreciation expense C. Withdrawals D. Sales revenues