Question 1

Balance sheet accounts are called ____________________ accounts because they carry their balances to the next accounting period, and are not closed as long as the company continues to own the asset, owe the liability and have equity.

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Question 2

Intangible assets are long-term resources used to produce or sell products and services; they generally lack ______________ and their benefits are highly ___________.

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Question 3

A current ratio of 2.1 suggests that a company has ____________ current assets to cover current liabilities.

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Question 4

Epee Inc. frequently has accrued revenues at the end of its fiscal year that should be recorded for proper financial statement presentation. Epee Inc.'s fiscal year ends on September 30 of the current year. Epee Inc. has determined through an evaluation of invoices and services rendered that $32,000 of services has been provided as of September 30, but not yet billed. The total contract to be billed for services when completed will be $60,000. Record the following entries:
(a) Accrual of the revenues on September 30.
(b) Receipt of payment from customers on October 9 for the services rendered, assuming that Epee does not prepare reversing entries.
(c) Assuming that Epee prepares reversing entries, reverse the adjusting entry made on September 30.
(d) Assuming that Epee prepares reversing entries, receipt of the payment for the total contract amount on October 9.

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Question 5

A ____________________ helps in preparing financial statements, is useful in preparing interim statements, and is helpful in showing the effects of proposed transactions.

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Question 6

Compute Dave Company's current ratio using the following information:

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Question 7

Revenues, expenses, withdrawals, and Income Summary are called _________________ accounts because they are closed at the end of each accounting period.

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Question 8

A company's post-closing trial balance has a debit total of $475,000 and a credit total of $457,000. This indicates that _________________________.

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Question 9

The unadjusted trial balance of Bade Cleaning Service is entered on the partial work sheet below. Complete the work sheet using the following information:
(a) Salaries earned by employees that are unpaid and unrecorded, $4,000.
(b) An inventory of supplies showed $3,000 of unused supplies still on hand.
(c) Depreciation on automobiles, $30,000.
(d) Services paid in advance by customers of $12,000 have now been provided to customers.
(e) Advertising for November and December in the amount of $8,000 remains unpaid and unrecorded.

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Question 10

The closing process resets _______, _________, and ________ account balances to zero at the end of each accounting period.

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Question 11

The following adjusted trial balance is for Clara Co. at year-end December 31. The credit balance in Clara, Capital at the beginning of the year, January 1, was $320,000. The owner, Sara Clara, invested an additional $100,000 during the current year. The land held for future expansion was also purchased during the current year.  Required:
Prepare a classified balance sheet. (Note: A $21,000 installment on the long-term note payable is due within one year.)

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The answer of The following adjusted trial balance is for...

Question 12

The current portion of long-term debt is classified with the ________________________.

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Question 13

Reversing entries are linked to ____________________ and _____________ that were created by adjusting entries at the end of the prior accounting period.

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Question 14

The ______________ refers to the steps in preparing financial statements for users.

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Question 15

The ___________________ account is used only in the closing process.

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Question 16

The Adjusted Trial Balance of Bade Cleaning Service is entered on the partial work sheet below. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by entering the amount of net income for the reporting period:

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The answer of The Adjusted Trial Balance of Bade Cleaning...

Quiz 4: Completing the Accounting Cycle