Question 1

Classified balance sheets commonly include the following categories:
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity.
Match the typical classification of each item below with its correct balance sheet category (A through G).
-Store Supplies

Accepted Answer

Store Supplies are typically classified as Current Assets because they are expected to be used or consumed within one year or within the operating cycle of the business, whichever is longer.

Question 2

Match the following terms with the appropriate definition.
-Obligations due to be paid or settled within one year or the operating cycle of a business,whichever is longer.

Accepted Answer

Current liabilities are financial obligations a company is due to pay within one year or within its operating cycle, whichever is longer, fitting the definition provided.

Question 3

Match the following terms with the appropriate definition.
-A ratio that is used to help evaluate a company's ability to pay its short-term obligations,
calculated by dividing current assets by current liabilities.

Accepted Answer

The current ratio is a financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities.

Question 4

Match the following terms with the appropriate definition.
-Entries recorded at the end of each accounting period to transfer end-of-period balances in
revenue,expense,and dividends accounts to the permanent retained earnings account.

Accepted Answer

Closing entries are made at the end of an accounting period to transfer the balances of temporary accounts (like revenue, expenses, and dividends) to a permanent account (retained earnings), preparing the accounts for the next period.

Question 5

Classified balance sheets commonly include the following categories:
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity.
Match the typical classification of each item below with its correct balance sheet category (A through G).
-Long-term Note Payable

Accepted Answer

Long-term Note Payable is classified under long-term liabilities on a balance sheet, which reflects obligations not due within the next twelve months.

Question 6

Match the following types of adjustments with the appropriate transactions.
-Unearned revenue

Accepted Answer

Unearned revenue adjustments are used to record revenue that has been received in advance but not yet earned, which matches option B. This means that the company has received payment for goods or services that it has yet to provide.

Question 7

Classified balance sheets commonly include the following categories:
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity.
Match the typical classification of each item below with its correct balance sheet category (A through G).
-Equity

Accepted Answer

Equity is typically classified under category G on a classified balance sheet.

Question 8

Match the following terms with the appropriate definition.
-The owners' claims on the assets of a company.

Accepted Answer

Stockholders' equity represents the owners' claims on the assets of a company, reflecting the equity capital held by the shareholders.

Question 9

Match the following terms with the appropriate definition.
-A balance sheet that broadly groups items into assets,liabilities and equity.

Accepted Answer

A balance sheet that broadly groups items into assets, liabilities and equity is called an unclassified balance sheet.

Question 10

Match the following types of adjustments with the appropriate transactions.
-Accrued revenue

Accepted Answer

Accrued revenue adjustments are made to record revenue that has been earned during a period but for which the cash has not yet been received. This ensures that the revenue is recognized in the correct accounting period, aligning with the accrual basis of accounting.

Question 11

Match the following terms with the appropriate definition.
-Assets that are held for more than the longer of one year or the operating cycle of the company and are not used in operations.

Accepted Answer

Long-term investments are assets that are held for more than one year or the operating cycle of the company and are not used in operations.

Question 12

Match the following types of adjustments with the appropriate transactions.
-Accrued expense

Accepted Answer

Accrued expenses are expenses that have been incurred but not yet paid, making option A (used to record wages owed, but not yet paid) the correct match.

Question 13

Classified balance sheets commonly include the following categories:
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity.
Match the typical classification of each item below with its correct balance sheet category (A through G).
-Investment maturing in two years

Accepted Answer

Investments maturing in two years are classified as long-term investments because they are not expected to be liquidated within the next year.

Question 14

Match the following terms with the appropriate definition.
-Cash and other resources that are expected to be sold,collected,or used within one year or the company's operating cycle,whichever is longer.

Accepted Answer

Current assets are cash and other resources that are expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer.

Question 15

Classified balance sheets commonly include the following categories:
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity.
Match the typical classification of each item below with its correct balance sheet category (A through G).
-Accounts Payable

Accepted Answer

Accounts Payable is classified as a current liability because it is an obligation that the company expects to pay off within the next year.

Question 16

Match the following terms with the appropriate definition.
-A balance sheet that organizes the assets and liabilities into important subgroups that provide more information to decision makers.

Accepted Answer

A classified balance sheet organizes assets and liabilities into subgroups, providing more detailed information to decision makers.

Question 17

Classified balance sheets commonly include the following categories:
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity.
Match the typical classification of each item below with its correct balance sheet category (A through G).
-Prepaid Rent

Accepted Answer

Prepaid rent is classified as a current asset because it represents a payment made for a future benefit that will be used up within one year or the operating cycle, whichever is longer.

Question 18

Classified balance sheets commonly include the following categories:
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity.
Match the typical classification of each item below with its correct balance sheet category (A through G).
-Equipment used in business operations

Accepted Answer

Equipment used in business operations is classified as a Plant asset, which corresponds to option C in the list of balance sheet categories.

Question 19

Match the following terms with the appropriate definition.
-Tangible assets that are long-lived and used to produce or sell products or services.

Accepted Answer

Plant assets are tangible assets that are long-lived and used in the production or selling of products or services. These include machinery, buildings, and equipment.

Question 20

Match the following terms with the appropriate definition.
-Long-term resources that benefit business operations,usually lack physical form,and have uncertain benefits.

Accepted Answer

Intangible assets are long-term resources that benefit business operations, usually lack physical form, and have uncertain benefits. Examples include patents, copyrights, and trademarks.

Quiz 3: Adjusting Accounts for Financial Statements

Match the following terms with the appropriate definition. -Obligations due to be paid or settled within one year or the operating cycle of a business,whichever is longer.

Match the following terms with the appropriate definition. -A ratio that is used to help evaluate a company's ability to pay its short-term obligations, calculated by dividing current assets by current liabilities.

Match the following terms with the appropriate definition. -Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue,expense,and dividends accounts to the permanent retained earnings account.

Match the following types of adjustments with the appropriate transactions. -Unearned revenue

Match the following terms with the appropriate definition. -The owners' claims on the assets of a company.

Match the following terms with the appropriate definition. -A balance sheet that broadly groups items into assets,liabilities and equity.

Match the following types of adjustments with the appropriate transactions. -Accrued revenue

Match the following terms with the appropriate definition. -Assets that are held for more than the longer of one year or the operating cycle of the company and are not used in operations.

Match the following types of adjustments with the appropriate transactions. -Accrued expense

Match the following terms with the appropriate definition. -Cash and other resources that are expected to be sold,collected,or used within one year or the company's operating cycle,whichever is longer.

Match the following terms with the appropriate definition. -A balance sheet that organizes the assets and liabilities into important subgroups that provide more information to decision makers.

Match the following terms with the appropriate definition. -Tangible assets that are long-lived and used to produce or sell products or services.

Match the following terms with the appropriate definition. -Long-term resources that benefit business operations,usually lack physical form,and have uncertain benefits.