Question 4

1.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

Question 5

1.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

Question 6

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

Owner, capital

Service revenue

Accounts receivable

Salaries expense