(True or False) The current ratio reflects current liabilities divided by current assets.

(True or False) A journal entry is always required for the amount of the difference between the balance per bank statement and balance per books.

Jordan erroneously credited a liability account rather than a revenue account. Therefore: A. total assets are not affected. B. expenses are understated. C. ending stockholders' equity will be overstated. D. liabilities are understated.. E. None of these.

A bank reconciliation revealed cash per the bank statement of $1,484, cash per company records of $1,681, bank charges of $11, deposits in transit of $317, outstanding checks of $221, and NSF checks of $90. The correct cash balance is? A. $1,479. B. $1,490. C. $1,580. D. $1,777. E. None of these. 15. (True or False) The transactions in the journal and the accounts in the ledger are linked together by a transfer process called journalizing.

On January 7, Collin purchased supplies on account for $1,000, and recorded this purchase to the Supplies account. At the end of January, Collin had $600 of these supplies still on hand. The proper adjusting journal entry at January 31 would: A. include a debit to Supplies for $1,000. B. include a credit to Supplies for $400. C. include a debit to Accounts Payable for $400. D. include a debit to Supplies Expense for $600. E. None of these.

Which of the following statements is true? A. Dividends decrease net income. B. Net income causes liabilities to decrease. C. Assets will decrease by the amount of net loss. D. Cash increases as net income increases. E. None of these.

Amounts that must be left on deposit and cannot be withdrawn are known as: A. compensating balances. B. dead monies. C. sinking funds. D. demand deposits. E. None of these.

Failure to record the purchase of office furniture on account will result in: A. an overstatement of assets. B. an understatement of liabilities. C. an overstatement of stockholders' equity. D. All of these. E. None of these.

Revenues (1) / Expenses (2) / Assets (3) / Stockholders' equity (4) / Liabilities (5): A. Amounts charged to customers for goods sold or services. B. Economic resources owned that are expected to benefit future time periods. C. Residual interest of owners of a business. D. Amounts owed by an enterprise. E. Costs incurred to produce revenue.