Question 21 of 40
|
2.5/ 2.5 Points
|
Debt management ratios measure __________.
A. how effectively a company is using its cash
|
|
B. how well a company is using debt versus equity position
|
|
C. a company's ability to earn profit
|
|
D. a company's ability to meet payable obligations
|
|
|
Question 22 of 40
|
2.5/ 2.5 Points
|
Of the following accounts, which might appear in the adjusted trial balance, but not in the post-closing trial balance?
A. income summary
|
|
B. owner's capital
|
|
C. accounts payable
|
|
D. depreciation expense
|
|
|
Question 23 of 40
|
2.5/ 2.5 Points
|
The final step in the accounting cycle is __________.
A. preparing the post-closing trial balance
|
|
B. preparing the financial statements
|
|
C. journalizing the closing entries
|
|
D. journalizing the adjusting entries
|
|
|
Question 24 of 40
|
2.5/ 2.5 Points
|
An account in which the balance is not carried over from one accounting period to the next is called a __________.
A. permanent account
|
|
B. real account
|
|
C. temporary account
|
|
D. zero account
|
|
|
Question 25 of 40
|
2.5/ 2.5 Points
|
Income Summary __________.
A. is a temporary account
|
|
B. is a permanent account
|
|
C. summarizes revenue and expenses and transfers the balance to Capital
|
|
D. Both A and C are correct.
|
|
|
Question 26 of 40
|
2.5/ 2.5 Points
|
Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts are called __________.
A. comparative financial statements
|
|
B. common-size statements
|
|
C. cash flow analysis
|
|
D. horizontal analysis
|
|
|
Question 27 of 40
|
2.5/ 2.5 Points
|
Which of the following assets would not be classified as property, plant, and equipment?
A. delivery truck
|
|
B. copyright
|
|
C. land
|
|
D. furniture
|
|
|
Question 28 of 40
|
2.5/ 2.5 Points
|
A common-size comparative statement shows __________.
A. percentages
|
|
B. dollar increases/decreases
|
|
C. whole dollar amounts
|
|
D. None of the above answers are correct.
|
|
|
Question 29 of 40
|
2.5/ 2.5 Points
|
To close the Withdrawals account __________.
A. debit Withdrawals; credit Capital
|
|
B. debit Capital; credit Withdrawals
|
|
C. debit Withdrawals; credit Income Summary
|
|
D. debit Income Summary; credit Withdrawals
|
|
|
Question 30 of 40
|
2.5/ 2.5 Points
|
Closing entries __________.
A. need not be journalized since they appear on the worksheet
|
|
B. need not be posted if the financial statements are prepared from the worksheet
|
|
C. are not needed if adjusting entries are prepared
|
|
D. must be journalized and posted
|
|
|
Question 31 of 40
|
2.5/ 2.5 Points
|
The current ratio for a company with current assets of $70,000, current liabilities of $50,000, total assets of $150,000, and net sales of $80,000, would be __________.
A. 1.4
|
|
B. 0.714
|
|
C. 3.0
|
|
D. 0.875
|
|
|
Question 32 of 40
|
2.5/ 2.5 Points
|
Profitability ratios measure __________.
A. a company's ability to earn profits
|
|
B. a company's ability to meet short-term obligations
|
|
C. how well a company is using debt versus equity
|
|
D. how effectively a company is using its assets
|
|
|
Question 33 of 40
|
2.5/ 2.5 Points
|
Which of the following sequence of actions describes the proper order in the accounting cycle?
A. journalize, post, close, prepare financial statements, adjust, and analyze transactions
|
|
B. prepare financial statements, journalize, post, adjust, analyze transactions, and close
|
|
C. analyze transactions, journalize, post, adjust, prepare financial statements, and close
|
|
D. post, close, prepare financial statements, adjust, analyze transactions, and journalize
|
|
|
Question 34 of 40
|
2.5/ 2.5 Points
|
If current assets are $75,000 and current liabilities are $15,000, the current ratio is __________.
A. 5:1
|
|
B. 0.2:1
|
|
C. 0.5:1
|
|
D. None of the above answers are correct.
|
|
|
Question 35 of 40
|
0.0/ 2.5 Points
|
The balance in the Rent Expense account on the worksheet was $120. The journal entry to close the Rent Expense account is __________.
|
Question 36 of 40
|
2.5/ 2.5 Points
|
If management wishes to know the ability to pay off the upcoming debts of a business, they could use the __________.
A. debt to total assets
|
|
B. current ratio
|
|
C. inventory turnover ratio
|
|
D. times interest earned
|
|
|
Question 37 of 40
|
2.5/ 2.5 Points
|
The current ratio determines the ability of a company to __________.
A. pay off all payables
|
|
B. pay off current payables
|
|
C. manage its ability to earn profit
|
|
D. use its equity
|
|
|
Question 38 of 40
|
2.5/ 2.5 Points
|
For vertical analysis purposes, a base item on a balance sheet is __________.
A. total assets
|
|
B. total equity
|
|
C. total liabilities
|
|
D. net equity
|
|
|
Question 39 of 40
|
2.5/ 2.5 Points
|
Liquidity ratios measure __________.
A. how effectively a company is using its equity
|
|
B. how effectively a company is using its liabilities
|
|
C. a company's ability to pay shareholders
|
|
D. a company's ability to pay off short-term debts
|
|
|
Question 40 of 40
|
0.0/ 2.5 Points
|
The income statement debit column of the worksheet showed the following expenses:
|