The typical division of liabilities on a classified balance sheet is:

A.dependent on the size of the company.

B.current and long-term.

C.short-term, medium-term, and long-term.

D.by size of debt.

2. Which of the following accounts should be closed to the Income Summary account at the end of the fiscal year?

A.Accounts Receivable

B.Cash

C.Accounts Payable

D.Depreciation Expense-Machinery

3.Which of the following would always appear in a statement of retained earnings?

A.The ending balance for capital stock.

B.The ending balance for total stockholders' equity.

C.The beginning balance for retained earnings.

D.The beginning balance for total stockholders' equity.

4.Current liabilities would include all of the following except:

A.Salaries payable.

B.Unearned rental fees.

C.Accounts payable.

D.Mortgage notes payable (due in five years).

AND THE FOLLOWING?

Question 11

1. At year-end, the Browne Repair Company had $800 of repair supplies on hand. The unadjusted balance in the Repair Supplies on Hand account is $1,900. What is the amount of the necessary adjusting entry?
2. A.$1,100
3. B.$ 800
4. C.$2,700
5. D.$1,900

Question 12

1. The Jesup Corporation purchased a five-year insurance policy on October 1, 2012, providing coverage from that date and paid the entire five-year premium of $5,000 on the date of purchase. Jesup recorded the purchase by debiting Prepaid Insurance and crediting cash for $5,000. What adjusting entry is needed at December 31, 2012?
2. A.Debit Insurance Expense; credit Prepaid Insurance, $500.
3. B.Debit Insurance Expense; credit Prepaid Insurance, $1,000.
4. C.Debit Prepaid Insurance; credit Insurance Expense, $500.
5. D.Debit Insurance Expense; credit Prepaid Insurance, $250.

Question 13

1. The account, Unearned Service Fees, is an income statement account that recognizes the amount of cash received before services are rendered.
2. True
3. False

Question 14

1. Prepaid insurance is an asset, primarily because the policy can be surrendered and cash received in exchange.
2. True
3. False

Question 15

In July 2011, Wexler Company received $50,000 as advance payment from subscribers for a series of five concerts. It was credited to Unearned Ticket Fees. Four of the concerts were held during 2011, and the final one was held in February 2012. If the company's fiscal year ends December 31, what adjusting entry would be required at the end of 2011?

A.Debit Ticket Revenue and credit Unearned Ticket Fees for $40,000.

B.Debit Ticket Revenue and credit Unearned Ticket Fees for $10,000.

C.Debit Unearned Ticket Fees and credit Ticket Revenue for $10,000.